On October 1, 2019, Raymond Santana launched a computer services company called Computer Solutions, which provides consulting services, computer system installations, and custom program development. Santana adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2019. The company's initial chart of accounts follows.

No.

Account

No.

Account

101

Cash

236

Unearned computer services revenue

106.1

A/R - Alex's Engineering Co.

307

Common stock

106.2

A/R -Wildcat Services

318

Retained earnings

106.3

A/R -West Leasing

319

Dividends

106.4

A/R -IFM Co.

403

Computer services revenue

106.5

A/R -Liu Corp.

413

Sales

106.6

A/R -Gomez Co.

414

Sales returns and allowances

106.7

A/R -Delta Co.

415

Sales discounts

106.8

A/R -KC, Inc.

502

Cost of goods sold

106.9

A/R -Dream, Inc.

612

Depreciation expenseOffice equipment

119

Merchandise inventory

613

Depreciation expenseComputer equipment

126

Computer supplies

623

Wages expense

128

Prepaid insurance

637

Insurance expense

131

Prepaid rent

640

Rent expense

163

Office equipment

652

Computer supplies expense

164

Accumulated depreciationOffice equipment

655

Advertising expense

167

Computer equipment

676

Mileage expense

168

Accumulated depreciationComputer equipment

677

Miscellaneous expenses

201

Accounts payable

684

Repairs expenseComputer

210

Wages payable

Oct.

1

R. Santana invested $50,000 cash, a $24,000 computer system, and $6,000 of office equipment in the company in exchange for its common stock.

2

The company paid $3,300 cash for four months' rent. (Use Prepaid Rent account.)

3

The company purchased $1,350 of computer supplies on credit from Harris Office Products.

5

The company paid $2,220 cash for one year's premium on a property and liability insurance policy. The company initially records insurance as a prepaid expense.

6

The company billed West Leasing $4,800 for services performed in installing a new Web server.

8

The company paid $1,350 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 $125 per day, as needed.

12

The company billed West Leasing another $1,400 for services performed.

15

The company received $4,800 cash from West Leasing as partial payment on its account.

17

The company paid $805 cash to repair computer equipment that was damaged when moving it.

20

The company paid $1,375 cash for advertisements published in the local newspaper.

22

The company received $1,400 cash from West Leasing on its account.

28

The company billed IFM Company $5,208 for services performed.

31

The company paid $875 cash for Lyn Addie's wages for seven days' work.

31

The company paid $3,600 cash in dividends.

Nov.

1

The company reimbursed R. Santana in cash for business automobile mileage allowance (Santana logged 1,000 miles at $0.32 per mile).

2

The company received $4,633 cash from Liu Corporation for computer services performed.

5

The company purchased computer supplies for $1,075 cash from Harris Office Products.

8

The company billed Gomez Co. $5,750 for services performed.

13

The company received notification from Alex's Engineering Co. that Computer Solutions' bid of $3,950 for an upcoming project was accepted.

18

The company received $2,208 cash from IFM Company as partial payment of the October 28 bill.

22

The company donated $250 cash to the United Way in the company's name.

24

The company completed work and sent a bill for $3,950 to Alex's Engineering Co.

25

The company sent another bill to IFM Company for the past-due amount of $3,000.

28

The company reimbursed R. Santana in cash for business automobile mileage (1,200 miles at $0.32 per mile).

30

The company paid $1,750 cash for Lyn Addie's wages for 14 days' work.

30

The company paid $2,000 cash in dividends.

Dec.

2

Paid $1,025 cash to Hilltop Mall for Computer Solutions' share of mall advertising costs.

3

Paid $500 cash for minor repairs to the company's computer.

4

Received $3,950 cash from Alex's Engineering Co. for the receivable from November.

10

Paid cash to Lyn Addie for six days of work at the rate of $125 per day.

14

Notified by Alex's Engineering Co. that Computer Solutions' bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Business Solutions.

15

Purchased $1,100 of computer supplies on credit from Harris Office Products.

16

Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.

20

Completed a project for Liu Corporation and received $5,625 cash.

22-26

Took the week off for the holidays.

28

Received $3,000 cash from Gomez Co. on its receivable.

29

Reimbursed R. Santana for business automobile mileage (600 miles at $0.32 per mile).

31

The company paid $1,500 cash in dividends.

Required:

1.Open the Excel file provided and save asYourName_ACCT305_PS1. The Excel file includes the following worksheets: general journal, general ledger, and 2019 trial balance. You will add additional worksheets to the file as you complete the assignment. NOTE: You may find it helpful to view two worksheets at the same time. This can be done by using view, new window, side by side.

2.Prepare journal entries to record each of the above transactions for Computer Solutions for October through December 2019 using the general journal sheet in the Excel file provided.

3.Using the general ledger provided in the Excel file, post the transactions from the general journal to the general ledger.

4.Transfer balances from the general ledger to the unadjusted trial balance provided. Use SUM formulas to total columns and ensure your trial balance is in balance. If columns do not balance search for errors and correct! (CHECK FIGURES: Cash - (Oct) 42,674; (Nov) 43,737; (Dec) 53,845; Computer Services Revenue - (Oct) 11,408; (Nov) 25,741; (Dec) 31,366; Advertising Expense - (Oct) 1,375; (Nov) 1,375; (Dec) 2,400

5.Upload your Excel spreadsheet to Blackboard.