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 Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements oct. 1 s. Rey invested 545,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company in exchange for it common stock Oct. 2 The company paid $3,300 cash for four months' rent. (The company's policy is to record prepaid expenses in balance sheet accounts.) oct. The company purchased $1,420 of computer supplies on credit from Harris Office Products. Oct. 5 The company paid $2,220 cash for one year's premium on a property and liability insurance policy. (The company's policy is to record prepaid expenses in balance sheet accounts.) Oct. 6 The company billed Easy Leasing 54,800 for services performed in installing a new web server. Oct. 8 The company paid $1,420 cash for the computer supplies purchased from Harris Office Products on October 3. Oct. 10 The company hired Lyn Addie as a part-tine assistant for 5125 per day, as needed. Oct. 12 The company billed Easy Leasing another $1,400 for services performed Oct. 15 The company received 54,800 cash from Easy Leasing as partial payment on its account. Oct. 17 The company paid 5805 cash to repair computer equipment that was damaged when moving it. Oct. 20 The company paid $1,728 cash for advertisements published in the local newspaper. Oct. 22 The company received $1,400 cash from Easy Leasing on its account. Oct. 28 The company billed IFM Company 55,208 for services performed. Oct. 31 The company paid $875 cash for Lyn Addie's wages for seven days' work. Oct. 31 The company paid 53,600 cash in dividends. Nov. 1 The company reimbursed 5. Rey in cash for business automobile mileage allowance (Rey logged 1,000 eles at $0.32 per mile). tov. 2. The company received 54,633 cash from Liu Corporation for computer services performed. Nov.5 The company purchased computer supplies for $1,125 cash from Harris office Products Nov. 8 The company billed Gone: Co. 55,665 for services performed Nov. 13 The company received notification from Alex's Engineering Co that business Solutions's bid of $3,950 for an upcoming project was accepted. Nov. 18 The company received 52,208 cash from IFM Company as partial payment of the October 28 bili Nov. 22 The company donated $250 cash to the United way in the company's name. Nov. 24 The company completed work and sent a bill for $3.950 to Alex's Engineering Co. toy: 25 The company sent another bli to TFK Company for the past-dve amount of $3,000 Nov. 28 The company reimbursed 5. Rey in cash for business automobile mileage (1,200 miles at $0.92 per mile) How 30 The company paid $1,750 cash for Lyn Addie's wages for 14 days' work. No. 59 The company paid $2,000 cash in dividends: No Date Account Credit 1 Oct 01 Cash Office equipment Computer equipment Common stock Debit 45,000 8,000 20,000 73000 2 Oct 02 Prepaid rent Cash 3,300 3,300 3 Oct 03 Computer supplies Accounts payable 1.420 1.420 Oct 05 Prepaid insurance Cash 2.220 2.220 5 Oct 06 Accounts receivable Computer services revenue 4.800 4.800 6 Oct 08 Accounts payable Cash 1.420 1.420 7 Oct 10 No journal entry required No journal entry required 8 Oct 12 Accounts receivable Computer services revenue 1.400 1.400 9 Oct 15 Cash Accounts receivable 4.800 4 800 10 Oct 17 Repairs expense - Computer Cash 805 805 11 Oct 20 Advertising expense Cash 1.728 1,728 - 12 Oct 22 Cash Accounts receivable 1.400 1.400 13 Oct 28 Accounts receivable Computer services revenue 5208 5.208 14 Oct 31 Wages expense Cash 875 875 15 Oct 31 Dividends Cash 3,600 3.600 16 Nov 01 Mileage expense Cash 320 320 Prey 1 of 1 ! Next 17 Nov 02 Cash Computer services revenue 4,633 4,633 18 Nov 05 Computer supplies Cash 1,125 1.125 19 Nov 08 Accounts receivable Computer services revenue 5,668 5.668 20 Nov 13 No journal entry required No journal entry required 21 Nov 18 Cash Accounts receivable 2208 2.208 22 Nov 22 Miscellaneous expenses Cash 250 250 23 Nov 24 Accounts receivable Computer services revenue 3.950 3.950 24 Nov 25 No journal entry required No journal entry required 25 Nov 28 Mileage expense 384 304 5 Nov 30 Wages expense Cash 1,750 1,750 Nov 30 Dividends Cash 2,000 2.000 Cash Accounts receivable No. Debit Credit Balance No. Debit Credit Balance 1 45,000 5 2 4.800 1.400 8 4 3,300 2,220 1,420 9 6 Date Oct 01 Oct 06 Oct 12 Oct 15 Od 22 Oct 28 Nov 08 Nov 18 Nov 24 4,800 1,400 9 10 12 13 4.800 0 4.800 6.200 1,400 0 5,208 10.876 8,668 12 618 5,208 5,668 805 1,728 11 19 21 Date Oct 01 Oct 01 Od 02 Oct 05 Oct 03 Od 15 Oct 17 Oct 20 Oct 22 Oct 31 Oct 31 Nov 01 Nov 02 Nov 05 Nov 18 Nov 22 Nov 28 Nov 30 Nov 30 2,208 12 14 1,400 23 3,950 0 45,000 41.700 39.480 38,050 42,860 42,055 40.327 41,727 40.852 37.252 36,932 41,565 40.440 42.648 42.398 42,014 40 264 38 264 875 3.600 320 15 4,633 1.125 16 17 18 21 22 25 26 27 2.208 250 384 1.750 2.000 Somnulennupplies Prepaid linsurance No. Debit Credit No. Debit Credit Date Oct 01 Oct 03 Nov 05 Balance 0 1,420 2.545 Date Od 01 Od 05 Balance 0 2,220 3 4 1,420 1.125 2.220 18 Prepaid reht Debit Ofico equipment Debit Credit No. Credit Balance No. Balance Date Od 01 Oct 02 0 Date Oct 01 Oct 01 0 2 3,300 3,300 8.000 8,000 Computer equipment Debit Credit Accounts payable No. No. Debit Credit Date Oct 01 Oct 01 Balance 0 20,000 a 1 20,000 Date Oct 01 Oct 03 Oct 08 3 Balance 0 1,420 0 1.420 6 1.420 Common stock Debit Credit Dividends No. No. Debit Credit Date Oct 01 Oct 01 Balance 0 73,000 73,000 Date Oct 01 Oct 31 Nov 30 15 Balance 0 3,600 5,600 3,600 2,000 27 Wagesponse Debit Credit No. Balance No. Credit 0 Computer Services revenue Date Debit Credit Oct 01 Oct 06 4,800 Od 12 1.400 Oct 28 5.208 Nov 02 4,633 Nov 08 5,668 Nov 24 3,950 Date Oct 01 Oct 31 Nov 30 14 26 Balance 0 875 2,625 875 1.750 5 8 13 17 19 23 look 4,800 6.200 11,408 16.041 21,709 25,659 rences Advertising expense Debit Credit No. Mileage expense Debit Credit No. Date Oct 01 Od 20 Balance 0 1,720 11 1,728 Date Oct 01 Nov 01 Nov 28 16 25 320 384 Balance 0 320 704 Miscellaneous expenses Debit Credit No. Repairs expense Computer Debit Credit No. Balance Date Od 01 Nov 22 Balance 0 250 Date Oct 01 Oct 17 22 250 10 805 805 Show less BUSINESS SOLUTIONS Balance Nov 30, 2011 Account Title Credit ook $ ences Debit 38,264 12,618 2,545 2.220 3,300 8,000 20.000 Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Computer equipment Common stock Dividends Computer services revenue 'Wages expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense - Computer Total 73 000 5,600 25,659 2,625 1,728 704 250 805 98 659 $ 98.659 (General Ledger Income Statement> Income Statement For Two Months Ended November 30, 2019 es Assets: Expenses: Llabilities: Revenues: Stockholders' Equity BUSINESS SOLUTIONS Statement of Retained Earnings For Two Months Ended November 30, 2019 Retained earnings, October 1, 2019 5,600 Add: Owner investments Add: Net income Add: Dividends Add: Net loss Less: Owner Investments Less: Net Income 5,600 (5.600) Statement Balance Sheet> BUSINESS SOLUTIONS Balance Sheet November 30, 2019 Assets: Expenses: Labilities: Revenues: Stockholders' Equity Accounts payable Total liabilities (5,600) Transaction Upea polgulty Od 1) S Rey invested $45,000 cash a $20,000 computer system, and $8,000 of office equipment in the company in exchange for its common stock Oct 2) The company paid $3,300 cash for four months' rent (The company's policy is to record prepaid expenses in balance sheet accounts.) Oct. 3) The company purchased 51.420 of computer supplies Decreased equity Dividends on credit from Hamis Office Products Od 5) The company paid $2,220 cash for one year's premium Decreased equity - Expense on a property and liability insurance policy (The company's policy is to record prepaid expenses in balance sheet Increased equity - Revenue accounts) Increased equity - Stockholder investment Od. 6) The company billed Easy Leasing 54,800 for services performed in installing a new web server Oct 8) The company paid $1,420 cash for the computer supplies purchased from Harris Office Products on October 3 Od 10) The company hired Lyn Addie as a part-time assistant for $125 per day, as needed Oct 12) The company billed Easy Leasing another $1,400 for services performed Oct 15) The company received 54,800 cash from Easy Leasing as partial payment on its account Oct 17) The company paid 5805 cash to repair computer equipment that was damaged when moving it Oct 20) The company paid 51.728 cash for advertisements published in the local newspaper Oct 22) The company received 51,400 cash from Easy Leasing on its account Oct 28) The company billed IFM Company S5 208 for services performed Oct 31) The company paid $875 cash for Lyn Addie's wages for seven days work Od 31) The company paid $3.600 cash in dividends Nov 1) The company reimbursed S Rey in cash for business automobile mileage allowance (Rey logged 1,000 miles at 50.32 per mile) Nov. 2) The company received $4,633 cash from Liu Corporation for computer services performed Nov 5) The company purchased computer supplies for $1.125 cash from Harris Office Products Nov 8) The company billed Gomez Co $5,668 for services performed Nov 13) The company received notification from Alex's Engineering Co that Business Solutions's bid of $3,950 for an upcoming project was accepted Nov 18) The company received $2 208 cash from IFM Company as partial payment of the October 28 bill Nov 22) The company donated $250 cash to the United Way in the company's name Nov 24) The company completed work and sent a bill for $3.950 to Alex's Engineering Co Nov 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) Nov 30) The company paid $1,750 cash for Lyn Addie's wages for 14 days work Nov 30) The company paid $2,000 cash in dividends Total impact on equity 10