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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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