w connect SERIAL PROBLEM Serial problem started in Chapter 1. If the Chapter 1 segment was not completed, the problem can begin Business Solutions at this point. It is available in Connect with an algorithmic option. P1 A1 SP 2 On October 1, 2021, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program devel- opment. The company's initial chart of accounts follows. Account No. Account No. Cash................... 101 Common stock .................. 307 Accounts Receivable . .... 106 Dividends ......... .. . . . . . . ... 319 126 403 Computer Supplies . ...... Computer Services Revenue . ...... Prepaid Insurance. . ...... 128 Wages Expense .... . ....... 623 131 Advertising Expense. . ..... 655 Prepaid Rent . ........... Office Equipment . ....... 163 Mileage Expense ... 676 167 Miscellaneous Expenses ... 677 Computer Equipment . .... 201 Repairs Expense-Computer ....... 684 Accounts Payable . ....... Alexander Image/Shutterstock 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 in exchange for common stock. The company paid $3,300 cash for four months' rent. Hint: Debit Prepaid Rent for $3,300. UIWN The company purchased $1,420 of computer supplies on credit from Harris Office Products. 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. The company hired Lyn Addie as a part-time assistant. 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. 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 The company paid a $3,600 cash dividend. Nov. 1 The company paid $320 cash for mileage expenses. 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. 00 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. [continued on next page] " roya pl, IOU cash dividend. wa wit receivable created in transaction k.Chapter 2 Accounting for Business Transactions 81 28 The company paid $384 cash for mileage expenses. 30 The company paid $1,750 cash for Lyn Addie's wages for 14 days' work. 30 The company paid a $2,000 cash dividend. Check (2) Cash, Nov. 30 2. Open ledger accounts (in balance column format) and post the journal entries from part 1 to them. bal., $38.264 3. Prepare a trial balance as of the end of November. (3) Trial bal. totals, $98,659 Mc connect