ACCOUNTING

SP 5 Santana Rey created Business Solutions on October 1, 2011. 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, 2011. Santana Rey decided to add a fourth digit with a decimal point to the 106 account number that had been used for the single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts.

No. Account Title Debit Credit
101 Cash $ 48,532
106.1 Alex’s Engineering Co. 0
106.2 Wildcat Services 0
106.3 Easy Leasing 0
106.4 IFM Co. 3,090
106.5 Liu Corp. 0
106.6 Gomez Co. 2,678
106.7 Delta Co. 0
106.8 KC, Inc. 0
106.9 Dream, Inc. 0
119 Merchandise inventory 0
126 Computer supplies 700
128 Prepaid insurance 1,725
131 Prepaid rent 885
163 Office equipment 8,150
164 Accumulated depreciation—Office equipment $ 380
167 Computer equipment 21,100
168 Accumulated depreciation—Computer equipment 1,190
201 Accounts payable 1,250
210 Wages payable $ 540
236 Unearned computer services revenue 1,490
307 Common stock 74,810
318 Retained earnings 7,200
319 Dividends $ 0
403 Computer services revenue 0
413 Sales 0
414 Sales returns and allowances 0
415 Sales discounts 0
502 Cost of goods sold 0
612 Depreciation expense—Office equipment 0
613 Depreciation expense—Computer equipment 0
623 Wages expense 0
637 Insurance expense 0
640 Rent expense 0
652 Computer supplies expense 0
655 Advertising expense 0
676 Mileage expense 0
677 Miscellaneous expenses 0
684 Repairs expense—Computer 0

 

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