1. For January through March 2020, prepare journal entries to record each of the above transactions for Computer Solutions and then post to the general ledger.
2. 
   
3. Using the 2019 Worksheet as a guide create a new worksheet for 2020. Transfer balances from the general ledger to the 2020 unadjusted trial balance.
4. 
   
5. Post General Journal, General Ledger, Trial Balance, Income Statement, Statement of Retained Earnings, and Balance sheet.

Raymond Santana created Computer Solutions on October 1, 2019. The company has been successful, and its list of customers has grown.

In response to requests from customers, R. Santana 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. Also, Business Solutions does not use reversing entries and, therefore, all revenue and expense accounts have zero beginning balances as of January 1, 2020. Its transactions for January through March follow:

Jan.		4		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.
		5		Ray Santana invested an additional $20,000 cash in the company in exchange for more common stock.
		7		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 $2,750 cash from Gomez Co. as full payment on its account.
		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.
		13		The company sold merchandise with a retail value of $5,200 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 $4,000 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 Computer Solutions is to leave the cost of defective products in cost of goods sold.)
		22		The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise.
		24		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 $496.
		26		The company purchased $8,000 of merchandise from Kansas Corp. with terms of 1/10, n/30, 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 $125 per day.
Feb.		1		The company paid $2,475 cash to Hillside Mall for another three months’ rent in advance.
		3		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		The company paid $4,800 cash in dividends.
		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 days’ work at $125 per day.
		27		The company reimbursed Ray Santana for business automobile mileage (600 miles at $0.32 per mile).
Mar.		8		The company purchased $2,730 of computer supplies from Harris Office Products on credit, invoice dated March 8.
		9		The company received the balance due from Delta Co. for merchandise sold on February 23. (Note discount period versus payment)
		11		The company paid $960 cash for minor repairs to the company’s computer.
		16		The company received $5,260 cash from Dream, Inc., for computing services provided.
		19		The company paid the full amount due to Harris Office Products, consisting of amounts created on December 15 (of $1,100) and March 8.
		24		The company billed West Leasing for $9,045 of computing services provided.
		25		The company sold merchandise with a $2,002 cost for $2,800 on credit to Wildcat Services, invoice dated March 25.
		30		The company sold merchandise with a $1,048 cost for $2,220 on credit to IFM Company, invoice dated March 30.
		31		The company reimbursed R. Santana for business automobile mileage (400 miles at $0.32 per mile).

Required:

1. For January through March 2020, prepare journal entries to record each of the above transactions for Computer Solutions and then post to the general ledger.
2. Using the 2019 Worksheet as a guide create a new worksheet for 2020. Transfer balances from the general ledger to the 2020 unadjusted trial balance.
3. Please Post General Journal, General Ledger, Trial Balance, Income Statement, Statement of Retained Earnings, and Balance sheet.

Below is the information recorded previously.

Post-closing Trial Balance No. Account Debit Credit 101 Cash 53,845 106.1 A/R - Alex's Engineering Co. A/R -Wildcat Services A/R -West Leasing 106.2 106.3 A/R -IFM Co. A/R -Liu Corp. 106.4 3,000 106.5 106.6 A/R -Gomez Co. A/R -Delta Co. A/R -KC, Inc. 2,750 106.7 106.8 A/R -Dream, Inc. Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable 106.9 119 126 580 128 1,665 131 825 163 6,000 164 300 167 24,000 168 1,500 201 1,100 210 500 1,500 Unearned computer services revenue Common stock Retained earnings 236 307 80,000 318 7,765 319 Dividends 403 Computer services revenue 413 Sales Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense 414 415 502 612 613 623 637 Insurance expense 640 Rent expense 652 Computer supplies expense Advertising expense Mileage expense 655 676 677 Miscellaneous expenses Repairs expense-Computer Income Summary Totals 684 92,665 92,665