On October 1, 2020, Mary Graham organized a computer service company called Echo Systems. Echo is organized as a sole proprietorship and will provide consulting services, computer systeminstallations, and custom program development. Graham has adopted the calendar year for reporting, and expects to prepare the company's first set of financial statements as of December 31, 2020. Theinitial chart of accounts for the accounting system includes these items:Account Number101106126128131163167201Account NameCashAccounts ReceivableComputer SuppliesPrepaid InsurancePrepaid RentOffice EquipmentComputer EquipmentAccounts PayablePART A:CHECK FIGURES: 4. Total Dr.= $159,450; Profit= $8,920; Total assets = $145,720Oct.Required1. Set up balance column accounts based on the chart of accounts provided.2. Prepare journal entries to record each of the following October transactions.3. Post the October entries.Account Number3013024036236556766846994. Prepare a trial balance at October 31, 2020.5. Prepare an income statement and a statement of changes in equity for the month ended October 31, 2020, as well as a balance sheet at October 31, 2020.Paid $4,320 cash for one year's premium on a property and liability insurance policy.Billed Capital Leasing $6,600 for installing a new computer.Paid for the computer supplies purchased from Abbott Office Products.Hired Carly Smith as a part-time assistant for $200 per day, as needed.Billed Capital Leasing another $2.400 for computer services rendered.Received $6,600 from Capital Leasing on its account.28 Billed Decker Company $6,450 for services.31Paid Carly Smith for seven days' work.31 Withdrew $7,200 cash from the business for personal use.Account NameMary Graham, CapitalMary Graham, WithdrawalsComputer Services RevenueWages Expense1 Graham invested $90,000 cash, a $36,000 computer system, and $18,000 of office equipment in the business.2Paid rent in advance of $9,000.3Purchased computer supplies on credit for $2,640 from Abbott Office Products.56810121517Paid $1.410 to repair computer equipment damaged when moving into the new office.20Paid $3,720 for an advertisement in the local newspaper.22 Received $2,400 from Capital Leasing on its account.Advertising ExpenseMileage ExpenseRepairs Expense, ComputerCharitable Donations Expense

Financial statement - Financial Statement includes Income Statement, Statement of Changes in Equity…

On October 1, 2020, Mary Graham organized a computer service company called Echo Systems. Echo is organized as a sole proprietorship and will provide consulting services, computer system installations, and custom program development. Graham has adopted the calendar year for reporting, and expects to prepare the company's first set of financial statements as of December 31, 2020. The initial chart of accounts for the accounting system includes these items: Account Number 101 106 126 128 131 163 167 201 Oct. Account Name Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Office Equipment Computer Equipment Accounts Payable PART A: CHECK FIGURES: 4. Total Dr.- $159,450; Profit-$8.920; Total assets - $145,720 Required 1. Set up balance column accounts based on the chart of accounts provided. 2. Prepare journal entries to record each of the following October transactions. 3. Post the October entries. Account Number 301 302 403 623 655 676 684 699 Account Name Mary Graham, Capital Mary Graham, Withdrawals Computer Services Revenue Wages Expense 4. Prepare a trial balance at October 31, 2020. 5. Prepare an income statement and a statement of changes in equity for the month ended October 31, 2020, as well as a balance sheet at October 31, 2020. Advertising Expense Mileage Expense Repairs Expense, Computer Charitable Donations Expense 2 3 Purchased computer supplies on credit for $2,640 from Abbott Office Products. 5 Paid $4,320 cash for one year's premium on a property and liability insurance policy. 6 Billed Capital Leasing $6,600 for installing a new computer. 8 Paid for the computer supplies purchased from Abbott Office Products. 10 Hired Carly Smith as a part-time assistant for $200 per day, as needed. 12 Billed Capital Leasing another $2,400 for computer services rendered. 15 Received $6,600 from Capital Leasing on its account. 17 Paid $1.410 to repair computer equipment damaged when moving into the new office. 20 Paid $3,720 for an advertisement in the local newspaper. 22 Received $2,400 from Capital Leasing on its account. 28 Billed Decker Company $6,450 for services. 31 Paid Carly Smith for seven days' work. 31 Withdrew $7,200 cash from the business for personal use. 1 Graham invested $90,000 cash, a $36,000 computer system, and $18,000 of office equipment in the business. Paid rent in advance of $9,000.