Complete the Required 1-6

101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services S48,372 210 236 301 302 403 413 Wages payable Unearned computer services revenue S. Rey. Capital S. Rev. Withdrawals Computer services revenue Sales 0 1,500 0 80.360 106.3 Easy Leasing 106.4 IFM Co. 106.5 Liu Corp. 106.6 Gomez Co. 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. 119 Merchandise inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciationOffice equipment so 3.000 414 Sales returns and allowances 415 Sales discount:s 502 Cost of goods sold 612 Depreciation expense Office equipment 613 Depreciation expense Computer equipment0 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 0 0 0 580 1,665 825 8.000 0 $ 400 655 Advertising expense 20,000 676 Milenge expense 167 Computer equipment 168 Accumulated depreciation Computer equipment 201 Accounts payable 677 Miscellaneous expenses 1.100684 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 502) are added to its general ledger to accommodate the company's new merchandising activities. Also. Business Solutions does not use reversing entries and, therefore, all revenue and expense accounts have zero beginning balances as of January I. 2018. Its transactions for January through March follow: The company paid cash to Lyn Addie for five days' work at the rate of $125 per day. Four of the five days relate to wages payable that were accrued in the prior year Jan. 4 5 Santana Rey invested an additional $25.000 cash in the company The company purchased $5.800 of merchandise from Kansas Corp, with terms of 1/10, n/30. FOB shipping point invoice dated January 7 9 The company received S2.668 cash from Gomez Co, as full payment on its account Page 244 11 The company completed a five-day project for Alex's Engineering Co. and billed it $5.500. which is the total price of $7.000 less the advance payment of $1.500. Check Jan 11, Dr. Uneamed Computer Services Revenue $1 500 13 The company sold merchandise with a retail value of S5,200 and a cost of $3.560 to Liu Corp., invoice dated January 13 15 The company paid $600 cash for freight charges on the merchandise purchased on January 7 16 The company received S4.000 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 Liu Corp returned $500 of defective merchandise from its invoice dated January 13. The returned merchandise. which had a $320 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products m Cost of Goods Sold) Jan 20, No etiy t Gest of d Sold The company recerved the balance due from LLiu Corp. net of both the discount and the credit for the returned merchandise The company returned defective merchandise to Kansas Corp, and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $4 22 24 6 The company purchased $9.000 of merchandise from Kansas Corp with terms of 1/10. n/50. FOB destination. invoice dated January 26. 26 The company sold merchandise with a $4.640 cost for $5.800 on credit to KC. Inc, invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days work at S125 per day Feb. 1 The company paid $2.475 cash to Hillside Mall for another three months rent in advance. 31 The company paid cash to Lyn Addie for 10 days work at S125 per day The company paid $2.475 cash to Hillside Mall for another three months' rent in advance. 3 Feb. 1 The company paid Kansas Corp, for the balance due, net of the cash discount, less the $496 amount in the credit memorandum 5 The company paid $600 cash to the local newspaper for an advertising insert in today's paper 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11 15 Santana Rey withdrew $4.300 cash from the company for personal use 23 The company sold merchandise with a $2.660 cost for $3.220 on credit to Delta Co. invoice dated February 23 26 The company paid cash to Lyn Addie for eight daysi work at $125 per day The company reimbursed Santana Rey for business automobile mileage (600 miles at S0.32 per mile) Mar. The company purchased $2.730 of computer supplies from Harris Office Products on credit, invoice dated March S 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 S5.260 cash from Dream. Inc. for computing services provided. 19 The company paid the full amount due to Harris Office Products, consisting of amounts createdion December 15 (of S1.100) and March S 24 The company billed Easy Leasing for $9.047 of computing services provided. 25 The company sold merchandise with a $2.002 cost for S2,800 on credit to Wildcat Services. invoice dated March 25 30 The company sold merchandise with a s1.04S cost for S2.220 on credit to IFM Company, invoice dated March 30 31 The company reimbursed Santana Rey for business automobile mileage (400 miles at $0.32 per mile). 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 S b. Three more months have expired since the company purchased its annual insurance policy at a $2.220 cost for 12 months of coverage e. Lyn Addie has not been paid for seven days of work at the rate of $125 per day d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is S825 e. Depreciation on the computer equipment for January I through March 31 is $1.250 f. Deprecration on the office equipment for January I through March 31 is g. The March 31 amount of merchandise inventory still available totals S704 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 s2.005. b. Three more months have expired since the company purchased its annual insurance policy at a S2.220 cost for 12 months of coverage c. Lyn Addie has not been paid for seven days of work at the rate of $125 per day d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $825 e. Depreciation on the computer equipment for January 1 through March 31 is $1.250. f. Depreciation on the office equipment for January 1 through March 31 is $400 g. The March 31 amount of merchandise inventory still available totals $704 Required Page 245 1. Prepare journal entries to record each of the January through March transactions 2. Post the journal entries in part I to the accounts in the company's general ledger. (Vore: Begin with the ledger's post-closing adjusted balances as of December 31. 2017. Check (21 Ending bolances at March 31 Cash. Ssaosz, salien. s192a0 3 Prepare a partial w rk sheet consisting of the first six columns(smalar to the one shown in Exhibit 5B.1 ) that includes the unadjusted trial balance, the March 31 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 (3) Unadj TE totals, $151557. Ag TB totals. $154082 single-step format. List all expenses without differentiating between selling ewpenses and general and administrative expenses (4) Net income. $18.833 4. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31. 2018. Use a 5. Prepare a statement of owner's equity (from the adjusted trial balance in part 3) for the three months ended March 31. 2018 (5) s Rey Copital (ot March 1999a 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31. 2018 (6) Totol ossets $120 268