Comprehensive Problem Seved 1 Part 1 of 6 8:33 points Santana Rey created Business Solutions on October 1, 2020. 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, 2020. 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. Naber 101 Cash Account Title 106.1 Alex's Engineering Company 106.2 wildcat Services 106.3 Easy Leasing 106.41PM Company 106.5 Liu Corporation" 106.6 Gonez Company 106.7 Delta Company 106.8 KC, Incorporated 106.9 Dream, Incorporated Merchandise inventory Computer supplies 119 126 128 Prepaid insurance 131 Prepaid rent 163 office equipment 164 Accumulated depreciation-office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 218 Wages payable 236 Unearned computer services revenue 387 Common stock 318 319 403 413 414 415 582 Retained earnings Dividends Computer services revenue Sales Sales returns and allowances. Sales discounts Cost of goods sold Mc Debit $48,472 Credit 3,090 2,800 0 0 620 2,097 855 8,050 $280 22,000 1,230 1,170 900 1,380 74,872 8,960 Next > Save & Ext Submit Check my work AUNTY PC company 106.8 KC, Incorporated 106.9 Dream, Incorporated 119 Merchandise inventory Computer supplies 126 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation-Office equipment. 167 Computer equipment 168 201 Accounts payable 210 Wages payable 236 307 Common stock 318 319 403 413 414 415 502 Cost of goods sold 612 613 623 637 640 Rent expense 652 655 Advertising expense Accumulated depreciation-Computer equipment Unearned computer services revenue Retained earnings Dividends Computer services revenue Sales Sales returns and allowances Sales discounts Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Computer supplies expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 620 2,097 855 8,050 $ 280 22,000 1,230 0 0 0 1,170 900 1,380 74,072 8,960 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. Prev 1 art 1 of 6 13 eBook Pri January 4 The company paid cash to Lyn Addie for five days' work at the rate of $225 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 $24,000 cash in the company in exchange for more common stock January 7 The company purchased $6,600 of merchandise from Kansas Corporation with terms of 1/10, n/38, FOB shipping point, invoice dated January 7.1 January 9 The company received $2,808 cash from Gonez Company as full payment on its account. January 11 The company completed a five-day project for Alex's Engineering Company and billed it $5,340, which is the total price of $6,720 less the advance payment of $1,388. The company debited Unearned Computer Services Revenue for $1,380. January 13 The company sold merchandise with retail value of $4,800 and a cost of $3,428 to Liu Corporation, invoice dated January 13. January 15 The company paid $630 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,170 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 28 The company gave a price reduction (allowance) of $600 to Liu Corporation and credited Liu's accounts receivable for that amount. 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 $486. January 26 The company purchased $9,100 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,560 cost for $5,848 on credit to KC, Incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days work at $225 per day. February 1 The company paid $2,565 cash to Hillside Mall for another three months' rent in advance. February 3 The company paid Kansas Corporation for the balance due, net of the cash discount, less the $486 credit from merchandise returned on January 24.1 February 5 The company paid $470 cash to Facebook for an advertisement to appear on February 5 only. February 11 The company received the balance due from Alex's Engineering Company for fees billed on January 11. February 15 The company paid a $4,718 cash dividend. February 23 The company sold merchandise with a $2,570 cost for $3,310 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days work at $225 per day. February 27 The company reimbursed Santana Rey $224 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,788 of computer supplies from Harris Office Products on credit with terms of n/38 FOR destination invoice dated March R Check my work Sub 1 Part 1 of 6 833 points January 31 The company paid cash to Lyn Addie for 10 days' work at $225 per day. February 1 The company paid $2,565 cash to Hillside Mall for another three months' rent in advance. February 3 The company paid Kansas Corporation for the balance due, net of the cash discount, less the $486 credit from merchandise returned on January 24. February 5 The company paid $470 cash to Facebook for an advertisement to appear on February 5 only. February 11 The company received the balance due from Alex's Engineering Company for fees billed on January 11. February 15 The company paid a $4,710 cash dividend. February 23 The company sold merchandise with a $2,570 cost for $3,310 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days work at $225 per day. February 27 The company reimbursed Santana Rey $224 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Markh The company purchased $2,780 of computer supplies from Harris Office Products on credit with teres of n/30, FOB destination, invoice dated March 8. March 9 The company received the balance due from Delta Company for merchandise sold on February 23. March 11 The company paid $810 cash for minor repairs to the company's computer. March 16 The company received $5,450 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $3,050 to Harris Office Products, consisting of amounts created on December 15 (of $1,170) and March 8. March 24 The company billed Easy Leasing for $9,227 of computing services provided. March 25 The company sold merchandise with a $2,042 cost for $2,890 on credit to Wildcat Services, invoice dated March 25, March 30 The company sold merchandise with a $1,188 cost for $2,410 on credit to IFM Company, invoice dated March 30. March 31 The company reimbursed Santana Rey $256 cash 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 financial statement preparation a. The March 31 amount of computer supplies still available totals $2,035. b. Prepaid Insurance coverage of $699 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $225 per day. d. Prepaid rent of $2,565 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1.230. Depreciation on the office equipment for January 1 through March 31 is $280. The March 31 amount of merchandise inuentan ctill available tntale 614 Check my work Mc Graw Hill