On October 1, 2020, Adrian Lopez launched a computer services company, Success Systems, which is organized as a corporation and provides consulting services, computer system installations, and custom program development. Lopez adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2020. A list of business transactions for the months of October to December:

Oct. 1 The owner invested $55,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company in exchange for its 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 years premium on a property and liability insurance policy. (Hint: Debit Prepaid Insurance for $2,220.)

6 The company billed Easy Leasing $24,000 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 Oct 3

10 The company hired Lyn Addie as a part-time assistant for $125 per day, as needed.

15 The company received $24,000 cash from Easy Leasing as payment on its account.

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

20 The company paid $1,940 cash for advertisements published in the local newspaper.

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 2 The company received $ 5,140 cash from Liu Corporation for computer services performed.

5 The company purchased computer supplies for $1,125 cash from Harris Office Products.

31 The company paid $2,000 cash in dividends.

Dec.2 Paid $1,025 cash to Hillside Mall for Success Systems share of mall advertising costs.

3 Paid $500 cash for minor repairs to the companys computer.

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

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

20 Completed a project for Liu Corporation and received $6,000cash.

21 Received $11,582 Cash advance from a customer for computer service that will be performed next month22-26 Took the week off for the holidays.31 The company paid $1,582 cash for dividends.

Requirements

Step 1: Journalize each of the business recordable transactions for the months of October to December in the General Journal.You may omit explanations of the transactions. Skip a line between each set of journal entries. (Hint: Enter No Entry required for non-recordable business transactions)

Step 2: Post from General Journal to General Ledger/T-AccountNo.

Step 3: Prepare the Unadjusted Trial Balance

Step 4: The following additional facts are collected for use in making adjusting entries on December 31 prior to preparing financial statements for the companys first three months. Journalize the following adjustingjournal entries in theGeneral Journal on page 6 and then post them to the General Ledger Accounts.

The December 31 inventory count of computer supplies shows $580 still available.

Three months have expired since the 12-month insurance premium was paid in advance.

As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.

Total Depreciation expense for the computer equipment, acquired on October 1, is$1,250

Total Depreciation expense for the office equipment, acquired on October 1, is $400

Three of the four months prepaid rent has expired.

Step 5: Prepare the Adjusted Trial Balance.

Step6: Prepare the 3 Financial Statements on December 31

For this project, you will complete the accounting cycle for a small computer services corporation. You will complete the project manually a. Journalizing transactions b. Posting to Ledger /T-Account C. Trial Balance d. Adjustments (journal, ledger/T-Account) e. Adjusted Trial Balance f. Financial statements g. Overal Neatness / Format (underline, $ signs, etc) On October 1, 2020. Adrian Lopez launched a computer services company, Success Systems, which is organized as a corporation and provides consulting services, computer system installations, and custom program development. Lopez adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2020. A list of business transactions for the months of October to December: Oct. 1 The owner invested $55,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company in exchange for its common stock. 2 The company paid $3,300 cash for four months' rent. (Hint: Debit Prepaid Rent for $3,300.) 3 The company purchased S1,420 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 $24,000 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 Oct 3 10 The company hired Lyn Addie as a part-time assistant for S125 per day, as needed. 15 The company received $24,000 cash from Easy Leasing as payment on its account. 17 The company paid $805 cash to repair computer equipment that was damaged when moving it. 20 The company paid $1,940 cash for advertisements published in the local newspaper. 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.2 The company received $ 5,140 cash from Liu Corporation for computer services performed. 5 The company purchased computer supplies for $1.125 cash from Harris Office Products. 31 The company paid $2,000 cash in dividends. Dec. 2 Paid S1,025 cash to Hillside Mall for Success Systems' share of mall advertising costs. 3 Paid $500 cash for minor repairs to the company's computer. 10 Paid cash to Lyn Addie for six days of work at the rate of S125 per day. 15 Purchased $1,100 of computer supplies on credit from Harris Office Products. 20 Completed a project for Liu Corporation and received S6,000 cash. 21 Received $11.582 Cash advance from a customer for computer service that will be performed next month 22-26 Took the week off for the holidays. 31 The company paid $1,582 cash for dividends. Company Chart of Account: No. Account Cash 101 Accounts Receivable 106 Computer Supplies 126 Prepaid Insurance 128 Prepaid Rent 131 Office Equipment 163 Accumulated Depreciation Office Equpment 164 Computer Equipment 167 Accumulated Depreciation Computer Equiment 168 Accounts Payable 201 Wages Payable 210 Unearned Computer Services Revenue 236 Common Stock 307 Account Retained Earnings Dividends Computer Service Revenue Depreciation Expense-Office Equipment Depreciation Expense- Computer Equipment Wages Expense Insurance Expense Rent Expense Computer Supplies Expense Advertising Expense Mileage Expense Miscellaneous Expenses Repair Expense - Computer Income Summary 318 319 403 612 613 623 637 640 652 655 676 677 684 901 page 2 Requirements: Step 1: Journalize each of the business recordable transactions for the months of October to December in the General Journal. You may omit explanations of the transactions. Skip a line between each set of journal entries. (Hint: Enter "No Entry required' for non-recordable business transactions) Step 2: Post from General Journal to General Ledger/T-Account Step 3: Prepare the Unadjusted Trial Balance No. . . Step 4: The following additional facts are collected for use in making adjusting entries on December 31 prior to preparing financial statements for the company's first three months. Journalize the following adjusting journal entries in the General Journal on page 6 and then post them to the General Ledger Accounts. The December 31 inventory count of computer supplies shows $580 still available. Three months have expired since the 12-month insurance premium was paid in advance. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day. Total Depreciation expense for the computer equipment, acquired on October 1, is $1.250 Total Depreciation expense for the office equipment, acquired on October 1, is $400 Three of the four months' prepaid rent has expired. . . Step 5: Prepare the Adjusted Trial Balance Step 6: Prepare the 3 Financial Statements on December 31 Step 1: Prepare Journal Entries General Journal Date Account Titles Acct No. Debit Credit Step 1: Prepare Journal Entries General Journal Date Account Titles Acet No. Debit Credit Step 4: Prepare Adjusting Entries at year end. General Journal Date Account Titles Acct No. Debit Credit Step 2. Post to General Ledger / T Account . - - FEE T | FFFF 1 EQUITY T T TT FEH T Page Success stem Trial Balance December 31 2013 Unaducted Trial Balance OT. Adjustments or Adjustad Trial Balance or Account Baleno Dr. or laces Comer Suppies Precede Dicement Led Deerhugunan Cerver Ermes leared Degrees.com 4 ACESUL WS Uneemed Cover Services Ren ICOS Dec Come Service Rover Deprecaten gesehen Deci oras-Comment Wapen IB Rentgen Che Suppliers ACES Visega sense Me. E pense ere.Com To page 9 Step 6: Prepare Financial Statements (1 2 Revenues: Retained Earnings, Begin Balance as of Add Net income: Expenses: Less Dividend: Retained Earnings, Ending Balance as of ........ Net Income: Assets: Liabilities: Total Liabilities: Equity: Common Stock Retained Earnings Total Assets: Total Equity Total Liabilities and Equity