4. pls complete correctly and i will give a thumbs up. thanks!
Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019. Santana Rey decided to add a fourth digit with a decimal point to the 106 account number that had been used for the single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts, No. Account Title Debit Credit 101 Cash $48,392 106.1 Alex's Engineering Co. 106.2 Wildcat Services 8 106.3 Easy Leasing 106.4 IFM CO. 3,020 106.5 Liu Corp. @ 106.6 Gomez Co. 2,858 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. @ 119 Merchandise inventory 126 Computer supplies 630 128 Prepaid insurance 1,962 131 Prepaid rent 885 163 office equipment 8,020 164 Accumulated depreciation office equipment $ 400 Computer equipment 21,400 168 Accumulated depreciation-Computer equipment 1,130 201 Accounts payable 1,170 210 Wages payable 980 236 Unearned computer services revenue 1,489 307 Common stock 73,847 318 Retained earnings 8,160 319 Dividends 403 Computer services revenue 413 Sales 41 Sales returns and allowances 415 Sales discounts 502 Cost of goods sold 612 Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 167 0 In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 1/10, n/30, FOB shipping point, to all customers who purchase this merchandise. However, no cash discount is available on consulting fees. Additional accounts (Nos. 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the company's new merchandising activities. Its transactions for January through March follow: Jan. 4 The company paid cash to Lyn Addie for five days' work at the rate of $245 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $24,500 cash in the company in exchange for more common stock. 7 The company purchased $7,380 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,858 cash from Gomez Co. as full payment on its account. 11 The company completed a five-day project for Alex's Engineering Co. and billed it $5,320, which is the total price of $6,800 less the advance payment of $1,480. The company debited Unearned Computer Services Revenue for $1,480. 13 The company sold merchandise with a retail value of $4,000 and a cost of $3,390 to Liu Corp., invoice dated January 13. 15 The company paid $660 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,090 cash from Delta Co. for computer services provided. 17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 The company gave a price reduction (allowance) of $600 to Liu Corp., and credited Liu's accounts receivable for that amount. 22 The company received the balance due from Liu Corp., net of the discount and the allowance. 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $486. 26 The company purchased $10,000 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26. 26 The company sold merchandise with a $4,440 cost for $5,868 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $245 per day. Feb. 1 The company paid $2,655 cash to Hillside Mal for another three months' rent in advance. 3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $486 credit from merchandise returned on January 24. 5 The company paid $580 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 The company paid a $4,740 cash dividend. 23 The company sold merchandise with a $2,620 cost for $3,240 on credit to Delta Co., Invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $245 per day. 27 The company reimbursed Santana Rey $192 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,890 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $910 cash for minor repairs to the company's computer. 16 The company received $5,390 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $4,060 to Harris Office Products, consisting of amounts created on December 15 (of $1,170) and March 8. 24 The company billed Easy Leasing for $9,847 of computing services provided. 25 The company sold merchandise with a $2,202 cost for $2,870 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,108 cost for $2,290 on credit to IFM Company, invoice dated
