Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SP 2 Serial Problem Business Solutions (Algo) LO A1, P1 On October 1, 2021, Santana Rey launched a computer services company called Business Solutions,

image text in transcribedimage text in transcribed

SP 2 Serial Problem Business Solutions (Algo) LO A1, P1 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 Account Cash Number 101 Number S. Rey, Capital 301 Accounts Receivable 106 S. Rey, Withdrawals 302 Computer Supplies 126 Computer Services Revenue 403 Prepaid Insurance 128 Wages Expense 623 Prepaid Rent Office Equipment Computer Equipment 131 Advertising Expense 655 163 Mileage Expense 676 167 Miscellaneous Expenses 677 Accounts Payable 201 Repairs Expense-Computer 684 October 1 S. Rey invested $48,000 cash, a $28,000 computer system, and $9,000 of office equipment in the company. October 2 The company paid $3,280 cash for four months' rent. Hint: Debit Prepaid Rent for $3,280. October 3 The company purchased $1,320 of computer supplies on credit from Harris Office Products. October 5 The company paid $1,980 cash for one year's premium on a property and liability insurance policy. Hint: Debit Prepaid Insurance for $1,980. October 6 The company billed Easy Leasing $5,300 for services performed in installing a new Web server. October 8 The company paid $1,320 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 $1,500 for services performed. October 15 The company received $5,300 cash from Easy Leasing as partial payment on its account. October 17 The company paid $770 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 $1,500 cash from Easy Leasing on its account. October 28 The company billed IFM Company $6,108 for services performed. October 31 The company paid $1,015 cash for Lyn Addie's wages for seven days' work. October 31 S. Rey withdrew $3,000 cash from the company for personal use. November 1 The company paid $310 cash for mileage expenses. November 2 The company received $4,933 cash from Liu Corporation for computer services performed. November 5 The company purchased computer supplies for $1,035 cash from Harris Office Products. November 8 The company billed Gomez Company $5,968 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 $4,108 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 $4,950 to Alex's Engineering Company. November 25 The company sent another bill to IFM Company for the past-due amount of $2,000. November 28 The company paid $372 cash for mileage expenses. November 30 The company paid $2,030 cash for Lyn Addie's wages for 14 days' work. November 30 S. Rey withdrew $1,500 cash from the company for personal use.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster

4th edition

1405888202, 978-0273711490, 273711490, 978-1405888202

More Books

Students also viewed these Accounting questions

Question

Tele panitariat the time Tele panitariat the time

Answered: 1 week ago

Question

What is an access control list?

Answered: 1 week ago

Question

How does service quality differ from manufacturing quality?

Answered: 1 week ago