On October 1, 2020, Calder Willis organized a computer service company called Calder
Systems. Calder is organized as a sole proprietorship and will provide consulting services, computer
system installations, and custom program development. Willis has adopted the calendar year
for reporting, and expects to prepare the company's first set of financial statements as of
December 31, 2020. The initial chart of accounts for the accounting system includes these items:
Account Number	Account Name	Account Number	Account Name
101	Cash	301	Calder Willis, Capital
106	Accounts Receivable	302	Calder Willis, Withdrawals
126	Computer Supplies	403	Computer Services Revenue
128	Prepaid Insurance	623	Wages Expense
131	Prepaid Rent	655	Advertising Expense
163	Office Equipment	676	Mileage Expense
167	Computer Equipment	684	Repairs Expense, Computer
201	Accounts Payable	699	Charitable Donations Expense
Part A
Required
1. Set up balance column accounts based on the chart of accounts provided.
2. Prepare journal entries to record each of the following October transactions.
3. Post the October entries.
4. Prepare a trial balance at October 31, 2020.
5. Prepare an income statement and a statement of changes in equity for the month ended
October 31, 2020, as well as a balance sheet at October 31, 2020.
Oct. 1	Calder Willis invested $42,000 cash, a used computer system valued at $5,700,
	and $10,500 of office equipment in the business.
2	Paid six months of rent in advance; $14,700.
3	Purchased computer supplies on credit for $2,490 from Sweeny Stationary.
5	Paid $7,080 cash for one year's premium on a property and liability insurance
	policy.
6	Billed ECOF Millwork $3,430 for installing a new computer system
	and providing ECOF Millwork's employees with training.
8	Paid for the computer supplies purchased from Sweeny Stationary.
10	Hired Justin Ng as a part-time assistant for $350 per day, as needed.
12	Billed ECOF Millwork another $1,105 for computer services rendered.
15	Received $1,500 from ECOF Millwork on its account.
17	Paid $315 to repair equipment damaged when moving into the
	new office.
20	Paid $2,090 for an advertisement in the local newspaper.
22	Received the balance owing from ECOF Millwork on its account.
28	Billed Northern Lights Co. $3,430 for services.
31	Paid Justin Ng for 15 days' work.
31	Calder Willis withdrew $1,400 cash from the business for personal use.