GROUP ASSIGNMENT Problem 1 On October 1, 2018, Adriana Lopez launched a computers ervices company called Success Systems, which 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, 2018. 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 1. Prepare journal entries to record each of the following transactions for Success Systems. Oct 1 Lopez invested $75,000 cash, a $25,000 computer system, and $10,000 of office equipment in the business in exchange for a common stock. 2 Paid $3,500 cash for four months’ rent. (Hint: Debit Prepaid Rent for $3,500.) 3 Purchased $1,600 of computer supplies on credit from Corvina Office Products. 5 Paid $2,400 cash one year’s premium on a property and liability insurance policy. (Hint: Debit Prepaid Insurance for $2,400.) 6 Billed Easy Leasing $6,200 for services performed in installing a Web server. 8 Paid $1,600 cash for the computer supplies purchased from Corvina Office Products on October 3. 10 Hired Michelle Jones as a part-time assistant for $150 per day, as needed. 12 Billed Easy Leasing another $1,950 for services provided. 15 Received $6,200 cash from Easy Leasing on its account. 17 Paid $900 cash to repair computer equipment that was damaged when moving it. 20 Paid $1,790 cash for an advertisement in the local newspaper
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