On October 1, 2020, Pina Pasquale organized a computer service company called Expert Systems. Expert is organized as a sole proprietorship and will provide consulting services, computer system installations, and custom program development. Pasquale 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: Chart of Accounts 101 cash 301 Pina Pasquale - capital 106 Accounts receivable 302 Pina Pasquale - 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 1. Prepare journal entries to record each of the following November 2020 transactions 2. Post the November 2020 entries G/L accounts or use t-accounts 3. Prepare a trial balance at November 30, 2020 4. Prepare an income statement and a statement of owner's equity for the period ended November 30, 2020, as well as a balance sheet at November 30, 2020 EXPERT SYSTEMS Trial Balance October 31, 2020 Credit Acct. No. 101 106 126 128 131 163 167 201 301 302 Account Title Cash .......... Accounts receivable....... Computer supplies. Prepaid insurance... Prepaid rent........ Office equipment Computer equipment Accounts payable. Pina Pasquale, capital .......... Pina Pasquale, withdrawals Debit $34,555 3,325 1,320 2,160 4,500 9,000 18,000 -0- 72,000 3,600 1 7,725 700 403 623 655 676 684 699 Computer services revenue Wages expense... Advertising expense.. Mileage expense Repairs expense, computer .. Charitable donations expense Totals ........ 1,860 -0- 705 -0- $79,725 $79,725 November 2020 transactions Nov. 1 Reimbursed Pina Pasquale's business automobile expense for 1,000 kilometres at $0.50 per kilometre 2 Received $4,650 cash from Elite Corporation for computer services rendered 5 Purchased $960 of computer supplies for cash from Abbott Office Products. 8 Billed Fostek Co. $4,350 for computer services rendered 13 Notified by Alamo Engineering Co. that Expert's bid of $3,750 for an upcoming project was accepted 18 Received $1,875 from Decker Company against the bill dated October 28. 22 Donated $750 to the United Way in the company's name. 24 Completed work for Alamo Engineering Co. and sent a bill for $3,750 25 Sent another bill to Decker Company for the past due amount of $1,350 28 Reimbursed Pina Pasquale's business automobile expense for 1,200 kilometres at $0.50 per kilometre. 30 Paid Carly Smith for 14 days' work 30 Pina Pasquale withdrew $1,800 cash from the business for personal use
