prepare the company’s first set of financial statements on December 31, 2008.
Requirement 1:

Prepare journal entries to record each of the following transactions for Success Systems.

Transaction
Date
OCT
1 Lopez invested $75,000 cash, a $25,000 computer system, and $10,000 of office equipment in the business.
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 for 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 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 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.
22 Received $1,950 cash from Easy Leasing on its account.
28 Billed Clark Company $7,300 for services performed.
31 Paid $1,050 cash for Michelle Jones’s wages for seven days’ work.
31 Lopez withdrew $4,000 cash for personal use.

Transaction
Date
Nov.
1 Reimbursed Lopez in cash for business automobile mileage allowance (Lopez logged 1,200 miles at $0.32 per mile).
2 Received $3,600 cash from Edge Corporation for computer services performed.
5 Purchased computer supplies for $1,750 cash from Corvina Office Products.
8 Billed Gomez Co. $6,500 for services performed.
13 Received notification from Alex’s Engineering Co. that Success Systems’ bid of $7,000 for an upcoming project is accepted.
18 Received $5,000 cash from Clark Company as partial payment of the October 28 bill.
22 Donated $300 cash to the United Way in the company’s name.
24 Completed work for Alex’s Engineering Co. and sent it a bill for $7,000.
25 Sent another bill to Clark Company for the past-due amount of $2,300.
28 Reimbursed Lopez in cash for business automobile mileage (1,500 miles at $0.32 per mile).
30 Paid $2,100 cash for Michelle Jones’s wages for 14 days’ work.
30 Lopez withdrew $2,500 cash for personal use.


Requirement 2:

Post journal entries to the subsidiary ledger accounts.

Requirement 3:

Prepare a trial balance as of the end of November 2008.

Requirement 4:

Prepare journal entries to record each of the December transactions and events for Success Systems as follows:

Transaction
Date
Dec
2 Paid $1,200 cash to Hilldale Mall for Success Systems’ share of mall advertising costs.
3 Paid $500 cash for minor repairs to the company’s computer.
4 Received $7,000 cash from Alex’s Engineering Co. for the receivable from November.
10 Paid cash to Michelle Jones for six days of work at the rate of $150 per day.
14 Notified by Alex ‘s Engineering Co. that Success Systems bid of $9,000 on a proposed project has been accepted.. Alex’s paid a $2,500 cash advance to Success Systems.
15 Purchased $2,100 of computer supplies on credit from Cain Office Products.
16 Sent a reminder to Gomez Co. to pay the fee for services recoded on November 8.
20 Completed a project for Chang Corporation and received $3,620 cash.
Took the week off for the holidays.
28 Received $3,000 cash from Gomez Co. on its receivable.
29 Reimbursed Lopez’s business automobile mileage (800 miles at $0.32 per mile).
31 Lopez withdrew $2,000 cash for personal use.

Requirement 5:

Post journal entries to the subsidiary ledger accounts.

Requirement 6:

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:

1. The December 31 inventory count of computer supplies shows $775 still available.
2. Three months have expired since the 12-month insurance premium was paid in advance.
3. As of December 31, Michelle Jones has not been paid for four days of work at $150 per day.
4. The company’s computer is expected to have a five-year life with no salvage
value – Accumulated Depreciation for this period is $1,250.
5. The office equipment is expected to have a four-year life with no salvage value – Accumulated Depreciation for this period is $625.
6. Three of the four month’s prepaid rent has expired.

Prepare adjusting entries for the above, journalize the necessary adjusting entries, post these journal entries to the subsidiary accounts.

Requirement 7:

Prepare an adjusted trial balance as of December 31, 2008.

Requirement 8:

Prepare the following financial statements for Success Systems for the period ending December 31, 2008:

Income Statement
Statement of Owner’s Equity
Balance sheet.

Requirement 9:

Journalize and post the necessary closing entries for Success Systems at December 31, 2008.

Requirement 10:

Prepare a post-closing trial balance as of December 31, 2008.


Requirement 11:

Adriana Lopez, receives the December back statement for Success Systems on
January 11, 2009. The December 31, 2007 bank statement shows an ending cash balance of $ 79,890.00. A comparison of the bank statement with the general ledger Cash Account, No. 101, reveals the following:

Lopez notices that the bank erroneously cleared a $470 check against her account that she did not issue. The check documentation included with the bank statement shows that this check was actually issued by a company named Sierra Systems.
On December 24, the bank issued a $50 debit memorandum for the safety deposit box that Success Systems agreed to rent from the bank beginning December 25.
On December 26, the bank issued a $75 debit memorandum for printed checks that Success System ordered from the bank.
On December 26, the bank issued a credit memorandum for $33 interest earned on Success System’s checking account for the month of December.
Lopez notices that the check she issued for $192 on December 31, 2008 has not yet cleared the bank.
Lopez verifies that the deposits made in December do appear on the December statement.
The general ledger Cash account 101, shows an ending balance per books as $80,260.00 (prior to any reconciliation).

Prepare a bank reconciliation for Success Systems for the month ended December 31, 2008.

Requirement 12:

Prepare any necessary adjusting entries. Use Miscellaneous Expenses, No. 677, for any bank charges. Use Interest Revenue, No. 404, for any interest earned on the checking account for the month of December.

Thank you for taking the time to copy your homework to AMHD.
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Curlyben, you should have said thank you for copying your very, very long problem to AMHD.

Anna, are you kidding? This is like some huge comprehensive problem you've got here. Did you want someone to just do it for you?