the owner 3. Prepare a July 31 balance she 1 ment was not completed, the problem can begin at this point. This serial problem started in Chapter 1 and continues through most of the chapters. If the Chapter ses opment. Rey adopts the calendar year for reporting purposes and expects to prepare the company's first Solutions, which provides consulting services, computer system installations, and custom program devel SP 2 On October 1, 2019, Santana Rey launched a computer services company called Business of financial statements on December 31, 2019. The company's initial chart of accounts follows. No. No. Account Account 101 106 126 128 + - Cash..... Accounts Receivable Computer Supplies Prepald Insurance. Prepaid Rent Office Equipment Computer Equipment Accounts Payable. S. Rey, Capital..... S. Rey, Withdrawals Computer Services Revenue Wages Expense Advertising Expense. Mileage Expense Miscellaneous Expenses Repairs Expense-Computer 301 302 403 623 655 676 677 684 131 163 167 201 Required 1. Prepare journal entries to record each of the following transactions for Business Solutions. Oct. 1 S. Rey invested $45,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company 2 The company paid $3,300 cash for four months' rent. Hint: Debit Prepaid Rent for $3,300. 3 The company purchased $1,420 of computer supplies on credit from Harris Office Products. 5 The company paid $2,220 cash for one year's premium on a property and liability insurance policy. Hint: Debit Prepaid Insurance for $2,220. 6 The company billed Easy Leasing $4,800 for services performed in installing a new web server. 8 The company paid $1,420 cash for the computer supplies purchased from Harris Office Prod- ucts on October 3. 10 The company hired Lyn Addie as a part-time assistant. 12 The company billed Easy Leasing another $1,400 for services performed. 15 The company received $4,800 cash from Easy Leasing as partial payment on its account. 17 The company paid $805 cash to repair computer equipment that was damaged when moving it. 20 The company paid $1,728 cash for advertisements published in the local newspaper. 22 The company received $1,400 cash from Easy Leasing on its account. 28 The company billed IFM Company $5,208 for services performed. 31 The company paid $875 cash for Lyn Addie's wages for seven days' work. 31 S. Rey withdrew $3,600 cash from the company for personal use. Nov. 1 The company reimbursed S. Rey in cash for business automobile mileage allowance (Rey logged 1,000 miles at $0.32 per mile). 2 The company received $4,633 cash from Liu Corporation for computer services performed. 5 The company purchased computer supplies for $1,125 cash from Harris Office Products. 8 The company billed Gomez Co. $5,668 for services performed. 13 The company agreed to perform future services for Alex's Engineering Co. No work has yet been performed. 18 The company received $2,208 cash from IFM Company as partial payment of the October 28 bill. 22 The company paid $250 cash for miscellaneous expenses. Hint: Debit Miscellaneous Expenses for $250. 24 The company completed work and sent a bill for $3,950 to Alex's Engineering Co. 25 The company sent another bill to IFM Company for the past-due amount of $3,000. No entt 28 The company reimbursed S. Rey in cash for business automobile mileage (1,200 miles at $0.32 per mile) Deb nhage Ex. 30 The company paid $1,750 cash for Lyn Addie's wages for 14 days' work. 30 S. Rey withdrew $2,000 cash from the company for personal use. 2. Open ledger accounts (in balance column format) and post the journal entries from part 1 to them. 3. Prepare a trial balance as of the end of November. Using transactions from the following assignments along with the General Ledger tool, prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial state- ments are automatically generated based on the journal entries recorded. GL 2-1 Transactions from the FastForward illustration in this chapter GL 2-2 Based on Exercise 2-9 GL 2-3 Based on Exercise 2-12 GL 2-4 Based on Problem 2-1A Using transactions from the following assignments, record journal entries, create financial statements, and assess the impact of each transaction on financial statements. GL 2-5 Based on Problem 2-2A GL 2-7 Based on Problem 2-4A GL 2-6 Based on Problem 2-3A GL 2-8 Based on the Serial Problem SP 2
