Question

In: Accounting

On October 1, 2016, Adria Lopez launched a computer services company called Success Systems, which provides...

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!

Solutions

Expert Solution

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

Related Solutions

On October 1, 2013, Adrian Lopez launched a computer services company, Success Systems, which is organized...
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...
Adria Lopez created Success Systems on October 1, 2013. The company has been successful, and its...
Adria Lopez created Success Systems on October 1, 2013. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2013. Adria Lopez decided to add a fourth digit with a decimal point to the 106 account number that had been used...
SP 4 Adria Lopez created Success Systems on October 1, 2013. The company has been successful,...
SP 4 Adria Lopez created Success Systems on October 1, 2013. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2013. Adria Lopez decided to add a fourth digit with a decimal point to the 106 account number that had...
On October 1, 2017, Santana Rey launched a computer services company called Business Solutions, which provides...
On October 1, 2017, Santana Rey launched a computer services company called Business Solutions, which 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. The company’s initial chart of accounts 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...
On October 1, 2019, Santana Rey launched a computer services company called Business Solutions, which provides...
On October 1, 2019, Santana Rey launched a computer services company called Business Solutions, which 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. The company’s initial chart of accounts 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...
Adria Lopez, owner of Success Systems, realizes that she needs to begin accounting for bad debts...
Adria Lopez, owner of Success Systems, realizes that she needs to begin accounting for bad debts expense. Assume that Success Systems has total revenues of $64,000 during the first three months of 2014, and that the Accounts Receivable balance on March 31, 2014, is $22,317. Prepare the adjusting entry needed for Success Systems to recognize bad debts expense, which are estimated to be 2% of accounts receivable on March 31, 2014 (assume a zero unadjusted balance in the Allowance for...
On October 1, 2018, Santana Rey launched a computer services company, Business Solutions, that is organized...
On October 1, 2018, Santana Rey launched a computer services company, Business Solutions, that is organized as a corporation and provides consulting services, computer system installations, and custom program development. Rey uses the calendar year for reporting purposes and expects to prepare the company’s first set of financial statements on December 31, 2018. Oct. 1 S. Rey invested $48,000 cash, a $27,000 computer system, and $8,500 of office equipment in the company in exchange for its common stock. 3 The...
On October 1, 2017, Santana Rey launched a computer services company, Business Solutions, that is organized...
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...
Accounting 2140 – Comprehensive Problem On October 1, 2019, Santana Rey launched a computer services company...
Accounting 2140 – Comprehensive Problem On October 1, 2019, Santana Rey launched a computer services company called Business Solutions, which 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, 2019. After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting...
On October 1, 2016, Ball Company issued 10% bonds dated October 1, 2016, with a face...
On October 1, 2016, Ball Company issued 10% bonds dated October 1, 2016, with a face amount of $350,000. The bonds mature in 8 years. Interest is paid semiannually on March 31 and September 30. The proceeds from the bond issuance were $355,751.07 to yield 9.70%. Ball Company has a December 31 fiscal year-end and does not use reversing entries. Required: 1. Prepare journal entries to record the issuance of the bonds and the interest payments for 2016 and 2017...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT