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On October 1, 2017, Aster Turane organized a computer service company called Aster Systems. Aster is organized as a sole proprietorship and will provide consulting
On October 1, 2017, Aster Turane organized a computer service company called Aster | |||
Systems. Aster is organized as a sole proprietorship and will provide consulting services, computer | |||
system installations, and custom program development. Aster Systems has adopted the calendar year | |||
for reporting, and expects to prepare the company's first set of financial statements as of | |||
Oct. 31, 2017. The initial chart of accounts for the accounting system includes these items: | |||
Account Number | Account Name | Account Number | Account Name |
101 | Cash | 302 | Aster Turane, Withdrawals |
106 | Accounts Receivable | 403 | Computer Services Revenue |
126 | Computer Supplies | 623 | Wages Expense |
128 | Prepaid Insurance | 655 | Advertising Expense |
131 | Prepaid Rent | 676 | Mileage Expense |
163 | Office Equipment | 678 | Rent Expense |
167 | Computer Equipment | 679 | Insurance Expense |
201 | Accounts Payable | 684 | Repairs Expense, Computer |
301 | Aster Turane, Capital | 699 | Charitable Donations Expense |
Required | Please anwser all MCQ based on the following business transactions. | ||
Please adjust the prepaid accounts before answering the MCQ | |||
Oct. 1 | Aster Turane invested $45,000 cash, a $15,040 computer system, and | ||
$13,000 of office equipment in the business. | |||
2 | Paid six months of rent in advance; $12,000. | ||
3 | Purchased computer supplies on credit for $1,975 from Triple-One Supplies. | ||
5 | Paid $8,640 cash for one year's premium on a property and liability insurance | ||
policy. | |||
6 | Billed Norton Electric $6,300 for installing a new computer system. | ||
8 | Paid for the computer supplies purchased from Triple-One Supplies. | ||
10 | Hired Donald Gee as a part-time assistant for $345 per day, as needed. | ||
12 | Billed Norton Electric another $1,850 for computer services rendered. | ||
15 | Received $1,650 from Norton Electric on its account. | ||
17 | Paid $375 to repair equipment damaged when moving into the | ||
new office. | |||
20 | Paid $1,950 for an advertisement in the local newspaper. | ||
22 | Received the balance owing from Norton Electric on its account. | ||
28 | Billed Whistler Resort $9,400 for services. | ||
31 | Paid Donald Gee for nine days' work. | ||
31 | Aster Turane withdrew $1,200 cash from the business for personal use. | ||
What is the balance of the prepaid rent account at the month end?
-
12000
-
8000
-
24000
-
10000
-
What is the balance of the computer supplies account at the month end?
-
1675
-
1875
-
1975
-
1775
-
What is the balance of the accounts receivable at the month end?
-
8400
-
6400
-
7400
-
9400
-
What is the balance of total fixed assets at the month end?
-
28040
-
28020
-
17040
-
17020
-
What is the balance of the total assets at the month end?
-
80240
-
81240
-
78900
-
7624
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