BUSINESS SOLUTIONS Partial Work Sheet March 31, 2020 Unadjusted Trial Balance Adjustments Adjusted Trial Balance No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. 101 Cash 63,307 63,307 106.1 Alex's Engineering Co. 106.2 Wildcat Services 2,960 2,960 106.3 Easy Leasing 9,117 9, 117 106.4 IFM Co. 5,370 5,370 106.5 Liu Corp. 106.6 Gomez Co. 106.7 Delta Co. 106.8 KC, Inc. 5,950 5,950 106.9 Dream, Inc. 119 Merchandise inventory 1,582 998 584 126 Computer supplies 3,510 1,305 2,205 128 Prepaid insurance 1,827 609 1,218 131 Prepaid rent 3,700 2,775 925131 Prepaid rent 163 Ofce equipment 164 Accumulated depreciationOfce equipment 167 Computer equipment 168 Accumulated depreciationComputer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 301 S. Rey, Capital 302 S. Rey, Withdrawals 403 Computer services revenue 41 3 Sales 414 Sales returns and allowances 415 Sales discounts 502 Cost of goods sold 612 Depreciation expenseOffice equipment 613 Depreciation expenseComputer 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 expenseComputer Totals 3,700 8,080 2,775 925 8,080 O (O (D O 0 21,500 21.500 1,110 1,110 2,220 01 _\\ OJ C ("IU'I 000 1,64 01 105,662 105,662 N P O) on 0 4,680 25,427 19,440 25,427 19,440 .1; (.0 13,770 14,768 0.) N 1,11 1,11 6,11 '6 01 2,77 1,305 2,77 [xi-R WW mo 7 on O 7 155,034 {10 CO CO 0 A. E (0 N CD 0 8,762 8,762 155,034 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 modied 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 $48,552 106.1 Alex's Engineering Co. 0 106.2 Wildcat Services 0 106.3 Easy Leasing 0 106.4 IFM Co. 3,000 106.5 Liu Corp. 0 106.6 Gomez Co. 2.768 106.7 Delta Co. 0 106.8 KC, Inc. 0 106.9 Dream. Inc. 0 119 Merchandise inventory 0 126 Computer supplies 730 128 Prepaid insurance 1,827 131 Prepaid rent 925 163 Office equipment 8,080 164 Accumulated depreciationOffice equipment $ 320 167 Computer equipment 21.500 168 Accumulated depreciationComputer equipment 1,110 201 Accounts payable 1.200 210 Wages payable 940 236 Unearned computer services revenue 1,350 301 S. Rey, Capital 82,462 302 S. Rey, Withdrawals 0 403 Computer services revenue 0 413 Sales 0 414 Sales returns and allowances 415 Sales discounts 502 Cost of goods sold 612 Depreciation expenseOffice equipment 613 Depreciation expenseComputer 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 expenseComputer r____________________________________________________________________ SSSSSSSSSSSSS In response to requests from customers, 5. 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 follovv: Jan. 4 '4U'l 13 15 16 17 20 22 24 26 26 Feb. w:4 15 23 26 27 Mar. 8 11 16 19 24 25 30 31 The company paid cash to Lyn Addie for five days' work at the rate of $235 per day. Four of the five days relate to wages payable that were accrued in the prior year. Santana Rey invested an additional $23,200 cash in the company. The company purchased $6,000 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. The company received $2,768 cash from Gomez Co. as full payment on its account. The company completed a five-day project for Alex's Engineering Co. and billed it $5,500, which is the total price of $6.850 less the advance payment of $1,350. The company debited Unearned Computer Services Revenue for $1,350. The company sold merchandise with a retail value of $4,900 and a cost of $3,450 to Liu Corp., invoice dated January 13. The company paid $790 cash for freight charges on the merchandise purchased on January 7. The company received $4,130 cash from Delta Co. for computer services provided. The company paid Kansas Corp. for the invoice dated January 7, net of the discount. The company gave a price reduction (allowance) of $600 to Liu Corp., and credited Liu's accounts receivable for that amount. The company received the balance due from Liu Corp., net of the discount and the allowance. 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. The company purchased $9,200 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination. invoice dated January 26. The company sold merchandise with a $4,490 cost for $5,950 on credit to KC, Inc., invoice dated January 26. The company paid cash to Lyn Addie for 10 days' work at $235 per day. The company paid $2,775 cash to Hillside Mall for another three months' rent in advance. The company paid Kansas Corp. for the balance due. net of the cash discount, less the $486 credit from merchandise returned on January 24. The company paid $430 cash to Facebook for an advertisement to appear on February 5 only. The company received the balance due from Alex's Engineering Co. for fees billed on January 11. Santana Rey withdrew $4,680 cash from the company for personal use. The company sold merchandise with a $2,590 cost for $3,260 on credit to Delta Co., invoice dated February 23. The company paid cash to Lyn Addie for eight days' work at $235 per day. The company reimbursed Santana Rey $192 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." The company purchased $2,780 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. The company received the balance due from Delta Co. for merchandise sold on February 23. The company paid $780 cash for minor repairs to the company's computer. The company received $5,330 cash from Dream, Inc., for computing services provided. The company paid the full amount due of $3,980 to Harris Office Products, consisting of amounts created on December 15 (of $1,200) and March 8. The company billed Easy Leasing for $9,117 of computing services provided. The company sold merchandise with a $2,132 cost for $2,960 on credit to Wildcat Services, invoice dated March 25. The company sold merchandise with a $1,108 cost for $2,370 on credit to IFM Company. invoice dated March 30. The company reimbursed Santana Rey $96 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." The following additional facts are available for preparing adjustments on March 31 prior to nancial statement preparation: a. The March 31 amount of computer supplies still available totals $2.205. b. Prepaid Insurance coverage of $609 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $235 per day. d. Prepaid rent of $2,775 expired during this 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,110. f. Depreciation on the ofce equipment for January 1 through March 31 is $320. 9. The March 31 amount of merchandise inventory still available totals $584. BUSINESS SOLUTIONS Balance Sheet March 31, 2020 Assets Current assets Total current assets 0 Plant assets Office Equipment, net 0 Computer equipment, net 0 Total plant assets 0 Total assets EA 0 Liabilities Current liabilities Equity Total liabilities and equity $ 0