On October 1, 2021, Sharon Shewchuk began a new digital solutions service business called Digita

a sole proprietorship and will provide consultation services, computer system installations and cu
programming. She has adopted the calendar year as the reporting period and will prepare the firs
on December 31, 2021. The chart of accounts is as follows:

Account Account
Number Account Name Number Account Name
101 Cash 301 Sharon Shewchuk, Capital
110 Accounts Receivable 302 Sharon Shewchuk, Withdrawals
115 Computer Supplies 401 Computer Services Revenue
120 Prepaid Insurance 605 Wages Expense
125 Prepaid Rent 610 Advertising Expense
150 Office Equipment 615 Mileage Expense
155 Computer Equipment 620 Computer Repairs Expense
201 Accounts Payable 625 Donations Expense

Directions for October

1 Set up the balance column ledger accounts using the chart of accounts provided.
2 Prepare General Journal entries to record each of the October transactions.
IF no transaction has occurred - write 'not a business transaction'
3 Post the October General Journal entries to the Ledger Accounts.
4 Prepare a Trial Balance at October 31, 2021
5 Prepare an Income Statement, Statement of Changes in Equity,
and a Balance Sheet for the month ending October 31, 2021.

Directions for November

1 Prepare General Journal entries to record each of the October transactions.
IF no transaction has occurred - write 'not a business transaction'
2 Post the October General Journal entries to the Ledger Accounts.
* continue to use October's end balance when calculating November balances
3 Prepare a Trial Balance at November 30, 2021
4 Prepare an Income Statement, Statement of Changes in Equity,
and a Balance Sheet for the month ending November 30, 2021.
usiness called Digital Consulting. It is organized as
installations and custom software application
will prepare the first set of financial statements
 General Journal Page 1
Date Account Title & Explanation PR Debit Credit
1-Oct Cash 101 90,000
Computer Equipment 150 36,000
Office Equipment 155 18,000
Sharon Shewchuk, Capital 301 144,000
investment to begin company

2-Oct Prepaid Rent 125 9,000

Cash 101 9,000
prepaid rent in advance

3-Oct Computer Supplies 115 2,640

Accounts Payable 201 2,640
bought on credit

5-Oct Prepaid Insurance 120 4,320

Cash 101 4,320
annual property & liability insurance policy

6-Oct Accounts Receivable 110 6,600

Computer Services Revenue 401 6,600
installed new computer system- Jupiter Realty

8-Oct Accounts Payable 201 2,640

Cash 101 2,640
Paid for computer supplies bought on 0ct 3

10-Oct Hired Bob Law Part-time 'not a business transaction'

12-Oct Accounts Receivable 110 2,400

Computer Services Revenue 401 2,400
consulting service

15-Oct Cash 101 6,600

Accounts Receivable 110 6,600
received partial payment from client

17-Oct Computer Repairs Expense 620 1,410

Cash 101 1,410
Damaged Equipment

20-Oct Advertising Expense 610 3,720

 Cash 101 3,720
Online advertising

22-Oct Cash 101 2,400

Accounts Receivable 110 2,400
received payment from client

28-Oct Accounts Receivable 110 6,450

Computer Services Revenue 401 6,450
design of custom database Tech Mgmt LTD

31-Oct Wages Expense 605 1,400

Cash 101 1,400
Paid Bob law for 7 days(200 per day)

31-Oct Sharon Shewchuk, Withdrawals 302 7,200

Cash 101 7,200

Personal use
 General Journal Page 3
Date Account Title & Explanation PR Debit Credit
1-Nov Mileage Expense 615 1,000
Cash 101 1,000
1000 per 1$

2-Nov Cash 101 9,300

Computer Services Revenue 401 9,300
Simpsons Motors

5-Nov Computer Supplies 115 1,920

Cash 101 1,920
Able Office Products

8-Nov Accounts Receivable 110 8,700

Computer Services Revenue 401 8,700
Completed&installed network design plan

13-Nov Accounts Receivable 110 15,000

Computer Services Revenue 401 15,000
MET Project

18-Nov Cash 101 3,750

Accounts Receivable 106 3,750
received partial payment from client

22-Nov Donations Expense 625 1,500

cash 101 1,500
Donation United way
24-Nov Accounts Receivable 110 7,500
Computer Services Revenue 401 7,500
network installation

25-Nov Payment Reminder Tech Mgmt Ltd 'this is not a buisness transaction'

28-Nov Mileage Expense 615 1,200

Cash 101 1,200
1200 per 1$

30-Nov Wages Expense 605 2,800

Cash 101 2,800
Paid Bob law for 14 days (200 per day)

30-Nov Sharon Shewchuk, Withdrawals 302 3,600

Cash 101 3,600
Personal use
October:
Oct. 1 - Sharon started a brand new business by investing $90,000 cash, computer equ
of office equipment into the business.
Oct. 2 - Paid $9,000 rent in advance.
Oct. 3 – Purchased computer supplies on account for $2,640 from Able Office Products
Oct. 5 – Paid $4,320 insurance premium for an annual property & liability insurance po
Oct. 6 – Billed $6,600 to Jupiter Realty Inc. for installing a new computer system.
Oct. 8 – Paid for the computer supplies purchased on October 3.
Oct. 10 – Hired Bob Loblaw as a part-time administrative assistant for $200 per day.
Oct. 12 – Billed Jupiter Realty Inc. another $2,400 for consulting services.
Oct. 15 – Received $6,600 from Jupiter Realty Inc. as payment on their account.
Oct. 17 – Paid $1,410 to repair damaged computer equipment.
Oct. 20 – Paid $3,720 for online advertising.
Oct. 22 – Received $2,400 from Jupiter Realty Inc. on its account.
Oct. 28 – Billed $6,450 to Technology Management Ltd. for designing a custom databa
Oct. 31 – Paid Bob Loblaw for seven days of work.
Oct. 31 – Sharon withdrew $7,200 for personal use.

Account
Account Number Account Name Number Account Name
101 Cash 301 Sharon Shewchuk, Capital
110 Accounts Receivable 302 Sharon Shewchuk, Withdrawals
115 Computer Supplies 401 Computer Services Revenue
120 Prepaid Insurance 605 Wages Expense
125 Prepaid Rent 610 Advertising Expense
150 Office Equipment 615 Mileage Expense
155 Computer Equipment 620 Computer Repairs Expense
201 Accounts Payable 625 Donations Expense
 Account
Account Number Account Name Number Account Name
101 Cash 301 Sharon Shewchuk, Capital
110 Accounts Receivable 302 Sharon Shewchuk, Withdrawals
115 Computer Supplies 401 Computer Services Revenue
120 Prepaid Insurance 605 Wages Expense
125 Prepaid Rent 610 Advertising Expense
150 Office Equipment 615 Mileage Expense
155 Computer Equipment 620 Computer Repairs Expense
201 Accounts Payable 625 Donations Expense

November:
Nov. 1 – Reimbursed Sharon’s business automobile expenses for 1000 km at $1.00 per
Nov. 2 – Received $9,300 from Simpson Motors for computer services rendered.
Nov. 5 – Purchased $1,920 of computer supplies paying cash from Able Office Products
Nov. 8 – Completed and installed a network design plan for Canine Dental and billed th
Nov. 13 – Notified by Manitoba Education & Training that the bid of $15,000 for an upc
company.
Nov. 18 – Received $3,750 from Technology Management Ltd. as partial payment of th
Nov. 22 – Digital Consulting donated $1,500 to the United Way.
Nov. 24 – Completed a network installation for CB Engineering and billed them $7,500.
Nov. 25 – Sent a payment reminder to Technology Management Ltd. concerning their o
Nov. 28 – Reimbursed Sharon’s business automobile expense for 1200 km at $1.00 per
Nov. 30 – Paid 14 days of wages to Bob Loblaw.
Nov. 30 - $3,600 was withdrawn by Sharon for personal use.
00 cash, computer equipment valued at $36,000, and $18,000

m Able Office Products Ltd.

& liability insurance policy.
omputer system.

nt for $200 per day.

services.
n their account.

.
gning a custom database.
 1000 km at $1.00 per kilometer.
rvices rendered.
m Able Office Products Ltd.
ne Dental and billed them $8,700.
d of $15,000 for an upcoming project was awarded to the

s partial payment of their account.

nd billed them $7,500.

Ltd. concerning their overdue account.
r 1200 km at $1.00 per kilometer.
Account Name CASH Acc. No. 101
Date Explanation PR Debit Credit Balance
1-Oct GJ 90,000 90,000
2 GJ 9000 81,000
5 GJ 4320 76,680
8 GJ 2640 74,040
15 GJ 6600 80,640
17 GJ 1410 79,230
20 GJ 3720 75,510
22 GJ 2400 77,910
31 GJ 1400 76,510
31 GJ 7200 69,310
1-Nov GJ 1000 68,310
2 GJ 9300 77,610
5 GJ 1920 75,690
18 GJ 3750 79,440
22 GJ 1500 77,940
28 GJ 1200 76,740
30 GJ 2800 73,940
30 GJ 3600 70,340

Account Name ACCOUNTS RECEIVABLE Acc. No. 110

Date Explanation PR Debit Credit Balance
6-Oct GJ 6,600 6,600
12 GJ 2400 9,000
15 GJ 6600 2,400
22 GJ 2400 0
28 GJ 6450 6,450
8-Nov GJ 8700 15,150
15 GJ 15000 30,150
18 GJ 3750 26,400
24 GJ 7500 33,900

Account Name COMPUTER SUPPLIES Acc. No. 115

Date Explanation PR Debit Credit Balance
3-Oct GJ 2,640 2,640
5-Nov GJ 1,920 4,560
Account Name PREPAID INSURANCE Acc. No. 120
Date Explanation PR Debit Credit Balance
5-Oct GJ 4,320 4,320

Account Name PREPAID RENT Acc. No. 125

Date Explanation PR Debit Credit Balance
2-Oct GJ 9,000 9,000

Account Name OFFICE EQUIPMENT Acc. No. 150

Date Explanation PR Debit Credit Balance
1-Oct GJ 18,000 18,000

Account Name COMPUTER EQUIPMENT Acc. No. 155

Date Explanation PR Debit Credit Balance
1-Oct GJ 36,000 36,000

Account Name ACCOUNTS PAYABLE Acc. No. 201

Date Explanation PR Debit Credit Balance
3-Oct GJ 2,640 2,640
8-Oct GJ 2,640 0

Account Name S. SHEWCHUK, CAPITAL Acc. No. 301

Date Explanation PR Debit Credit Balance
1-Oct GJ 144,000 144,000

Account Name S. SHEWCHUK, WITHDRAWALS Acc. No. 302

Date Explanation PR Debit Credit Balance
31-Oct GJ 7,200 7,200
30-Nov GJ 3,600 10,800
Account Name COMPUTER SERVICES REVENU Acc. No. 401
Date Explanation PR Debit Credit Balance
6-Oct GJ 6,600 6,600
12 GJ 2,400 9,000
28 GJ 6,450 15,450
2-Nov GJ 9,300 24,750
8 GJ 8,700 33,450
13 GJ 15,000 48,450
24 GJ 7,500 55,950

Account Name WAGES EXPENSE Acc. No. 605

Date Explanation PR Debit Credit Balance
31-Oct GJ 1,400 1,400
30-Nov GJ 2,800 4,200

Account Name ADVERTISING EXPENSE Acc. No. 610

Date Explanation PR Debit Credit Balance
20-Oct GJ 3,720 3,720

Account Name MILEAGE EXPENSE Acc. No. 615

Date Explanation PR Debit Credit Balance
1-Nov GJ 1,000 1,000
28-Nov GJ 1,200 2,200

Account Name COMPUTER REPAIRS EXPENSE Acc. No. 620

Date Explanation PR Debit Credit Balance
17-Oct GJ 1,410 1,410

Account Name DONATIONS EXPENSE Acc. No. 625

Date Explanation PR Debit Credit Balance
22-Nov GJ 1,500 1,500
 Digital Consulting
Trial Balance
October 31, 2021
Account Title Acc. No. Debit Credit
Cash 101 69,310
Accounts Receivable 110 6,450
Computer Supplies 115 2,640
Prepaid Insurance 120 4,320
Prepaid Rent 125 9,000
Office Equipment 150 36,000
Computer Equipment 155 18,000
Accounts Payable 201 0
Sharon Shewchuk, Capital 301 144,000
Sharon Shewchuk, Withdrawals 302 7,200
Computer Services Revenue 401 15,450
Wages Expense 605 1,400
Advertising Expense 610 3,720
Mileage Expense 615 0
Computer Repairs Expense 620 1,410
Donations Expense 625 0
Totals 159,450 159,450

Digital Consulting
Trial Balance
November 30, 2021
Account Title Acc. No. Debit Credit
Cash 101 70,340
Accounts Receivable 110 33,900
Computer Supplies 115 4,560
Prepaid Insurance 120 4,320
Prepaid Rent 125 9,000
Office Equipment 150 18,000
Computer Equipment 155 36,000
Accounts Payable 201 0
Sharon Shewchuk, Capital 301 144,000
Sharon Shewchuk, Withdrawals 302 10,800
Computer Services Revenue 401 55,950
Wages Expense 605 4,200
Advertising Expense 610 3,720
Mileage Expense 615 2,200
Computer Repairs Expense 620 1,410
Donations Expense 625 1,500
Totals 199,950 199,950
 Digital Consulting
Income Statement
for month ending October 31, 2021
Revenue
Computer service revenue 15,450
Total 15,450

Expense (OE)
Computer repair expense 1,410
Advertising Expense 3,720
Wage Expense 1,400
Total 6,530
Profit 8,920

Digital Consulting
Statement of Changes in Equity
for month ending October 31, 2021
Sharon S Capital for Oct-1 0
Capital Investment 144,000
Profit 8,920
Total 152,920
Sharon S Withdrawals 7,200
Capital Oct-31 145,720

Digital Consulting
Income Statement
for month ending November 30, 2021
Revenue
Computer service revenue 40,500
Total 40,500

Expense (OE)
Mileage expense 2,200
Wage Expense 2,800
Donation Expense 1500
Total 6,500
Profit 34,000
 Digital Consulting
Statement of Changes in Equity
for month ending November 30, 2021
Sharon S Capital for Nov-1 145,720
Profit 34,000
Total 179,720

Sharon S Withdrawals 3,600

Capital Nov-30 176,120
 Digital Consulting
Balance Sheet
October 31, 2021
Assets Liabilities
Cash 69,310 Accounts Payable 0
Accounts Receivable 6,450
Computer Supplies 2,640 Equity
Prepaid Insurance 4,320 Capital, Sharon S 145,720
Prepaid Rent 9,000
Office Equipment 18,000
Computer Equipment 36,000
Total 145,720 Total Equity & Liabilities 145,720

Digital Consulting
Balance Sheet
November 30, 2021
Assets Liabilities
Cash 70,340 Accounts Payable 0
Accounts Receivable 33,900
Computer Supplies 4,560 Equity
Prepaid Insurance 4,320 Capital, Sharon S 176,120
Prepaid Rent 9,000
Office Equipment 18,000
Computer Equipment 36,000
Total 176,120 Total Equity & Liabilities 176,120