in Chapter I and continues through most of the book. If previous chapaer seg S SERIAL PROBLEM Business Solutions P1 P2 P3 P4 erisl Pt compleoed, the serial problem can begin ar this point.) ated Business Solutions on October 1, 2017. The company has been successful. To accommodate the growth, the accounting system is modified to set custoner ' hcustomer. The following chart of accounts ncludes the account number used has grown. ccoanis balance as of December 31, 2017. Santana Rey decided to add a fourth digit with nt number that had been used for the single Accounts Receivable account. l any 6account inalns company to continue using the existing chart of accounts Account Ti Account Tie Dr.a $48.372 210 Wages payabie 236 Unearned computer services revenue 307 Common stock 318 Retained earnings... 319 Dividends 403 Computer services sevenue 413 Sales 414 Sales retures and allowancer 15 Sales discounts 502 Cost of goods sold 612 Depreciation expense-Office equipment S 500 1,500 3,000 7360 053 Easy Leasing.... 3,000 FM Co. Lia Corp Gomez Co. Della Co. 2.668 069 Dream inc 119 Merchendise inventory 126 Computer supplies 128 Prepaid insurance 580 1,665 825 8,000 Computer equipment 623 Wages expense... 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellianeous expenses 684 Repairs expense-Computer Prepaid rent 763 osce equipment Office equipment $ 400 167 Computer equipment 20,000 Accumulated depreciation- Computer equipment 1,250 1.100 201 Accounts payable in response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of l/10, n/30, FOB shipping point, to all customers who purchase this merchandise. on consulting fees. Additional accounts (Nos. 119,413, 414,415 to accommodate the company's new merchandising activities. Also, Business Solutions does not use reversing entries and, therefore, all revenue and expense accounts lave zero beginning balances as of January 1, 2018. Its transactions for January through March follow: n 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 acrued in the prior year SSantana Rey invested an additional $25,000 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. B shipping point, invoice dated January 7
