Answer question number 3
Santana Rey created Business Solutions on October 1, 2021. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modifled 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, 2021. 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 Recelvable account. This change allows the company to continue using the existing chart of accounts. 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. January 4 The company paid cash to Lyn Addie for five days' work at the rate of $215 per day. Four of the five days relate to wages payable that were accrued in the prior year. January 5 Santana Rey invested an additional $23,900 cash in the company. January 7 The company purchased $7,100 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. January 9 The company received $2,768 cash from Gomez company as full payment on its account. January 11 The company completed a five-day project for Alex's Engineering Company and billed it $5,459, which is the total price of $6,880 less the advance payment of $1,430. The company debited Unearned Computer Services Revenue for $1,430. January 13 The company sold merchandise with a retail vatue of $4,200 and a cost of $3,510 to Liu Corporation, invoice dated January 13. January 15 The company paid $730 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,030 cash from Delta Company for computer services provided. January 17 The company paid Kansas Corporation for the invoice dated January 7 , net of the discount. January 20 The company gave a price reduction (allowance) of $700 to Liu Corporation and credited Liu's accounts receivable for that anount. January 22 The company received the balance due from Liu Corporation, net of the discount and the allowance. January 24 The company returned defective merchandise to Kansas Corporation and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $496. January 26 The company purchased $9,400 of merchandise from Kansas Corporation with terms of 1/10, n/30, F0B destination, invoice dated January 26. January 26 The conpany sold merchandise with a $4,630 cost for $5,940 on credit to KC, Incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days' work ot $215 per day. February 1 The company paid $2,655 cash to Hitlside Mall for another three months' rent in advance. February 3 The conpany paid Kansas Corporation for the balance due, net of the cash discount, less the $496 credit from merchandise returned on January 24. February 5 The company paid $440 cash to Facebook for an advertisenent to appear on February 5 onty. February 11 The company received the batance due from Alex's Engineering Company for fees billed on January 11. February 15 S. Rey withdrew $4,800 cash from the company for personat use. 11. February 15s. Rey withdrew $4,800 cash from the company for personal use. February 23 The company sold merchandise with a $2,540 cost for $3,410 on credit to Delta company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $215 per day. February 27 The company reimbursed Santana Rey $352 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8. The company purchased $2,790 of computer supplies from Harris Office Products on credit with terms of n/36, FOB destination, invoice dated March 8 . March 9 The company received the batance due from Delta Company for merchandise sold on February 23. March 11 The company paid $840 cash for minor repairs to the company's computer. March 16 The company received $5,440 cash from Drean, Incorporated, for computing services provided. March 19 The company paid the fult amount due of $3,970 to Harris office Products, consisting of anounts created on December 15( of $1,180) and March 8. March 24 The company billed Easy Leasing for $9,207 of computing services provided. March 25 The company sold merchandise with a $2,012 cost for $2,930 on credit to Witdcat Services, invoice dated March 25. March 30 The company sold merchandise with a $1,228 cost for $2,290 on credit to IFM Company, invoice dated March 30. March 31 The coepany reimbursed Santana Rey $96 cash for business automobile mileage. The company recorded the reimbursenent as "Mileage Expense." The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation. a. The March 31 amount of computer supplies still available totals $2,085. b. Prepaid Insurance coverage of $618 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $215 per day. d. Prepaid rent of $2,655 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,120. f. Depreciation on the office equipment for January 1 through March 31 is $250. 9. The March 31 amount of merchandise inventory still available totals $554. 3. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted irial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. Required information
