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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

Solutions

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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