Question

On October 1, 2013, Adrian Lopez launched a computer services company, Success Systems, which is organized as a corporation and provides consulting services, computer system installations, and custom program development. Lopez adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2013. A list of business transactions for the months of October to December:

Oct.1Adrian Lopez invested $55,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company in exchange for its common stock.

2 The company paid $3,300 cash for four months’ rent. (Hint: Debit Prepaid Rent for $3,300.)

3 The company purchased $1,420 of computer supplies on credit from Harris Office Products.

5 The company paid $2,220 cash for one year’s premium on a property and liability insurance policy. (Hint: Debit Prepaid Insurance for $2,220.)

6 The company billed Easy Leasing $24,800 for services performed in installing a new Web server.

8 The company paid $1,420 cash for the computer supplies purchased from Harris Office Products on Oct 3

10 The company hired Lyn Addie as a part-time assistant for $125 per day, as needed.

15 The company received $24,800 cash from Easy Leasing as payment on its account.

17 The company paid $805 cash to repair computer equipment that was damaged when moving it. 20 The company paid $1,940 cash for advertisements published in the local newspaper.

31 The company paid $875 cash for Lyn Addie's wages for seven days' work.

31 The company paid $3,600 cash in dividends.

November 2 The company received $4,633 cash from Liu Corporation for computer services performed.

5 The company purchased computer supplies for $1,125 cash from Harris Office Products.

31 The company paid $2,000 cash in dividends.

Dec.2 Paid $1,025 cash to Hillside Mall for Success Systems’ share of mall advertising costs.

3 Paid $500 cash for minor repairs to the company’s computer.

10 Paid cash to Lyn Addie for six days of work at the rate of $125 per day.

15 Purchased $1,100 of computer supplies on credit from Harris Office Products.

20 Completed a project for Liu Corporation and received $5,625 cash.

21 Received $1,500 Cash advance from a customer for computer service that will be performed next month

22- 26 Took the week off for the holidays.

31 The business paid $1,500 cash for dividends.

Record the following adjustments at year end:

•The December 31 inventory count of computer supplies shows $580 still available.

•Three months have expired since the 12-month insurance premium was paid in advance.

•As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.

•Total Depreciation expense for the computer equipment, acquired on October 1, is $1,250

•Total Depreciation expense for the office equipment, acquired on October 1, is $400

•Three of the four months’ prepaid rent has expired

Create income statement and balance sheet.

(I need to do this project through the Wave accounting software but an income statement and balance sheet would be great help)

Answer 1

Entries and income statement and balance sheet