Question
In: Accounting
On October 1, 2018, Santana Rey launched a computer services company, Business Solutions, that is organized...
On October 1, 2018, 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. Rey uses the calendar year for reporting purposes and expects to prepare the company’s first set of financial statements on December 31, 2018. Oct. 1 S. Rey invested $48,000 cash, a $27,000 computer system, and $8,500 of office equipment in the company in exchange for its common stock. 3 The company purchased $1,340 of computer supplies on credit from Harris Office Products. 6 The company billed Easy Leasing $5,500 for services performed in installing a new web server. 8 The company paid $1,340 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 $130 per day, as needed. 12 The company billed Easy Leasing another $2,300 for services performed. 15 The company received $5,500 cash from Easy Leasing as partial payment toward its account. 17 The company paid $725 cash to repair computer equipment damaged when moving it. 20 The company paid $1,728 cash for advertisements published in the local newspaper. 22 The company received $2,300 cash from Easy Leasing toward its account. 28 The company billed IFM Company $5,238 for services performed. 31 The company paid $910 cash for Lyn Addie’s wages for seven days of work this month. 31 The company paid $3,500 cash in dividends to the owner (sole shareholder). Required: Enter the amount of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign. Enter as per the transaction order provided in the question data.)
Solutions
Expert Solution
| Business Solutions | |||||||||||||||||||
| Accounting Equation | |||||||||||||||||||
| Assets | Liabilities | Equity | |||||||||||||||||
| Date | Cash | + | Accounts Receivable | + | Computer Supplies | + | Computer System | + | Office Equipment | = | Accounts Payable | + | Common Stock | - | Dividends | + | Revenues | - | Expenses |
| 1-Oct | $48,000 | + | + | + | $27,000 | + | $8,500 | = | + | $83,500 | - | ||||||||
| 3-Oct | + | + | $1,340 | + | + | = | $1,340 | + | - | ||||||||||
| 6-Oct | + | $5,500 | + | + | + | = | + | - | + | $5,500 | |||||||||
| 8-Oct | ($1,340) | + | + | + | + | = | ($1,340) | + | - | + | - | ||||||||
| 12-Oct | + | $2,300 | + | + | + | = | + | - | + | $2,300 | - | ||||||||
| 15-Oct | $5,500 | + | ($5,500) | + | + | + | = | + | - | + | - | ||||||||
| 17-Oct | ($725) | + | + | + | + | = | + | - | + | - | $725 | ||||||||
| 20-Oct | ($1,728) | + | + | + | + | = | + | - | + | - | $1,728 | ||||||||
| 22-Oct | $2,300 | + | ($2,300) | + | + | + | = | + | - | + | - | ||||||||
| 28-Oct | + | $5,238 | + | + | + | = | + | - | + | $5,238 | - | ||||||||
| 31-Oct | ($910) | + | + | + | + | = | + | - | + | - | $910 | ||||||||
| 31-Oct | ($3,500) | + | + | + | = | + | - | $3,500 | + | - | |||||||||
| Balance | $47,597 | + | $5,238 | + | $1,340 | + | $27,000 | + | $8,500 | = | 0 | + | $83,500 | - | $3,500 | + | $13,038 | - | $3,363 |
ekkarill92 answered 2 years agoRelated Solutions
On October 1, 2017, Santana Rey launched a computer services company, Business Solutions, that is organized...
On October 1, 2017, Santana Rey launched a computer services
company, Business Solutions, that is organized as a proprietorship
and provides consulting services, computer system installations,
and custom program development. Rey adopts the calendar year for
reporting purposes and expects to prepare the company’s first set
of financial statements on December 31, 2017.
Oct.
1
S. Rey invested $50,000 cash, a $24,000 computer system, and
$12,000 of office equipment in the company.
3
The company
purchased $1,400 of computer supplies...
On October 1, 2017, Santana Rey launched a computer services company called Business Solutions, which provides...
On October 1, 2017, Santana Rey launched a computer services
company called Business Solutions, which provides consulting
services, computer system installations, and custom program
development. Rey adopts the calendar year for reporting purposes
and expects to prepare the company’s first set of financial
statements on December 31, 2017. The company’s initial chart of
accounts follows.
Account
No.
Account
No.
Cash
101
Common Stock
307
Accounts Receivable
106
Dividends
319
Computer Supplies
126
Computer Services Revenue
403
Prepaid Insurance
128
Wages...
On October 1, 2019, Santana Rey launched a computer services company called Business Solutions, which provides...
On October 1, 2019, Santana Rey launched a computer services
company called Business Solutions, which provides consulting
services, computer system installations, and custom program
development. Rey adopts the calendar year for reporting purposes
and expects to prepare the company’s first set of financial
statements on December 31, 2017. The company’s initial chart of
accounts follows.
Account
No.
Account
No.
Cash
101
Common Stock
307
Accounts Receivable
106
Dividends
319
Computer Supplies
126
Computer Services Revenue
403
Prepaid Insurance
128
Wages...
Accounting 2140 – Comprehensive Problem On October 1, 2019, Santana Rey launched a computer services company...
Accounting 2140 – Comprehensive Problem
On October 1, 2019, Santana Rey launched a computer services
company called Business Solutions, which provides consulting
services, computer system installations, and custom program
development. Rey adopts the calendar year for reporting purposes
and expects to prepare the company’s first set of financial
statements on December 31, 2019. After the success of the company’s
first two months, Santana Rey continues to operate Business
Solutions. The November 30, 2019, unadjusted trial balance of
Business Solutions (reflecting...
Santana Rey created Business Solutions on October 1, 2017. The company has been succesful, and Santana...
Santana Rey created Business Solutions on October 1, 2017. The
company has been succesful, and Santana plans to expand her
business. She believes that an additional $86,000 is needed and is
investigating three funding sources.
a. Santana's sister Cicely is willing to invest $86,000 in the
business as a comman shareholder. Since Santana currently has about
$129,000 invested in the business, Cicely's investment will mean
that Santana will maintain about 60% ownership and Cicely will have
40% ownership of Business...
Santana Rey created Business Solutions on October 1, 2017. The company has been successful, and Santana plans to expand her business.
Santana Rey created Business Solutions on October 1, 2017. The company has been successful, and Santana plans to expand her business. She believes that an additional $86,000 is needed and is investigating three funding sources.
⦁ Santana’s sister Cicely is willing to invest $86,000 in the business as a common shareholder. Since Santana currently has about $129,000 invested in the business, Cicely’s investment will mean that Santana will maintain about 60% ownership and Cicely will have 40% ownership of Business...
Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its...
Santana Rey created Business Solutions on October 1, 2019. The
company has been successful, and its list of customers has grown.
To accommodate the growth, the accounting system is modified to set
up separate accounts for each customer. The following chart of
accounts includes the account number used for each account and any
balance as of December 31, 2019. Santana Rey decided to add a
fourth digit with a decimal point to the 106 account number that
had been used...
Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its...
Santana Rey created Business Solutions on October 1, 2019. The
company has been successful, and its list of customers has grown.
To accommodate the growth, the accounting system is modified to set
up separate accounts for each customer. The following chart of
accounts includes the account number used for each account and any
balance as of December 31, 2019. Santana Rey decided to add a
fourth digit with a decimal point to the 106 account number that
had been used...
Santana Rey created Business Solutions on October 1, 2020. The company has been successful, and its...
Santana Rey created Business Solutions on October 1, 2020. The
company has been successful, and its list of customers has grown.
To accommodate the growth, the accounting system is modified to set
up separate accounts for each customer. The following chart of
accounts includes the account number used for each account and any
balance as of December 31, 2020. Santana Rey decided to add a
fourth digit with a decimal point to the 106 account number that
had been used...
Santana Rey created Business Solutions on October 1, 2020. The company has been successful, and its...
Santana Rey created Business Solutions on October 1, 2020. The
company has been successful, and its list of customers has grown.
To accommodate the growth, the accounting system is modified to set
up separate accounts for each customer. The following chart of
accounts includes the account number used for each account and any
balance as of December 31, 2020. Santana Rey decided to add a
fourth digit with a decimal point to the 106 account number that
had been used...
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