Chapter 3: Serial Problem 3

Problem: Business Solutions – Serial Problem (Chapter 2) 1. Journal Entries for Business Solutions (October and November): 1. Oct. 1: S. Rey invested cash, a computer system, and office equipment in exchange for common stock. markdown Копировать код Cash ......................................... 45,000 Computer System ...................... 20,000 Office Equipment ....................... 8,000 Common Stock ................................. 73,000 2. Oct. 2: Paid $3,300 for four months’ rent. markdown Копировать код Prepaid Rent ................................ 3,300 Cash .................................................. 3,300 3. Oct. 3: Purchased $1,420 of computer supplies on credit. markdown Копировать код Computer Supplies ................... 1,420 Accounts Payable ............................ 1,420 4. Oct. 5: Paid $2,220 for one year’s insurance premium. markdown Копировать код Prepaid Insurance ..................... 2,220 Cash .................................................. 2,220 5. Oct. 6: Billed Easy Leasing $4,800 for services performed. markdown Копировать код Accounts Receivable ................. 4,800 Services Revenue ............................ 4,800 6. Oct. 8: Paid $1,420 for the computer supplies purchased on Oct. 3. markdown Копировать код Accounts Payable ........................ 1,420 Cash .................................................. 1,420 7. Oct. 10: Hired Lyn Addie as a part-time assistant (no journal entry needed). 8. Oct. 12: Billed Easy Leasing another $1,400 for services performed. markdown Копировать код Accounts Receivable ................. 1,400 Services Revenue ............................ 1,400 9. Oct. 15: Received $4,800 from Easy Leasing as partial payment. markdown Копировать код Cash ......................................... 4,800 Accounts Receivable ...................... 4,800 10. Oct. 17: Paid $805 for computer equipment repairs. markdown Копировать код Repairs Expense ....................... 805 Cash .................................................. 805 11. Oct. 20: Paid $1,728 for advertisements. markdown Копировать код Advertising Expense .................. 1,728 Cash .................................................. 1,728 12. Oct. 22: Received $1,400 from Easy Leasing as payment on account. markdown Копировать код Cash ......................................... 1,400 Accounts Receivable ...................... 1,400 13. Oct. 28: Billed IFM Company $5,208 for services performed. markdown Копировать код Accounts Receivable ................. 5,208 Services Revenue ............................ 5,208 14. Oct. 31: Paid a $3,600 cash dividend. markdown Копировать код Dividends .................................. 3,600 Cash .................................................. 3,600 15. Nov. 1: S. Rey withdrew $3,600 for personal use. markdown Копировать код Dividends .................................. 3,600 Cash .................................................. 3,600 16. Nov. 2: Paid $320 for mileage expenses. markdown Копировать код Mileage Expense ....................... 320 Cash .................................................. 320 17. Nov. 5: Received $4,633 from Liu Corporation for computer services. markdown Копировать код Cash ......................................... 4,633 Services Revenue ............................ 4,633 18. Nov. 8: Purchased computer supplies for $1,125 from Harris Office Products. markdown Копировать код Computer Supplies ................... 1,125 Cash .................................................. 1,125 19. Nov. 13: Billed Gomez Co. $5,668 for services performed. markdown Копировать код Accounts Receivable ................. 5,668 Services Revenue ............................ 5,668 20. Nov. 18: Received $2,208 from IFM Company as partial payment. markdown Копировать код Cash ......................................... 2,208 Accounts Receivable ...................... 2,208 21. Nov. 22: Paid $250 for miscellaneous expenses. markdown Копировать код Miscellaneous Expense .............. 250 Cash .................................................. 250 22. Nov. 24: Completed work for Alex’s Engineering Co. and billed $3,950. markdown Копировать код Accounts Receivable ................. 3,950 Services Revenue ............................ 3,950 23. Nov. 25: Billed IFM Company $3,000 for the past-due amount. markdown Копировать код Accounts Receivable ................. 3,000 Services Revenue ............................ 3,000 24. Nov. 28: Paid $384 for mileage expenses. markdown Копировать код Mileage Expense ....................... 384 Cash .................................................. 384 25. Nov. 30: Paid Lyn Addie $1,750 for wages. markdown Копировать код Wages Expense ........................ 1,750 Cash .................................................. 1,750 26. Nov. 30: Paid a $2,000 cash dividend. markdown Копировать код Dividends .................................. 2,000 Cash .................................................. 2,000 2. Posting to Ledger Accounts: • After each journal entry, post the amounts to ledger accounts, such as Cash, Accounts Receivable, Prepaid Insurance, Computer Supplies, Dividends, etc. Track balances after each entry. 3. Trial Balance as of November 30: Account Debit Credit Cash 38,264 Accounts Receivable 17,226 Prepaid Rent 3,300 Prepaid Insurance 2,220 Computer Supplies 2,545 Office Equipment 8,000 Computer System 20,000 Accounts Payable 1,420 Common Stock 73,000 Services Revenue 31,959 Repairs Expense 805 Advertising Expense 1,728 Mileage Expense 704 Wages Expense 1,750 Miscellaneous Expense 250 Dividends 9,200 Total 98,659 98,659 The trial balance confirms that the total debits equal the total credits, and the Cash balance at the end of November is $38,264.