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Assignment type : Term paper
Format MLA

Volume of 1 page (275 words)
Description
Serial Problem; part 1 only (pp. 92-93 of the textbook, and reproduced below)

Individually complete any four (4) consecutive journal entries. Each journal entry should be in good form and should include the date, the account titles, the debit and credit amounts, and a brief description.
Type or paste your journal entries directly into the discussion forum. No attachments, please.
Your team will not journalize all of the transactions in the problem; teams with 4 active members will complete a total of 16 journal entries, teams with 3 active members will complete a total of 12 entries, etc.
IMPORTANT INSTRUCTIONS:

1. Navigate to your Group Homepage and use your Group’s Announcement tool to decide among your teammates who will complete which journal entries.

2. Post your selected journal entries in your group’s Discussion forum.

3. For full credit, be sure to provide constructive comments on at least two of your teammates’ posts. Comments may be posted up to 24 hours after the problem submission deadline.

Serial Problem

SP 2 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.
Cash 101
Accounts Receivable 106
Computer Supplies 126
Prepaid Insurance 128
Prepaid Rent 131
Office Equipment 163
Computer Equipment 167
Accounts Payable 201
S. Rey, Capital 301
S. Rey, Withdrawals 302
Computer Services Revenue 403
Wages Expense 623
Advertising Expense 655
Mileage Expense 676
Miscellaneous Expenses 677
Repairs Expense—Computer 684
Required

Prepare journal entries to record each of the following transactions for Business Solutions.
Oct. 1 S. Rey invested $45,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company.
2 The company paid $3,300 cash for four months’ rent. (Hint: Debit Prepaid Rent for $3,300.)
3 The company purchased $1,420 of computer supplies on credit from Harris Office Products.
5 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.)
6 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 $1,728 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.
31 The company paid $875 cash for Lyn Addie’s wages for seven days’ work.
31 S. Rey withdrew $3,600 cash from the company for personal use.
Nov. 1 The company reimbursed S. Rey in cash for business automobile mileage allowance (Rey 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 Business Solutions’s bid of $3,950 for an upcoming project was 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.
24 The company completed work and sent a bill for $3,950 to Alex’s Engineering Co.
25 The company sent another bill to IFM Company for the past-due amount of $3,000.
28 The company reimbursed S. Rey in cash for business automobile mileage (1,200 miles at $0.32 per mile).
30 The company paid $1,750 cash for Lyn Addie’s wages for 14 days’ work.
30 S. Rey withdrew $2,000 cash from the company for personal use.

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