On October 1, 2019, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development. Rey 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. Account Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Office Equipment Computer Equipment Accounts Payable No. Account 101 Common Stock 106 Dividends 126 Computer Services Revenue 128 Wages Expense 131 Advertising Expense 163 Mileage Expense 167 Miscellaneous Expenses 201 Repairs Expense-Computer No. 307 319 403 623 OU Oct. 1 S. Rey invested $45,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company in exchange for common stock. 2 The company paid $3,300 cash for four months' rent. Hint: Debit Prepaid Rent for $3,300. 3 The company purchased $1,420 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. Hint: Debit Prepaid Insurance for $2,220. 6 The company billed Easy Leasing $4,800 for services performed in installing a new Web server. 8 The company paid $1,420 cash for the computer supplies purchased from Harris Office Products on October 3. 10 The company hired Lyn Addie as a part-time assistant. 12 The company billed Easy Leasing another $1,400 for services performed. 15 The company received $4,800 cash from Easy 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 $1,728 cash for advertisements published in the local newspaper. 22 The company received $1,400 cash from Easy 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 a $3,600 cash dividend. 1 The company reimbursed s. Rey in cash for business automobile mileage allowance (Rey 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 $1,125 cash from Harris Office Products. 8 The company billed Gomez Co. $5,668 for services performed. 13 The company agreed to perform future services for Alex's Engineering Co. No work has yet been performed. 18 The company received $2,208 cash from IFM Company as partial payment of the October 28 bill. 22 The company paid $250 cash for miscellaneous expenses. Hint: Debit Miscellaneous Expense for $250. 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. Nov. 28 The company reimbursed s. Rey 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 a $2,000 cash dividend. Required 1 Required 2 Required 3 Prepare journal entries to record each of the above transactions for Business Solutions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet S. Rey invested $45,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company in exchange for common stock. Note: Enter debits before credits. General Journal Debit Credit Date Oct 01 Record entry Clear entry View general journal 101: Cash Debit Credit 106: Accounts Receivable Debit Credit Date Balance Date Balance 126: Computer Supplies Debit Credit 128: Prepaid Insurance Debit Credit Date Balance Date Balance 131: Prepaid Rent Debit Credit 163: Office Equipment Debit Credit Date Balance Date Balance 167: Computer Equipment Debit Credit 201: Accounts Payable Debit Credit Date Balance Date Balance 307: Common Stock Debit Credit 319: Dividends Debit Credit Date Balance Date Balance 403: Computer Services Revenue Debit Credit 623: Wages Expense Debit Credit Date Balance Date Balance 655: Advertising Expense Debit Credit 676: Mileage Expense Debit Credit Date Balance Date Balance 677: Miscellaneous Expenses Debit Credit 684: Repairs Expense-Computer Debit Credit Balance Date Balance Date BUSINESS SOLUTIONS Trial Balance November 30 Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Computer equipment Accounts payable Common Stock Dividends Computer services revenue Wages expense Advertising expense Mileage expense Miscellaneous expense Repairs expense-Computer Totals 0 $
