Computer Services & More provides customers with multiple
services in connection with computers. It opens for business
and completes these transactions in September 2009.
9/1 Joe Hodges, the owner, invests $130,000 cash along with
office equipment valued at $31,200 in the company.
9/1 Cash
Office equipment
J. Hodges, capital
130,000
31,200
161,200
9/2 The company prepaid $7,200 cash for 12 months rent for
office space.
9/2 Prepaid rent
Cash
7,200
7,200
9/4 The company made credit purchases for $15,600 in office
equipment and $3,120 in office supplies. Payment is due in 10
days.
9/4 Office equipment
Office supplies
Accounts payable
15,600
3,120
18,720
9/8 The company completed work for a client and immediately
received $2,000 cash.
9/8 Cash
Computer service revenues
2,000
2,000
9/12 The company completed a $10,400 project for a client who
must pay within 30 days.
9/12 Accounts receivable
Computer service revenues
10,400
10,400
9/12 The company paid $18,720 cash to settle the payable created
on September 4.
9/12 Accounts payable
Cash
18,720
18,720
9/19 The company paid $6,000 cash for the premium on an 18
month insurance policy.
9/19 Prepaid insurance
Cash
6,000
6,000
9/23 The company received $8,320 cash as partial payment for
the work completed on September 12.
9/23 Cash
Accounts receivable
8,320
8,320
9/28 Joe Hodges withdrew $6,200 cash from the company for
personal use.
9/28 J. Hodges, Withdrawals
Cash
6,200
6,200
9/29 The company paid $700 for this month’s utility bill.
9/29 Utility expense
Cash
700
700
9/30 The company received $1,000 from a client for computer
services that will be performed in October and November.
9/30 Cash
Unearned revenue
1,000
1,000