Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On October 1, 2019, Santana Rey launched a computer services company, Business Solutions, that is organized as a corporation and provides consulting services, computer system
On October 1, 2019, Santana Rey launched a computer services company, Business Solutions, that is organized as a corporation and provides consulting services, computer system installations, and custom program development. 1 S. Rey invested $55,000 cash, a $24,000 computer system, and $12,500 of office equipment in the company in exchange for its common stock. 3 The company purchased $1,370 of computer supplies on credit from Harris Office Products. 6 The company billed Easy Leasing $5,300 for services performed in installing a new web server. 8 The company paid $1,370 cash for the computer supplies purchased from Harris Office Products on October 3. 10 The company hired Lyn Addie as a part-time assistant for $150 per day, as needed. 12 The company billed Easy Leasing another $1,700 for services performed. 15 The company received $5,300 cash from Easy Leasing as partial payment toward its account. 17 The company paid $715 cash to repair computer equipment damaged when moving it. 20 The company paid $1,658 cash for advertisements published in the local newspaper. 22 The company received $1,700 cash from Easy Leasing toward its account. 28 The company billed IFM Company $5,253 for services performed. 31 The company paid $1,050 cash for Lyn Addie's wages for seven days of work this month. 31 The company paid $3,000 cash in dividends to the owner (sole shareholder). Oct. Required: Enter the amount of each transaction on individual items of the accounting equation. Show new balances after each transaction. (Enter decreases to account balances with a minus sign. Enter as per the transaction order provided in the question data.) Assets Liabilities Equity Accounts Computer Supplies Computer System Office Common Accounts Date Cash Dividends Revenues Expenses Equipment Receivable Payable Stock Oct. 1 2,400 + $ 12,500 = 55,000 + 1,370 + Oct. 3 Bal. 0+ 2,400 + 55,000 + 1,370 + 12,500 = Ol+ 5,300 + Oct. 6 55,000 + 12,500 = 1,370 + 2,400 + 5,300 + Bal. (1,370)+ Oct. 8 2,400 + 53,630 + 1,370 + 12,500 = Bal. 5,300 + 01+ Ol+ Oct. 10 53,630 + 1,370 + 12,500 = 5,300 + 2,400 + 0l + Bal. Oct. 12 12,500 = 1,370 + 2,400 + Bal. 53,630 + 5,300 + 5,300 + 5,300 + Oct. 15 10,600 + 58,930 + 1,370 + 2,400 + 12,500 = Bal. Oct. 17 10,600 + 1,370 + Bal. 58,930 + 2,400 + 12,500 = ol + Oct. 20 10,600 + Bal. 58,930 + 1,370 + 2,400 + 12,500 = Oct. 22 58,930 + 1,370 + 2,400 + 12,500 = Bal. 10,600 + Oct. 28 10,600 + 58,930 + 1,370 + Ol+ Bal. 2,400 + 12,500 = 01+ Oct. 31 Bal. 58,930 + 10,600 + 1,370 + 2,400 + 12,500 = Oct. 31 10,600 + $ 2,400 + $ 12,500 - $ 1,370 + $ 58,930 + $ 2$ Bal
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started