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Prepare Journal Entries, Trial Balance, and Income Statements Oct 1. Graham invested $90,000 cash, a 36,000...

Prepare Journal Entries, Trial Balance, and Income Statements

Oct 1. Graham invested $90,000 cash, a 36,000 computer system, and $18,000 of office equipment in the business

Oct 2. Paid rent in advance $9,000

Oct 3. Purchased computer supplies oncredit for $ 2,640 from Abbott Office Products.

Oct 5. Paid $4,320 cash for one yesr's premium on a property and liability insurance policy

Oct 6. Billed Capital Leasing $6,600 for installing new computer

Oct 8. Paid for the computer supplies purchased from Abbott Office Products

Oct 10. Hired Carly Smith as a part0time asistanat for $200 per day, as needed

Oct 12. Billed Capital Leasing another $2,400 for computer services rendered

Oct1 15. Received $6,600 from Capital leasing on its account

Oct 17. Paid $1,410 to repair computer equipment damaged when movng to a new office

Oct 20. Paid $3,720 for and advertisement in the local newspaper

Oct 22. Received $2,400 from Capital Leasing on its account

Oct 28. Billed Decker Company $6,450 for services

Oct 31. Paid Carly Smith for seven days work

Oct 31. Withdrew $7,200 cash from the business for personal use

Nov 1. Reimbursed graham's business automobile expense for 1,000 kilometers at $1.00 per kilometer

Nov 2. Received $9,300 cash from Elite Corporation for computer services rendered

Nov 5. Purchased $1,920 of computer supplies for cash from Abbott Office Products

Nov 8. Billed Fostek Co. $8,700 for computer services rendered

Nov 13. Notified by Alamo Engineering Co. that Echo's bid of $7,500 for an upcoming project was accepted

Nov 18. Received $3,750 from Decker Company againts the bill dated October 28

Nov 22. Donated $1,500 to the United Way in the company's name

Nove 24. Completed work fr Alamo Engineering Co. and sent a bill for $7,500

Nov 25. Sent another bill to Decker Company for the past due amount of $2,700

Nov 28. Reimbursed Graham's business expense for $1,200 kilometers at $1.00 per kilometer

Nov 30. Paid Carly Smith for 14 days work

Nov 30. Withdrew $3,600 cash from the business for personal use

Expert Solution

	GRAHAM
	General Journal
Date	Journal	Amount (DR)	Amount (CR)
01-Oct	Cash	$ 90,000.00
	Computer System	$ 36,000.00
	Office Equipment	$ 18,000.00
	To Common Stock		$ 1,44,000.00
	(Being amount of Cash,Computer System and Office Equipment invested)
02-Oct	Prepaid Rent	$ 9,000.00
	To Cash		$ 9,000.00
	(Being amount of Rent Paid in advance)
03-Oct	Computer Supplies	$ 2,640.00
	To Accounts Payble		$ 2,640.00
	(Being amount of computer supplies purchased on credit from Abbott Office Products)
05-Oct	Prepaid Insurance	$ 4,320.00
	To Cash		$ 4,320.00
	(Being amount of one year insurance paid )
06-Oct	Accounts Receivable	$ 6,600.00
	To Computer Service Revenue		$ 6,600.00
	(Being amount of computer revenue received from Capital Leasing)
08-Oct	Accounts Payable	$ 2,640.00
	To Cash		$ 2,640.00
	(Being amount of cash paid to Abbott Office Products)
10-Oct	No Entry because hired not paid to Carly


12-Oct	Accounts Receivable	$ 2,400.00
	To Computer Service Revenue		$ 2,400.00
	(Being amount billed to Capital Leasing)
15-Oct	Cash	$ 6,600.00
	To Accounts Receivable		$ 6,600.00
	(Being amount received from Capital leasing)
17-Oct	Repair Expenses	$ 1,410.00
	To Cash		$ 1,410.00
	(Being amount of Repair Expenses of computer repairs)
20-Oct	Advertisement Expenses	$ 3,720.00
	To Cash		$ 3,720.00
	(Being amount paid for advertisement in local newspaper)
22-Oct	Cash	$ 2,400.00
	To Accounts Receivable		$ 2,400.00
	(Being amount received for Capital leasing on account)
28-Oct	Accounts Receivable	$ 6,450.00
	To Computer Revenue		$ 6,450.00
	(Being amount billed to Decker)
31-Oct	Wages	$ 1,400.00
	To Cash		$ 1,400.00
	(Being amount paid to Carly Smith for 7 days work @$200 per day)
31-Oct	Drawings	$ 7,200.00
	To Cash		$ 7,200.00
	(Being amount withdraw for personla use)
01-Nov	Automobile Expenses	$ 1,000.00
	to Cash		$ 1,000.00
	(Being amount reimbursed fo automobile expenses 1000 kilometer @$1 per kilometer)
02-Nov	Cash	$ 9,300.00
	To Computer Service Revenue		$ 9,300.00
	(Being amount of Computer revenue received from Elite Corporation)
05-Nov	Computer Supplies	$ 1,920.00
	To Cash		$ 1,920.00
	(Being amount of Computer supplies purchased fro Abbott Office Products)
08-Nov	Accounts Receivable	$ 8,700.00
	To Computer Revenue		$ 8,700.00
	(Being amount billed to Fostek Co.)
13-Nov	No Entry
18-Nov	Cash	$ 3,750.00
	To Accounts Receivable		$ 3,750.00
	(Being amount received from Decker)

22-Nov
24-Nov	Accounts Receivable	$ 7,500.00
	To Computer Service Revenue		$ 7,500.00
	(Being amount billed to Alamo Engineering Co.)
25-Nov	Accounts Receivable	$ 2,700.00
	To Computer Service Revenue		$ 2,700.00
	(Being amount billed to Decker)
28-Oct	Automobile Expenses	$ 1,200.00
	to Cash		$ 1,200.00
	(Being amount reimbursed fo automobile expenses 1200 kilometer @$1 per kilometer)
30-Nov	Wages	$ 2,800.00
	To Cash		$ 2,800.00
	(Being amount paid to Carley Smith for 14 days @$200 per day)
30-Nov	Drawings	$ 3,600.00
	To Cash		$ 3,600.00
	(Being amount withdraw for personal use)


	Cash A/c			Balance
Date	Title	Debit	Credit	Debit	Credit
01-Oct	Common Stock	$ 90,000.00		$ 90,000.00
02-Oct	Prepaid Rent		$ 9,000.00	$ 81,000.00
05-Oct	Prepaid Insurance		$ 4,320.00	$ 76,680.00
08-Oct	Accounts Payable		$ 2,640.00	$ 74,040.00
15-Oct	Accounts Receivable	$ 6,600.00		$ 80,640.00
17-Oct	Repair Expenses		$ 1,410.00	$ 79,230.00
20-Oct	Advertisement Expenses		$ 3,720.00	$ 75,510.00
22-Oct	Accounts Receivable	$ 2,400.00		$ 77,910.00
31-Oct	Wages Expenses		$ 1,400.00	$ 76,510.00
31-Oct	Drawings		$ 7,200.00	$ 69,310.00
01-Nov	Automobile Expenses		$ 1,000.00	$ 68,310.00
02-Nov	Computer Service Revenue	$ 9,300.00		$ 77,610.00
05-Nov	Computer Supplies		$ 1,920.00	$ 75,690.00
18-Nov	Accounts Receivable	$ 3,750.00		$ 79,440.00
28-Nov	Automobile Expenses		$ 1,200.00	$ 78,240.00
30-Nov	Wages Expenses		$ 2,800.00	$ 75,440.00
30-Nov	Drawings		$ 3,600.00	$ 71,840.00

	Common Stock			Balance
Date	Title	Debit	Credit	Debit	Credit
01-Oct	Cash		$ 90,000.00		$ 90,000.00
	Computer Equipment		$ 36,000.00		$ 1,26,000.00
	Office Equipment		$ 18,000.00		$ 1,44,000.00

	Prepaid Rent
Date	Title	Debit	Credit	Debit	Credit
02-Oct	Cash	$ 9,000.00		$ 9,000.00


	Prepaid Insurance
Date	Title	Debit	Credit	Debit	Credit
05-Oct	Cash	$ 4,320.00		$ 4,320.00


	Computer Supplies
Date	Title	Debit	Credit	Debit	Credit
03-Oct	Accounts Payable	$ 2,640.00		$ 2,640.00
05-Nov	Cash	$ 1,920.00		$ 4,560.00


	Accounts Payable
Date	Title	Debit	Credit	Debit	Credit
03-Oct	Computer Supplies		$ 2,640.00	$ -
08-Oct	Cash			$ 2,640.00


	Accounts Receivable
Date	Title	Debit	Credit	Debit	Credit
06-Oct	Computer Service Revenue	$ 6,600.00		$ 6,600.00
12-Oct	Computer Service Revenue	$ 2,400.00		$ 9,000.00
15-Oct	Cash		$ 6,600.00	$ 2,400.00
22-Oct	Cash		$ 2,400.00	$ -
28-Oct	Computer Service Revenue	$ 6,450.00		$ 6,450.00
08-Nov	Computer Service Revenue	$ 8,700.00		$ 15,150.00
18-Nov	Cash		$ 3,750.00	$ 11,400.00
24-Nov	Computer Service Revenue	$ 7,500.00		$ 18,900.00
25-Nov	Computer Service Revenue	$ 2,700.00		$ 21,600.00


	Advertisement Expenses
Date	Title	Debit	Credit	Debit	Credit
20-Oct	Cash	$ 3,720.00		$ 3,720.00


	Repairs Expenses
Date	Title	Debit	Credit	Debit	Credit
17-Oct	Cash	$ 1,410.00		$ 1,410.00
				$ -

	Automobile Expenses
Date	Title	Debit	Credit	Debit	Credit
01-Nov	Cash	$ 1,000.00		$ 1,000.00
28-Nov	Cash	$ 1,200.00		$ 2,200.00

	Computer Service Revenue
Date	Title	Debit	Credit	Debit	Credit
06-Oct	Accounts Receivable		$ 6,600.00	$ 6,600.00
12-Oct	Accounts Receivable		$ 2,400.00	$ 9,000.00
28-Oct	Accounts Receivable		$ 6,450.00	$ 15,450.00
02-Nov	Cash		$ 9,300.00	$ 24,750.00
08-Nov	Accounts Receivable		$ 8,700.00	$ 33,450.00
24-Nov	Accounts Receivable		$ 7,500.00	$ 40,950.00
25-Nov	Accounts Receivable		$ 2,700.00	$ 43,650.00



	Wages Expenses
Date	Title	Debit	Credit	Debit	Credit
31-Oct	Cash	$ 1,400.00		$ 1,400.00
28-Nov	Cash	$ 2,800.00		$ 4,200.00


	Drawings
Date	Title	Debit	Credit	Debit	Credit
31-Oct	Cash	$ 7,200.00		$ 7,200.00
30-Nov	Cash	$ 3,600.00		$ 10,800.00


	Computer Equipment
Date	Title	Debit	Credit	Debit	Credit

02-Oct	Common Stock	$ 36,000.00		$ 36,000.00


	Office Equipment
Date	Title	Debit	Credit	Debit	Credit

02-Oct	Common Stock	$ 18,000.00		$ 18,000.00

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