Accounting Principles

Accounting Principles

On October 1, 2011, 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, 2011.
Oct. 1 S. Rey invested $46,000 cash, a $24,000 computer system, and $8,500 of office equipment in the company. 3 The company purchased $1,440 of computer supplies on credit from Harris Office Products. 6 The company billed Easy Leasing $5,100 for services performed in installing a new Web server. 8 The company paid $1,440 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 $150 per day, as needed (paid weekly). 12 The company billed Easy Leasing another $1,700 for services performed. 15 The company received $5,100 cash from Easy Leasing as partial payment toward its account. 17 The company paid $800 cash to repair computer equipment damaged when moving it. 20 The company paid $1,688 cash for advertisements published in the local newspaper. 22 The company received $1,700 cash from Easy Leasing toward its account. 28 The company billed IFM Company $5,223 for services performed. 31 The company paid $1,050 cash for Lyn Addie’s wages for seven days of work this month. 31 S. Rey withdrew $3,000 cash from the company for personal use.
Required:
Enter the amount of each transaction on individual items of the accounting equation. Show new balances after each transaction. (Leave no cells blank – be certain to enter “0” wherever required. Amounts to be deducted, withdrawals and expenses should be indicated with a minus sign. Omit the “$” sign in your response.

Is this the question you were looking for? If so, place your order here to get started!