Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On October 1, 2017, Santana Rey launched a computer services company, Business Solutions, that is organized as a proprietorship and provides consulting services, computer system

On October 1, 2017, Santana Rey launched a computer services company, Business Solutions, that is organized as a proprietorship and provides consulting services, computer system installations, and custom program development. Rey adopts the calendar year for reporting purposes and expects to prepare the companys first set of financial statements on December 31, 2017.

Oct. 1

S. Rey invested $50,000 cash, a $24,000 computer system, and $12,000 of office equipment in the company.

3 The company purchased $1,400 of computer supplies on credit from Harris Office Products.
6 The company billed Easy Leasing $5,400 for services performed in installing a new web server.
8

The company paid $1,400 cash for the computer supplies purchased from Harris Office Products on October 3.

10 The company hired Lyn Addie as a part-time assistant for $140 per day, as needed.
12 The company billed Easy Leasing another $2,000 for services performed.
15 The company received $5,400 cash from Easy Leasing as partial payment toward its account.
17 The company paid $750 cash to repair computer equipment damaged when moving it.
20 The company paid $1,648 cash for advertisements published in the local newspaper.
22 The company received $2,000 cash from Easy Leasing toward its account.
28 The company billed IFM Company $5,303 for services performed.
31 The company paid $980 cash for Lyn Addies wages for seven days of work this month.
31 S. Rey withdrew $3,400 cash from the company for personal use.

Required: Enter the amount of each transaction on individual items of the accounting equation. Show new balances after each transaction. (Enter decreases to account balances with a minus sign. Enter as per the transaction order provided in the question data.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions