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This comprehensive problem starts in this chapter and continues in Chapters 3,4 , and 5 . On October 1, 2020, Darcy Zaylo organized a computer service company called Darcy Systems. Darcy is organized as a sole proprietorship and will provide consulting services, computer system installations, and custom program development. Zaylo 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: U 21 Required 22 1. Using the worksheets provided: 23 2. Prepare journal entries to record each of the following October and November transactions. 5 4. Prepare a trial balance at November 30, 2020. 5. Prepare an income statement and a statement of changes in equity for the two month period ended November 30, 2020, as well as a balance sheet at November 30, 2020. Oct. 1 Darcy Zaylo invested $50,000 cash, a used computer system valued at $11,640, and $22,800 of office equipment in the business. 2 Paid six months of rent in advance; $14,850. 3 Purchased computer supplies on credit for $3,100 from Morris Supplies. 5 Paid $15,120 cash for one year's premium on a property and liability insurance policy. 6 Billed J\&J Technologies $4,325 for installing a new computer system and providing J\&J Technologies's employees with training. 8 Paid for the computer supplies purchased from Morris Supplies. 10 Hired Chris Douglas as a part-time assistant for $240 per day, as needed. 12 Billed J\&J Technologies another $2,480 for computer services rendered. 15 Received $2,000 from J\&J Technologies on its account. 17 Paid $850 to repair equipment damaged when moving into the new office. 20 Paid $1,900 for an advertisement in the local newspaper. 22 Received the balance owing from J\&J Technologies on its account. 28 Billed Wilson Dance Studios $4,600 for services. 31 Paid Chris Douglas for 13 days' work. 31 Darcy Zaylo withdrew $1,700 cash from the business for personal use. Nov. 1 Reimbursed Darcy Zaylo's business automobile expense for 1,200 kilometres at $2.05 per kilometre. 2 Received $5.000 cash from Murrav Clothiers for combuter services combleted Ch2 - Darcy Systems Oct 1 Opening TB Balance Column Accts 2 Received $5,000 cash from Murray Clothiers for computer services completed today. 5 Purchased $1,400 of computer supplies for cash from Morris Supplies. 8 Billed Pelletier Food Services $3,650 for computer services rendered. 13 Notified by Reynolds Plumbing Co. that Darcy's bid of $20,400 for an upcoming project was accepted. 18 Received $1,600 from Wilson Dance Studios against the bill dated October 28. 22 Donated $4,000 to the local food bank in the company's name. 24 Completed work for Reynolds Plumbing Co. and sent a bill for the amount agreed to on November 13. 25 Sent another bill to Wilson Dance Studios for the past due amount of $3,000. 28 Reimbursed Darcy Zaylo's business automobile expense for 540 kilometres at $2.05 per kilometre. 30 Paid Chris Douglas for 17 days' work. 30 Darcy Zaylo withdrew $2,000 cash from the business for personal use. This is a continuation of the Unit 2 assignment, after all corrections have been made Chapter 2 segment has not been completed, the assignment can begin at this point. After the success of its first two months, Darcy Zaylo has decided to continue operating Darcy Systems. Before proceeding in December, Zaylo adds these new accounts to the chart of accounts for the ledger: 2 Required 3 1. Prepare journal entries to record each of the following transactions for Darcy Systems. Post th c. As of the end of the year, Chris Douglas has not been paid for 14 days of work at the rate of $240 per day. d. The computer equipment is expected to have a two-year life with no residual value. e. The office equipment is expected to have a five-year life with no residual value. f. Prepaid rent for three of the six months has expired. 3. Prepare an adjusted trial balance as of December 31, 2020 . 4. Prepare an income statement and statement of changes in equity for the three months ended December 31, 2020. 5. Prepare a balance sheet as of December 31, 2020

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