Question
On October 1, 2021, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program
On October 1, 2021, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development. The company's initial chart of accounts follows. Account Number Account Cash 101 Common stock Number 307 Accounts Receivable 106 Dividends 319 Computer Supplies 126 Computer Services Revenue 403 Prepaid Insurance 128 Wages Expense 623 Prepaid Rent 131 Advertising Expense 655 Office Equipment 163 Mileage Expense 676 Computer Equipment 167 Miscellaneous Expenses 677 Accounts Payable 201 Repairs Expense-Computer 684 October 1 S. Rey invested $46,000 cash, a $27,000 computer system, and $8,000 of office equipment in the company in exchange for common stock. October 2 The company paid $3,300 cash for four months' rent. Hint: Debit Prepaid Rent for $3,300. October 3 The company purchased $1,400 of computer supplies on credit from Harris Office Products. October 5 The company paid $1,920 cash for one year's premium on a property and liability insurance policy. Hint: Debit Prepaid Insurance for $1,920. October 6 The company billed Easy Leasing $4,800 for services performed in installing a new web server. October 8 The company paid $1,400 cash for the computer supplies purchased from Harris Office Products on October 3. October 10 The company hired Lyn Addie as a part-time assistant. October 12 The company billed Easy Leasing another $1,900 for services performed. October 15 The company received $4,800 cash from Easy Leasing as partial payment on its account. October 17 The company paid $785 cash to repair computer equipment that was damaged when moving it. October 20 The company paid $1,698 cash for advertisements. October 22 The company received $1,900 cash from Easy Leasing on its account. October 28 The company billed IFM Company $5,608 for services performed. October 31 The company paid $910 cash for Lyn Addie's wages for seven days' work. October 31 The company paid a $2,800 cash dividend. November 1 The company paid $250 cash for mileage expenses. November 2 The company received $5,233 cash from Liu Corporation for computer services performed. November 5 The company purchased computer supplies for $1,075 cash from Harris Office Products. November 8 The company billed Gomez Company $6,268 for services performed. November 13 The company agreed to perform future services for Alex's Engineering Company. No work has yet been performed. November 18 The company received $3,308 cash from IFM Company as partial payment of the October 28 bill. November 22 The company paid $180 cash for miscellaneous expenses. Hint: Debit Miscellaneous Expenses for $180. November 24 The company completed work and sent a bill for $4,450 to Alex's Engineering Company. November 25 The company sent another bill to IFM Company for the past-due amount of $2,300. November 28 The company paid $300 cash for mileage expenses. November 30 The company paid $1,820 cash for Lyn Addie's wages for 14 days' work. November 30 The company paid a $2,000 cash dividend. Required: 1. Prepare journal entries to record each of the above transactions for Business Solutions. 2. Prepare ledger accounts (in balance column format) and post the journal entries from requirement 1 to them. 3. Prepare a trial balance as of the end of November.
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