In: Accounting
On October 1, 2016, Adria Lopez launched a computer services company called Success Systems, which provides consulting services, computer system installations, and custom program development. Adria adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2016. The company's initial chart of accounts and transactions follows. Account No. Account No. Cash 101 Common Stock 307 Accounts Receivable 106 Dividends 319 Computer Supplies 126 Computer Services Revenue 403 Prepaid Insurance 128 Wages Expense 623 Prepaid Rent 131 Advertising Expense 655 Office Equipment 163 Mileage Expense 676 Computer Equipment 167 Miscellaneous Expenses 677 Accounts Payable 201 Repairs Expense - Computer 684 Oct. 1 Adria 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. The company paid $3,300 cash for four months' rent. (Hint: Debit Prepaid Rent for $3,300.) The company purchased $1,420 of computer supplies on credit from Harris Office Products. 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.) The company billed Easy leasing $4,800 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 October 3. 10 The company hired Lyn Addie as a part-time assistant for $125 per day, as needed. 12 The company billed Easy leasing another $1,400 for services performed. 15 The company received $4,800 cash from Easy Leasing as partial 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. 22 The company received $1,400 cash from Easy Leasing on its account. 28 The company billed IFM Company $5,208 for services performed. 31a The Company paid $875 cash for Lyn Addie's wages for seven days' work. 31b The Company paid $3,600 cash in dividends. Nov. 1 The Company reimbursed Adria Lopez in cash for business automobile mileage allowance (Lopez logged 1,000 miles at $0.32 per mile). 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. 8 The company billed Gomez Co. $5,668 for services performed. 13 The company received notification from Alex's Engineering Co. that Success Systems' bid of $3,950 for an upcoming project is accepted. 18 The company received $2,208 cash from IFM Company as partial payment of the October 28 bill. 22 The company donated $250 cash to the United Way in the company's name. The company completed work for Alex's Engineering Co. and sent it a bill for $3,950. The company sent another bill to IFM Company for the past-due amount of $3,000. 28 The company reimbursed Adria Lopez in cash for business automobile mileage (1,200 miles at $0.32 per mile). 30a The Company paid $1,750 cash for Lyn Addie's wages for 14 days' work. 30b The Company paid $2,000 cash in dividends. Required: Using Micro Soft Excel and Word: Prepare journal entries to record each of the above transactions for Success Systems. (If no entry is required for a particular transaction, select "No journal entry required” in the first account field.) Post the journal entries to ledger accounts. (Add additional ledger accounts when necessary.) Prepare a trial balance as of the end of November. (Trial Balance total $ 108,659) (Be sure to show formulas in your worksheets.) This question has been posted but the answer is wrong please review and help thanks I found the mistake in the answer the 11/2 transaction shoud be cash debit revenue credit your welcome!
In the books of Success Systems :
Date | Account Titles | Debit | Credit |
$ | $ | ||
Oct 1 | Cash | 55,000 | |
Computer Equipment | 20,000 | ||
Office Equipment | 8,000 | ||
Common Stock | 83,000 | ||
Oct 1 | Prepaid Rent | 3,300 | |
Cash | 3,300 | ||
Oct 3 | Computer Supplies | 1,420 | |
Accounts Payable | 1,420 | ||
Oct 3 | Prepaid Insurance | 2,220 | |
Cash | 2,220 | ||
Oct 3 | Accounts Receivable | 4,800 | |
Computer Services Revenue | 4,800 | ||
Oct 8 | Accounts Payable | 1,420 | |
Cash | 1,420 | ||
Oct 10 | No journal entry required | ||
Oct 12 | Accounts Receivable | 1,400 | |
Computer Services Revenue | 1,400 | ||
Oct 15 | Cash | 4,800 | |
Accounts Receivable | 4,800 | ||
Oct 17 | Repairs Expense ; Computer | 805 | |
Cash | 805 | ||
Oct 20 | Advertising Expense | 1,940 | |
Cash | 1,940 | ||
Oct 22 | Cash | 1,400 | |
Accounts Receivable | 1,400 | ||
Oct 28 | Accounts Receivable | 5,208 | |
Computer Services Revenue | 5,208 | ||
Oct 31 a. | Wages Expense | 875 | |
Cash | 875 | ||
Oct 31 b. | Dividends | 3,600 | |
Cash | 3,600 | ||
Nov 1 | Mileage Expense | 320 | |
Cash | 320 | ||
Nov 2 | Cash | 4,633 | |
Computer Services Revenue | 4,633 | ||
Nov 5 | Computer Supplies | 1,125 | |
Cash | 1,125 | ||
Nov 8 | Accounts Receivable | 5,668 | |
Computer Services Revenue | 5,668 | ||
Nov 13 | No journal entry required | ||
Nov 18 | Cash | 2,208 | |
Accounts Receivable | 2,208 | ||
Nov 22 | Miscellaneous Expense | 250 | |
Cash | 250 | ||
Nov 22 | Accounts Receivable | 3,950 | |
Computer Services Revenue | 3,950 | ||
Nov 22 | No entry required | ||
Nov 28 | Mileage Expense | 384 | |
Cash | 384 | ||
Nov 30a | Wages Expense | 1,750 | |
Cash | 1,750 | ||
Nov 30b | Dividends | 2,000 | |
Cash | 2,000 |
Success Systems
Unadjusted Trial Balance
November 30
Accounts | Debit | Credit |
$ | $ | |
Cash | 48,052 | |
Accounts Receivable | 12,618 | |
Computer Supplies | 2,545 | |
Prepaid Rent | 3,300 | |
Prepaid Insurance | 2,220 | |
Computer Equipment | 20,000 | |
Office Equipment | 8,000 | |
Accounts Payable | 0 | |
Common Stock | 83,000 | |
Dividends | 5,600 | |
Computer Services Revenue | 25,659 | |
Wages Expense | 2,625 | |
Advertising Expense | 1,940 | |
Repairs Expense: Computer | 805 | |
Mileage Expense | 704 | |
Miscellaneous Expense | 250 | |
Totals | 108,659 | 108,659 |