Question

On October 1, 2017, Aster Turane organized a computer service company called Aster
Systems.Aster is organized as a sole proprietorship and will provide consulting services, computer
system installations, and custom program development.Aster Systems has adopted the calendar year
for reporting, and expects to prepare the company's first set of financial statements as of
December 31, 2017.The initial chart of accounts for the accounting system includes these items:
Account Number	Account Name	Account Number	Account Name
101	Cash	301	Aster Turane, Capital
106	Accounts Receivable	302	Aster Turane, Withdrawals
126	Computer Supplies	403	Computer Services Revenue
128	Prepaid Insurance	623	Wages Expense
131	Prepaid Rent	655	Advertising Expense
163	Office Equipment	676	Mileage Expense
167	Computer Equipment	684	Repairs Expense, Computer
201	Accounts Payable	699	Charitable Donations Expense
Required (You can use format in the tabs for your solution)
1. Prepare T accounts for each account and show account balance.
2.Prepare journal entries to record each of the following October transactions.
3.Prepare a trial balance at October 31, 2017.
4.Prepare financial statements including an income statement, a statement of changes in equity for the month ended
October 31, 2017, as well as a balance sheet at October 31, 2017.
Oct.1	Aster Turane invested $32,000 cash, a $5,040 computer system, and
	$12,000 of office equipment in the business.
2	Paid six months of rent in advance; $9,300.
3	Purchased computer supplies on credit for $1,975 from Triple-One Supplies.
5	Paid $8,640 cash for one year's premium on a property and liability insurance
	policy.
6	Billed Norton Electric $3,300 for installing a new computer system.
8	Paid for the computer supplies purchased from Triple-One Supplies.
10	Hired Donald Gee as a part-time assistant for $345 per day, as needed.
12	Billed Norton Electric another $1,850 for computer services rendered.
15	Received $1,650 from Norton Electric on its account.
17	Paid $375 to repair equipment damaged when moving into the
	new office.
20	Paid $1,950 for an advertisement in the local newspaper.
22	Received the balance owing from Norton Electric on its account.
28	Billed Whistler Resort $6,400 for services.
31	Paid Donald Gee for nine days' work.
31	Aster Turane withdrew $1,200 cash from the business for personal use.

Answer 1