Serial Problem starts here and continues throughout the book. SP 1 On October 1, 2017, Santana Rey launched a computer services company. Business Solutions that is organized as a proprietorship and provides consulting services. computer system installations, and cus. tom program development. Rey adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2017. SERIAL PROBLEM Business Solutions C4 P1 Required Create a table like the one in Exhibit 1.9 using the following headings for columns: Cash; Accounts Receivable; Computer Supplies; Computer System; Office Equipment; Accounts Payable; S. Rey, Capital: S. Rey. Withdrawals; Revenues; and Expenses. Then use additions and subtractions within the table to show the dollar effects for each of the following October transactions for Business Solutions on the indi vidual items of the accounting equation. Show new balances after each transaction. Oct. 1 3 6 8 Alexander image/Shutterstock 10 12 15 S. Rey invested $45,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company. The company purchased $1,420 of computer supplies on credit from Harris Office Products. The company billed Easy Leasing $4,800 for services performed in installing a new web server. The company paid $1.420 cash for the computer supplies purchased from Harris Office Prod. ucts on October 3. The company hired Lyn Addie as a part-time assistant for $125 per day, as needed. The company billed Easy Leasing another $1,400 for services performed. The company received $4,800 cash from Easy Leasing as partial payment toward its account. The company paid $805 cash to repair computer equipment damaged when moving it. The company paid $1.728 cash for advertisements published in the local newspaper. The company received $1,400 cash from Easy Leasing toward its account. The company billed IFM Company $5,208 for services performed The company paid $875 cash for Lyn Addie's wages for seven days of work this month. S. Rey withdrew $3,600 cash from the company for personal use. 17 20 22 28 31 31 Check Ending balances: Cash, $42.772: Revenues, $11.408. Expenses, $3.40 Summary of Transactions We summarize in Exhibit 1.9 the effects of these 11 transactions of FastForward using the EX accounting equation. We see that the accounting equation remains in balance after each Summary of Transactions transaction. Using the Accounting Equation Assets = Liabilities + Equity Cash + Accounts Receivable + Supplies + Equipment Accounts Payable + - C. Taylor, Withdrawals + Revenues C. Taylor. Capital $30,000 - Expenses (1) (2) Bal. (3) Bal. $30,000 - 2,500 27,500 -26,000 1,500 + $2,500 + 2,500 30,000 + $26,000 + 26,000 30,000 + + + 2,500 7,100 9,600 - Ball + 26.000 +$7.100 7,100 + 30,000 + 9,600 + 26,000 7,100 + 30,000 + + $4,200 4.200 1,500 + 4,200 5,700 - 1,000 4,700 - 700 4,000 + 9,600 + 26,000 - 7,100 + 30,000 - $1,000 - 1,000 + 4,200 700 (7) Bal. (8) + 9,600 + 26,000 - 7,100 + 30,000 - 1,700 + $1,900 + + + 4,200 1,600 300 6.100 + 9,600 + 26,000 - 7,100 + 30,000 - 1,700 + 9,600 + 26,000 - + 30,000 + 6,100 - 1,700 Bal. 4,000 + 1,900 (9) + 1,900 - 1,900 Bal. 5,900 + 0 (10) - 900 Bal. 5,000 + 0 (11) - 200 Bal. $ 4,800 + $ 0 - 7,100 900 6,200 + 9.600 + 26,000 + 30,000 + 6,100 - 1,700 + $ 9,600 + $ 26,000 = $6,200 + $ 30,000 - $200 - $200 + $6,100 - $1,700