eral Problem 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 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, 2019 Santana Roy 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 Credit Deble $48,562 ENCO 3,120 Le Corp 2,678 Account TIE 301 Cash 106. Alex's Engineering Co. 2 locat Services 106.3 Easy Leasing 105.4 IFH 100.5 L 1066 Gone Co. 106.7 Deltaco 108 , 10.9 Drea, Inc 119 126 Merchandise Liventory Computer supplies Prepaid Insurance 131 Prepata rent 163 Office equipment 164 Acomated depreciatiotice it 167 16 Computerwort comporter 201 . Dayabile 236 warned computer services revenue 102 Catita 002 with Wals 407 730 2.07 8. $ 10 21,700 At pays 1,090 1.220 1,020 1.30 42,5 414 Sair turns and allowances Sales Cost of quo solo Det er Pure atlease ent Come AL His in stort s Rexha The Waxandra Prey De here to search 346 684 Rebis expense-Copter In response to requests from customers. S Rey will begin selling computer software. The company will extend credit terms of 170, 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 Jan. 4 The company paid cash to Lyn Addie for five days work at the rate of $255 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $23,400 cash in the company. 7 The company purchased $6,669 of merchandise froe Kansas Corp. with terms of 1/10, 1/3, Foe shipping point, Invoice dated January 7. 9 The company received $2,678 cash from Gomez Co. as full payment on its account 11 The company conpleted a five-day project for Alex's Engineering Co. and billed it $5,480, which is the total price of 56,810 less the advance payment of $1,330. The company debited Learned Computer Services Revenue for $1,338. 13 The company sold merchandise with a retail value of $4,6ee and cost of $3,190 to Liu Corp. Involce Gated January 13. 15 The comparty pald $730 cash for freight charges on the merchandise purchased on January 7. 16 The company received 14,010 cash from Delta Co. for computer services provided. 17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount. ze The company gave a price reduction (allowance) of $100 to Llu Corp., and credited Liu's accounts receivable for that amount 22 The company received the balance de fron Liu corp. net of the discount and the allowance 2 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, $496. 26. The company purchased $9,460 of merchandise from Kansas Corp. with terms of 1/10, 1/10, Foo destination, invoice dated January 26. 26 The company sold merchandise with a $4.590 cost for $5.00 on dit to KC, Inc., Imolce dated January 26 31 The company paid cash to Lyn Addle for 10 days wurka 5255 per day. 1. The compare paid $2,695 cash to side Mall for another the month rent in advance The company paid karisas Corp. for the balance duretut the cash discount, Tess the $496. credit from merchandise returned on January 24. The company paid $550 cash to Facebook for an advertisment to spear on rutruary 5 Only 11 The con received the balance due fron Alex Engine Cod for fort billed on January 11. 15 Santa Fey with $4,700 stron the com or personal 3 The company serchandise with a $2.540 Cort for $1.290 od to Delta Co.. Invald 21 26 The cost cast to Lyni Adele tight day work at 1255 per day 22 The cornbuse Santana ley 5152 for us to see the company recorded the Feintura Mile Expense 3. The comporte outer supplies from ottice Products are with me Odetinato involvedited March The compete baza de la Cour merchandise sold be I that can catch to the coman's the party w Orne for me 15. The cry the outwu 12 01 Presents de But 51 220) March 24 bill Easytor $9.29 2 Vold with us for et