Question 5, please. Much thanksAnd I just divided the entire question into 3 pieces. Lmk if that's ok or not. (Better in excel )
ok or not.
On October 1, 2020, Elton Worth organized a computer service company called Elton Systems. Elton is organized as a sole proprietorship and will provide consulting services, computer system installations, and custom program development. Elton 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 301 Account Number Account Name 101 Cash 106 Accounts Receivable 126 Computer Supplies 128 Prepaid Insurance 131 Prepaid Rent Office Equipment 167 Computer Equipment 201 Accounts Payable Account Number Account Name Elton Worth, Capital 302 Elton Worth, Withdrawals 403 Computer Services Revenue 623 Wages Expense 655 Advertising Expense 676 Mileage Expense 684 Repairs Expense, Computer 699 Charitable Donations Expense 163 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. S. 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 Elton Worth invested $55,000 cash, a used computer system valued at $11,520, and $19.800 of office equipment in the business. 2 Paid six months of rent in advance: $11880 3 Purchased computer supplies on credit for $1,300 from Kensington Supplies 5 Paid $14,400 cash for one year's premium on a property and liability insurance policy. 6 Billed Battleford Lighting $3,400 for installing a new computer system and providing Battleford Lighting's employees with training 8 Paid for the computer supplies purchased from Kensington Supplies 10 Hired Anne Stafford as a part-time assistant for $265 per day, as needed. 12 Billed Battleford Lighting another $3,590 for computer services rendered. 15 Received $700 from Battleford Lighting on its account. 17 Paid $125 to repair equipment damaged when moving into the new office. 20 Paid $3,100 for an advertisement in the local newspaper. 22 Received the balance owing from Battleford Lighting on its account. 28 Billed Wallace & Sons Inc. $3,380 for services. 31 Paid Anne Stafford for 12 days' work. 31 Elton Worth withdrew $2,500 cash from the business for personal use. Part B Required 16. Prepare journal entries to record each of the following November transactions 17. Post the November entries. 18. Prepare a trial balance at November 30, 2020. 19. Prepare an income statement and a statement of changes in equity for the two months ended November 30, 2020, as well as a balance sheet at November 30, 2020. Nov. 1 Reimbursed Elton Worth's business automobile expense for 940 kilometres at $2.00 per kilometre. 2 Received $4,000 cash from Murray Clothiers for computer services completed today 5 Purchased $2.450 of computer supplies for cash from Kensington Supplies 8 Billed Papier Inc. $1,850 for computer services rendered 13 Notified by Sopher's Electrical that Elton's bid of $9,500 for an upcoming project was accepted 18 Received $600 from Wallace & Sons Inc. against the bill dated October 28. 22 Donated $7,000 to the Red Cross in the company's name. 24 Completed work for Sopher's Electrical and sent a bill for the amount agreed to on November 13. 25 Sent another bill to Wallace & Sons Inc. for the past due amount of $2,780. 28 Reimbursed Elton Worth's business automobile expense for 860 kilometres at $2.00 per kilometre. 30 Paid Anne Stafford for 26 days' work. 30 Elton Worth withdrew $5,500 cash from the business for personal use
