BIN SP 4 Santana Rey created Business Solutions October 2016. The company has been successful and its list of customers has grown. Tencommodate the growth the accounting stem is modified to set up separate accounts for each customer. The following chart of accounts includes the account ber used for each account and any balance as of December 31, 2019. Santana Rey decided to add a forth it with a decimal point to the 106 count imber that had been used for the Single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts. DE Dr. CE $4,372 CENO. Account The 230 Ware payable 236 Uneared computer services reve soy common stock 18 Retained earnings 319 Dividends 103 Computer services revenge S 300 2.300 73.000 7.300 1000 2,068 No Account Tile 301 Cash 106. Alex's Enging Co. 100 Wildcat Services 1063 Fax Leasing 1004 IMC 106.3 L Corp 106.6 G C 106. Delta 106.8 KC, Inc. Dene 119 Merchant Com a Popard Preparat 163 Office 204 Amed deprecate-office 16 Compu t 168 Accumulated depreciation Computer equipment 201 Accounts payable 45 Sales discounts soo Couto 62 Depreciation expe 63 Deprecates t Computer 350 66 8.000 20,000 67 Insurance expense $40060 Rest expense 652 Computer supplies expense 1250 655 Advertising expense 676 Mileage expense 1,100 677 Miscellaneous expenses 684 Repairs expense Computer 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 soa) 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 Adelie for five days' work at the rate of Suas per day. Four of the five days relate to w es payable that were were in the prior year. Santana Rey invested an tional Sas.con cash in the company in exchange for more common wock 7 The company purchased son of merchandise from Kansas Corp, with terms of 1/10, 1/3, FOB shipping point, invoice dated The company received a cash from a fl i ts 11 The company completed a five-day project for Alex's Engineering Counded its.goo, which is the total price .com the dance payment of Sigo. The company debit Card Ceputer Services Revesse for $300 13 The company old merchandise with real value of $5.200 and a cost of $3.560 to La Corp, Invaldated January 13 Page 16 15 The company paid 5600 cash for freight charges on the merchandise purchased on January 16 The company received 500 cash free Delta Ce for computer services provided 17 The company paid Kansas Corp. for the invoice dated January 7,et of the discount. * The company give price reduction (Allowance) of $500 to Li Corp. and credited Llu's accounts receivable for that amount 29 The company received the balance de from Liu Corp., net of the discount and the allowance The company returned defecthe merchandise to Kansas Corp. and accepted a credit ainst future purchases (debited accounts payable). The defecthe merchandise invoice cost, et of the discount, was 5.496. 26 The company purchased 50,000 of merchandise from Kansas Corp, with terms of 1/10, 1/30, Fon destination, Involce dated January 26. 26 The company sold merchandise with a 5.16 cost for 85.800 on credit to KC, Inc., invoice dated January 31 The company paid cash to Lyn Addie for so days' work at $125 per day. Feb. Mar. The company paid $2,475 cash to Hillside Mall for another three months' rent in w 3 The company paid Kansas Comp, for the balance due mat of the cash discount, less the 8-19 e January 24 as Corp. for the balance debt of the cash the credit from merchandise returned 5 The company paid 5600 cash to Facebook for an a rtisement to appear on February 5 only 11 The company received the balance de frole's Engineering Co. for fees bied on January 1L 15 The company pada $4,800 cash dividend. 23 The company sold merchandise with a $ 22660 D a Colowe dated February 23 26 The company paid cash to Lyn Add for eight days' works as per day 27 The company reimbursed Santana Re Sachor o biele The company recorded the reimb "Mileage Expense." 8 The company purchased Smo comer Haro Products on credit with terms of n/30, FOB destination invoice dated March 9 The company received the balance due from Delta Co for merchandise sold on February 23 11 The company paid $960 cash for minor repairs to the company's computer 16 The company received Ss 260 cash from Dream le for computing vios posted 19 The company paid the full amount due of Suso to Harris Ole Products, consisting of amounts created on December 15 of $1,100) and March 8. 24 The company billed Easy Leasing for $0.04% of computing mrvices provided. 25 The company sold merchandise with a $9.00 cost for Sa 300 on credit to Wildcat Services, invoice dated March 25 cost for $ o on credit to IFM Company, invoice dated March 30. 30 The company sold merchandise with a 31 The company reimbursed Santana Rey 128 cash for business tomobile mileare. The company recorded the reimbursement 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 $2,005- b. Prepaid insurance coverage of $555 expired during this three-month period. c Lyn Addie has not been paid for seven days of work at the rate of $125 per day. d. Prepaid rent of $2.475 expired during this three-month period. e Depreciation on the computer equipment for January 1 through March 31 is $1.250. Depreciation on the office equipment for January 1 through March 31 is $400. 9. The March 31 amount of merchandise inventory still available totals $704. Required 1. Prepare journal entries to record each of the January through March transactions. Post the journal entries in part 1 to the accounts in the company's general ledger. Note: Begin with the ledger's post-closing adjusted balances as of December 31, 2019 Prepare a 6-column work sheet (similar to the one shown in Exhibit 3.13) that includes the unadjusted trial balance the Marchi adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31. 2020. (a) Use a single-step format. List all expenses without differentiating between selling expenses and general- and administrative expenses. (b) Use a multiple-step format that begins with gross sales service revenues plus gross product sales) and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Categorize the following accounts as selling expenses: Wages Expense, Mileage Expense, and Adsertising Expense. Categorize the remaining expenses as general and administrative Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31. 2020. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2020. FASTFORWARD Trial Balances December 31, 2019 Unad usted Trial Balance Dr. Cr Adjusted Trial Balance Adjustments -Dr. DE $ 4.275 $1,800 1.800 $ 4,275 0 9,720 2.400 26,000 (b) $1,050 lo) 100 8,670 2,300 26,000 Acct. No. Account Title 101 Cash 106 Accounts receivable 126 Supplies 128 Prepaid Insurance 167 Equipment 168 Accumulated depreciation-Equip. 201 Accounts payable ( 209 Salaries payable 236 Uneamed consulting revenue 307 Common stock 318 Retained eamings 319 Dividends 403 Consulting revenue (c) 300 6.200 le) 210 $ 300 6,200 210 2.750 30.000 3.000 30,000 (d) 250 0 200 200 5.800 7.850 (d) ( 250 1,800 300 300 0 1,400 406 612 622 637 640 1652 690 (c) le) (a) 300 210 100 Rental revenue Depreciation expense-Equip. Salaries expense Insurance expense Rent expense Supplies expense Utilities expense Totals 300 1,610 100 1.000 1.050 1,000 (b) 1,050 305 305 $45.300 $45.300 $3,710 $3,710 $47610 $47610 obu O dlo Need Required 4-16 Answered non sus 1-3 Completed BIN SP 4 Santana Rey created Business Solutions October 2016. The company has been successful and its list of customers has grown. Tencommodate the growth the accounting stem is modified to set up separate accounts for each customer. The following chart of accounts includes the account ber used for each account and any balance as of December 31, 2019. Santana Rey decided to add a forth it with a decimal point to the 106 count imber that had been used for the Single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts. DE Dr. CE $4,372 CENO. Account The 230 Ware payable 236 Uneared computer services reve soy common stock 18 Retained earnings 319 Dividends 103 Computer services revenge S 300 2.300 73.000 7.300 1000 2,068 No Account Tile 301 Cash 106. Alex's Enging Co. 100 Wildcat Services 1063 Fax Leasing 1004 IMC 106.3 L Corp 106.6 G C 106. Delta 106.8 KC, Inc. Dene 119 Merchant Com a Popard Preparat 163 Office 204 Amed deprecate-office 16 Compu t 168 Accumulated depreciation Computer equipment 201 Accounts payable 45 Sales discounts soo Couto 62 Depreciation expe 63 Deprecates t Computer 350 66 8.000 20,000 67 Insurance expense $40060 Rest expense 652 Computer supplies expense 1250 655 Advertising expense 676 Mileage expense 1,100 677 Miscellaneous expenses 684 Repairs expense Computer 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 soa) 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 Adelie for five days' work at the rate of Suas per day. Four of the five days relate to w es payable that were were in the prior year. Santana Rey invested an tional Sas.con cash in the company in exchange for more common wock 7 The company purchased son of merchandise from Kansas Corp, with terms of 1/10, 1/3, FOB shipping point, invoice dated The company received a cash from a fl i ts 11 The company completed a five-day project for Alex's Engineering Counded its.goo, which is the total price .com the dance payment of Sigo. The company debit Card Ceputer Services Revesse for $300 13 The company old merchandise with real value of $5.200 and a cost of $3.560 to La Corp, Invaldated January 13 Page 16 15 The company paid 5600 cash for freight charges on the merchandise purchased on January 16 The company received 500 cash free Delta Ce for computer services provided 17 The company paid Kansas Corp. for the invoice dated January 7,et of the discount. * The company give price reduction (Allowance) of $500 to Li Corp. and credited Llu's accounts receivable for that amount 29 The company received the balance de from Liu Corp., net of the discount and the allowance The company returned defecthe merchandise to Kansas Corp. and accepted a credit ainst future purchases (debited accounts payable). The defecthe merchandise invoice cost, et of the discount, was 5.496. 26 The company purchased 50,000 of merchandise from Kansas Corp, with terms of 1/10, 1/30, Fon destination, Involce dated January 26. 26 The company sold merchandise with a 5.16 cost for 85.800 on credit to KC, Inc., invoice dated January 31 The company paid cash to Lyn Addie for so days' work at $125 per day. Feb. Mar. The company paid $2,475 cash to Hillside Mall for another three months' rent in w 3 The company paid Kansas Comp, for the balance due mat of the cash discount, less the 8-19 e January 24 as Corp. for the balance debt of the cash the credit from merchandise returned 5 The company paid 5600 cash to Facebook for an a rtisement to appear on February 5 only 11 The company received the balance de frole's Engineering Co. for fees bied on January 1L 15 The company pada $4,800 cash dividend. 23 The company sold merchandise with a $ 22660 D a Colowe dated February 23 26 The company paid cash to Lyn Add for eight days' works as per day 27 The company reimbursed Santana Re Sachor o biele The company recorded the reimb "Mileage Expense." 8 The company purchased Smo comer Haro Products on credit with terms of n/30, FOB destination invoice dated March 9 The company received the balance due from Delta Co for merchandise sold on February 23 11 The company paid $960 cash for minor repairs to the company's computer 16 The company received Ss 260 cash from Dream le for computing vios posted 19 The company paid the full amount due of Suso to Harris Ole Products, consisting of amounts created on December 15 of $1,100) and March 8. 24 The company billed Easy Leasing for $0.04% of computing mrvices provided. 25 The company sold merchandise with a $9.00 cost for Sa 300 on credit to Wildcat Services, invoice dated March 25 cost for $ o on credit to IFM Company, invoice dated March 30. 30 The company sold merchandise with a 31 The company reimbursed Santana Rey 128 cash for business tomobile mileare. The company recorded the reimbursement 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 $2,005- b. Prepaid insurance coverage of $555 expired during this three-month period. c Lyn Addie has not been paid for seven days of work at the rate of $125 per day. d. Prepaid rent of $2.475 expired during this three-month period. e Depreciation on the computer equipment for January 1 through March 31 is $1.250. Depreciation on the office equipment for January 1 through March 31 is $400. 9. The March 31 amount of merchandise inventory still available totals $704. Required 1. Prepare journal entries to record each of the January through March transactions. Post the journal entries in part 1 to the accounts in the company's general ledger. Note: Begin with the ledger's post-closing adjusted balances as of December 31, 2019 Prepare a 6-column work sheet (similar to the one shown in Exhibit 3.13) that includes the unadjusted trial balance the Marchi adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31. 2020. (a) Use a single-step format. List all expenses without differentiating between selling expenses and general- and administrative expenses. (b) Use a multiple-step format that begins with gross sales service revenues plus gross product sales) and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Categorize the following accounts as selling expenses: Wages Expense, Mileage Expense, and Adsertising Expense. Categorize the remaining expenses as general and administrative Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31. 2020. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2020. FASTFORWARD Trial Balances December 31, 2019 Unad usted Trial Balance Dr. Cr Adjusted Trial Balance Adjustments -Dr. DE $ 4.275 $1,800 1.800 $ 4,275 0 9,720 2.400 26,000 (b) $1,050 lo) 100 8,670 2,300 26,000 Acct. No. Account Title 101 Cash 106 Accounts receivable 126 Supplies 128 Prepaid Insurance 167 Equipment 168 Accumulated depreciation-Equip. 201 Accounts payable ( 209 Salaries payable 236 Uneamed consulting revenue 307 Common stock 318 Retained eamings 319 Dividends 403 Consulting revenue (c) 300 6.200 le) 210 $ 300 6,200 210 2.750 30.000 3.000 30,000 (d) 250 0 200 200 5.800 7.850 (d) ( 250 1,800 300 300 0 1,400 406 612 622 637 640 1652 690 (c) le) (a) 300 210 100 Rental revenue Depreciation expense-Equip. Salaries expense Insurance expense Rent expense Supplies expense Utilities expense Totals 300 1,610 100 1.000 1.050 1,000 (b) 1,050 305 305 $45.300 $45.300 $3,710 $3,710 $47610 $47610 obu O dlo Need Required 4-16 Answered non sus 1-3 Completed