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 Smith Computer Center.
On July 1, 201X, Thad Feldman decided to begin his own computer service business. He named the business the Smith Computer Center. During the first month, Thad conducted the following business transactions:
a. Invested $6,000 of his savings into the business.
b. Paid $1,800 (check #8095) for the computer from A-Tech, Inc.
c. Paid $3,300 (check #8096) for office equipment from Bertha and Pac Furniture, Inc.
d. Set up a new account with The Staple Store and purchased $200 in office supplies on credit.
e. Paid July rent $500 (check #8097).
f. Repaired a system for a customer and collected $800.
g. Collected $600 for system upgrade labor charge from a customer.
h. Electric bill due but unpaid, $75.
i. Collected $1,800 for services performed on Phil's Photography computers.
j. Withdrew $175 (check #8098) to take his wife, Chelsea, out in celebration of opening the new business.

Transcribed Image Text:

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