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On October 1, 2013, Adria Lopez launched a computer services company, Success System that is organized as a proprietorship and provides consulting services, computer system installations, and custom program development. Lopez adopts the calendar year for reporting purposes and expects to prepare the company’s first set of financial statements
on December 31, 2013.
Required
Create a table like the one in Exhibit 1.9 using the following headings for columns: Cash; Accounts Receivable; Computer Supplies; Computer System; Office Equipment; Accounts Payable; A. Lopez, Capital; A. Lopez, Withdrawals; Revenues; and Expenses. Then use additions and subtractions within the table created to show the dollar effects for each of the following October transactions for Success Systems on the individual items of the accounting equation. Show new balances after each transaction.
Oct. 1 A. Lopez invested $55,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company.
3 The company purchased $1,420 of computer supplies on credit from Harris Office Products.
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 toward its account.
17 The company paid $805 cash to repair computer equipment damaged when moving it.
20 The company paid $1,940 cash for advertisements published in the local newspaper.
22 The company received $1,400 cash from Easy Leasing toward 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 of work this month.
31 A. Lopez withdrew $3,600 cash from the company for personal use.
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