The following problem continues from one chapter to the next, carrying the balances of each month forward. Each chapter focuses on the learning experience of the chapter, adds information as the business grows and shows how critical the knowledge of accounting is to the performance of a business decision-maker.
Assignment
1. Set up an expanded accounting equation spreadsheet using the following accounts:

2. Analyze and record each transaction in the expanded accounting equation.
3. Prepare the financial statements ending July 31 for Sanchez Computer Center. On July 1, 201X, Tony Freedman decided to begin his own computer service business. He named the business the Sanchez Computer Center. During the first month Tony conducted the following business transactions:
a. Invested $4,500 of his savings into the business.
b. Paid $1,200 (check #8095) for the computer from Multi Systems, Inc.
c. Paid $600 (check #8096) for office equipment from Office Furniture, Inc.
d. Set up a new account with Office Depot and purchased $250 in office supplies on credit.
e. Paid July rent, $400 (check #8097).
f. Repaired a system for a customer and collected $250.
g. Collected $200 for system upgrade labor charge from a customer.
h. Electric bill due but unpaid, $85.
i. Collected $1,200 for services performed on Taylor Golf computers.
j. Withdrew $100 (check #8098) to take his wife, Carol, out in celebration of opening the newbusiness.

Transcribed Image Text:

Liabilities Assets Cash Supplies Computer Shop Equipment Office Equipment Owner's Equity Freedman, Capital Freedman, Withdrawal Service Revenue Expenses (notate type) Accounts Payable