Question

Question:(This serial problem started in Chapter 1 and continues through most of the chapters. If the Chapter 1 segment was not completed, the problem can begin at this point.)

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. Account No.

Cash ………………...................... 101 Common Stock ……………...... 307

Accounts Receivable ………….. 106 Dividends ………………………. 319

Computer Supplies …………….. 126 Computer Services Revenue ..403

Prepaid Insurance ……………….128 Wages Expense ………………. 623

Prepaid Rent ………………………131 Advertising Expense ………….655

Office Equipment ……………….. 163 Mileage Expense ……………… 676

Computer Equipment ……………167 Miscellaneous Expenses ……. 677

Accounts Payable ………………..201 Repairs Expense—Computer ..684

Required

2. Open ledger accounts (in balance column format) and post the journal entries from part 1 to them.

Short answer

Answer

The total of cash account balance amounts to $36,264.

Step-by-step solution

General Ledger (part 1)

Cash Account No. 101
Date	PR	Debit	Credit	Balance
Oct 1	G1	$ 45,000		$ 45,000
2	G1		$ 3,300	41,700
5	G1		2,220	39,480
8	G1		1,420	38,060
15	G2	4,800		42,860
17	G2		805	42,055
20	G2		1,728	40,327
22	G2	1,400		41,727
31	G2		875	40,852
31	G2		3,600	37,252
Nov 1	G3		320	36,932
2	G3	4,633		41,565
5	G3		1,125	40,440
18	G3	2,208		42,648
22	G3		250	42,398
28	G4		384	42,014
30	G4		1,750	40,264
30	G4		2,000	38,264

Accounts Receivables Account No. 106
Date	PR	Debit	Credit	Balance
Oct 6	G1	$ 4,800		$ 4,800
12	G2	1,400		6,200
15	G2		$ 4,800	1,400
22	G2		1,400	0
28	G2	5,208		5,208
Nov 8	G3	5,668		10,876
18	G3		2,208	8,668
24	G3	3,950		12,618

Computer Supplies Account No. 126
Date	PR	Debit	Credit	Balance
Oct 3	G1	$ 1,420		$ 1,420
Nov 5	G3	1,125		2,545

General Ledger (part 2)

Prepaid Insurance Account No. 128
Date	PR	Debit	Credit	Balance
Oct 5	G1	$ 2,220		$ 2,220

Prepaid Rent Account No. 131
Date	PR	Debit	Credit	Balance
Oct 2	G1	$ 3,300		$ 3,300

Office Equipment Account No. 163
Date	PR	Debit	Credit	Balance
Oct 1	G1	$ 8,000		$ 8,000

Computer Equipment Account No. 167
Date	PR	Debit	Credit	Balance
Oct 1	G1	$ 20,000		$ 20,000

Accounts Payable Account No. 201
Date	PR	Debit	Credit	Balance
Oct 3	G1		$ 1,420	$ 1,420
8	G1	$ 1,420

Common Stock Account No. 307
Date	PR	Debit	Credit	Balance
Oct 1	G1		$ 73,000	$ 73,000

General Ledger (part 3)

Dividends Account No. 319
Date	PR	Debit	Credit	Balance
Oct 31	G2	$ 3,600		$ 3,600
Nov 30	G3	2,000		5,600

Computer Service Revenues Account No. 403
Date	PR	Debit	Credit	Balance
Oct 6	G1		$ 4,800	$ 4,800
12	G1		1,400	5,200
28	G1		5,208	10,408
Nov 2	G3		4,633	15,041
8	G3		5,668	20,709
24	G3		3,950	25,659

Wages Expenses Account No. 623
Date	PR	Debit	Credit	Balance
Oct 31	G2	$ 875		$ 875
Nov	G4	1,750		2,625

Advertising Expenses Account No. 655
Date	PR	Debit	Credit	Balance
Oct 20	G2	$ 1,728		$ 1,728

Mileage Expenses Account No. 676
Date	PR	Debit	Credit	Balance
Nov 1	G3	$ 320		$ 320
28	G4	384		704

 General Ledger (part 4)

Miscellaneous Expenses Account No. 677
Date	PR	Debit	Credit	Balance
Nov 22	G2	$ 250		$ 250

Repair Expenses - Computer Account No. 684
Date	PR	Debit	Credit	Balance
Oct 17	G2	$ 805		$ 805