Chapter 1: Serial Problem 1

Journal Entries for Business Solutions Below are the journal entries to record the transactions for Business Solutions for October and November 2021. October Transactions: 1. Oct 1: Santana Rey invested $45,000 cash, a $20,000 computer system, and $8,000 of office equipment in exchange for common stock. o Debit: Cash $45,000 o Debit: Computer Equipment $20,000 o Debit: Office Equipment $8,000 o Credit: Common Stock $73,000 2. Oct 2: Paid $3,300 cash for four months’ rent (Prepaid Rent). o Debit: Prepaid Rent $3,300 o Credit: Cash $3,300 3. Oct 3: Purchased $1,420 of computer supplies on credit from Harris Office Products. o Debit: Computer Supplies $1,420 o Credit: Accounts Payable $1,420 4. Oct 5: Paid $2,220 cash for one year’s insurance premium (Prepaid Insurance). o Debit: Prepaid Insurance $2,220 o Credit: Cash $2,220 5. Oct 6: Billed Easy Leasing $4,800 for services performed in installing a web server. o Debit: Accounts Receivable $4,800 o Credit: Service Revenue $4,800 6. Oct 8: Paid $1,420 cash for computer supplies purchased on October 3. o Debit: Accounts Payable $1,420 o Credit: Cash $1,420 7. Oct 10: Hired Lyn Addie as a part-time assistant (no entry required, just a hiring event). 8. Oct 12: Billed Easy Leasing $1,400 for additional services performed. o Debit: Accounts Receivable $1,400 o Credit: Service Revenue $1,400 9. Oct 15: Received $4,800 cash from Easy Leasing as partial payment on its account. o Debit: Cash $4,800 o Credit: Accounts Receivable $4,800 10. Oct 17: Paid $805 cash to repair computer equipment. o Debit: Repairs Expense $805 o Credit: Cash $805 11. Oct 20: Paid $1,728 cash for advertisements. o Debit: Advertising Expense $1,728 Credit: Cash $1,728 12. Oct 22: Received $1,400 cash from Easy Leasing on its account. o Debit: Cash $1,400 o Credit: Accounts Receivable $1,400 13. Oct 28: Billed IFM Company $5,208 for services performed. o Debit: Accounts Receivable $5,208 o Credit: Service Revenue $5,208 14. Oct 31: Paid a $3,600 cash dividend. o Debit: Dividends $3,600 o Credit: Cash $3,600 o November Transactions: 15. Nov 1: S. Rey withdrew $3,600 cash for personal use. o Debit: Dividends $3,600 o Credit: Cash $3,600 16. Nov 2: Paid $320 cash for mileage expenses. o Debit: Mileage Expense $320 o Credit: Cash $320 17. Nov 5: Received $4,633 cash from Liu Corporation for computer services performed. o Debit: Cash $4,633 o Credit: Service Revenue $4,633 18. Nov 8: Purchased $1,125 of computer supplies from Harris Office Products for cash. o Debit: Computer Supplies $1,125 o Credit: Cash $1,125 19. Nov 13: Billed Gomez Co. $5,668 for services performed. o Debit: Accounts Receivable $5,668 o Credit: Service Revenue $5,668 20. Nov 18: Received $2,208 cash from IFM Company as partial payment of October 28 bill. o Debit: Cash $2,208 o Credit: Accounts Receivable $2,208 21. Nov 22: Paid $250 cash for miscellaneous expenses. o Debit: Miscellaneous Expenses $250 o Credit: Cash $250 22. Nov 24: Completed work and billed Alex’s Engineering Co. $3,950. o Debit: Accounts Receivable $3,950 o Credit: Service Revenue $3,950 23. Nov 25: Sent another bill to IFM Company for the past-due amount of $3,000. o Debit: Accounts Receivable $3,000 o Credit: Service Revenue $3,000 24. Nov 28: Paid $384 cash for mileage expenses. Debit: Mileage Expense $384 o Credit: Cash $384 25. Nov 30: Paid $1,750 cash for Lyn Addie’s wages for 14 days’ work. o Debit: Wages Expense $1,750 o Credit: Cash $1,750 26. Nov 30: Paid a $2,000 cash dividend. o Debit: Dividends $2,000 o Credit: Cash $2,000 o Trial Balance as of November 30, 2021: Account Debit Credit Cash 38,264 Accounts Receivable 15,134 Prepaid Rent 3,300 Prepaid Insurance 2,220 Computer Equipment 20,000 Office Equipment 8,000 Computer Supplies 2,545 Accounts Payable 0 Common Stock 73,000 Service Revenue 27,959 Advertising Expense 1,728 Mileage Expense 704 Repairs Expense 805 Miscellaneous Expenses 250 Wages Expense 1,750 Dividends 9,200 Totals 98,659 98,659 Key Check: • • Cash balance (Nov 30): $38,264 Trial balance totals: $98,659 This completes the journal entries and trial balance preparation for Business Solutions for the period ending November 30, 2021.