Acc225 Fundamental Accounting Principles: Serial Problem 1 (SP1) On October 1, 2007, Adriana Lopez

Acc225 Fundamental Accounting Principles

Serial Problem 1 (SP 1) - Success Systems
On October 1, 2007, Adriana Lopez launched a computer services company, Success Systems, 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, 2007.

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 to show the effects of the October transactions for Success Systems on the individual items of the accounting equation. Show new balances after each transaction.
Oct. 1 Adriana Lopez invested $75,000 cash, a $25,000 computer system, and $10,000 of office equipment in the business.
3 Purchased $1,600 of computer supplies on credit from Corvina Office Products.
6 Billed Easy Leasing $6,200 for services performed in installing a new 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 performed.
15 Received $6,200 cash from Easy Leasing toward its account.
17 Paid $900 cash to repair computer equipment damaged when moving it.
20 Paid $1,790 cash for an advertisement in the local newspaper.
22 Received $1,950 cash from Easy Leasing toward its account.
28 Billed Clark Company $7,300 for services performed.
31 Paid $1,050 cash for Michelle Jones’s wages for seven days of work this month.
31 Lopez withdrew $4,000 cash for personal use.
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