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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.
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 companys first set of financial statements on December 31, 2019. The companys initial chart of accounts follows.
Oct. 1
R. Santana invested $55,000 cash, a $19,000 computer system, and $5,000 of office equipment in the company in exchange for its common stock.
2 The company paid $3,500 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 $2,340 cash for one years premium on a property and liability insurance policy. The company initially records insurance as a prepaid expense.
Nov. 1
The company reimbursed R. Santana in cash for business automobile
Dec. 2
3 4
10
Paid $1,025 cash to Hilltop Mall for Computer Solutions share of mall advertising costs.
Paid $500 cash for minor repairs to the companys computer.
Received $3,950 cash from Alexs Engineering Co. for the receivable from November.
Paid cash to Lyn Addie for six days of work at the rate of $150 per day.
6 The company billed West Leasing $4,300 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 $150 per day, as needed.
12 The company billed West Leasing another $1,400 for services performed. 15 The company received $4,300 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 $5,340 for services performed.
31 The company paid $1,050 cash for Lyn Addie's wages for seven days'
work.
31 The company paid $3,600 cash in dividends.
mileage allowance (Santana logged 1,000 miles at $0.32 per mile).
2 The company received $4,425 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 Alexs Engineering Co. that Computer Solutions bid of $3,950 for an upcoming project was accepted.
18 The company received $2,340 cash from IFM Company as partial payment of the October 28 bill.
22 The company donated $300 cash to the United Way in the company's name.
24 The company completed work and sent a bill for $3,950 to Alexs 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 $2,100 cash for Lyn Addie's wages for 14 days' work. 30 The company paid $2,000 cash in dividends.
14 Notified by Alexs Engineering Co. that Computer Solutions bid of $7,000 on a proposed project has been accepted. Alexs 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.
2226 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 $1,800 cash in dividends.
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