Question

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 credit from Harris Office Products.
		6		The company billed Easy Leasing $5,400 for services performed in installing a new web server.
		8		The company paid $1,400 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 $140 per day, as needed.
		12		The company billed Easy Leasing another $2,000 for services performed.
		15		The company received $5,400 cash from Easy Leasing as partial payment toward its account.
		17		The company paid $750 cash to repair computer equipment damaged when moving it.
		20		The company paid $1,648 cash for advertisements published in the local newspaper.
		22		The company received $2,000 cash from Easy Leasing toward its account.
		28		The company billed IFM Company $5,303 for services performed.
		31		The company paid $980 cash for Lyn Addie’s wages for seven days of work this month.
		31		S. Rey withdrew $3,400 cash from the company for personal use.

Required:
Enter the amount of each transaction on individual items of the accounting equation. Show new balances after each transaction. (Enter decreases to account balances with a minus sign. Enter as per the transaction order provided in the question data.)

Answer 1

	Assets										Liabilities		Owners equity
Date	Cash	+	Accounts	+	Supplies	+	Equipment	+	Furniture	=	Accounts	+	Rey's	+	Revenue	-	Expense
			receivable								Payable		Capital
01-Oct	50000						24000		12000				86000
03-Oct					1400						1400
Bal	50000		0		1400		24000		12000		1400		86000		0		0
Oct-06			5400												5400
Bal	50000		5400		1400		24000		12000		1400		86000		5400		0
Oct-08	-1400										-1400
Bal	48600		5400		1400		24000		12000		0		86000		5400		0
Oct-12			2000												2000
Bal	48600		7400		1400		24000		12000		0		86000		7400		0
Oct-15	5400		-5400
Bal	54000		2000		1400		24000		12000		0		86000		7400		0
Oct-17	-750																-750
Bal	53250		2000		1400		24000		12000		0		86000		7400		-750
Oct-20	-1648																-1648
Bal	51602		2000		1400		24000		12000		0		86000		7400		-2398
Oct-22	2000		-2000
Bal	53602		0		1400		24000		12000		0		86000		7400		-2398
Oct-28			5303												5303
Bal	53602		5303		1400		24000		12000		0		86000		12703		-2398
Oct-31	-980																-980
Bal	52622		5303		1400		24000		12000		0		86000		12703		-3378
Oct-31	-3400												-3400
Bal	49222	+	5303	+	1400	+	24000	+	12000	=	0	+	82600	+	12703	-	-3378