Required
1. Prepare journal entries to record each of the following transactions for Success Systems. Oct. 1 Lopez invested $55,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company in exchange for its common stock.
2 The company paid $3,300 cash for four months rent. (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 premium on a property and liability insurance policy. (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 $1,940 cash for an advertisement 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 wages for seven days work.
31 The company paid $3,600 cash for dividends.
Nov. 1 The Company reimbursed Lopez in cash for business automobile mileage allowance (Lopez 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 Engineering Co. that Success Systems bid of
$3,950 for an upcoming project is 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 name.
24 The company completed work for Alex Engineering Co. and sent it a bill for $3,950.
25 The company sent another bill to IFM Company for the past-due amount of $3,000.
28 The company reimbursed Lopez in cash for business automobile mileage (1,200 miles at $0.32 per mile).
30 The company paid $1,750 cash for Lyn Addie wages for 14 days work.
30 The company paid $2,000 cash for dividends.
2. Open ledger accounts (in balance column format) and post the journal entries from part 1 to them.
3. Prepare a trial balance as of the end of November.