In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 1/10, 1/30, 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 $125 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $25,000 cash in the company. 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 $2,668 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 $5,5ee, which is the total price of $7,000 less the advance payment of $1,500. The company debited Unearned Computer Services Revenue for $1,500. 13 The company sold merchandise with a retail value of $5,200 and a cost of $3,568 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 The company gave a price reduction (allowance) of $500 to Liu Corp. and credited Liu's accounts receivable for that amount. 22 The company received the balance due from Liu Corp., net of the discount and the allowance. 24 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, was $496. 26 The company purchased $9,000 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. 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 credit from merchandise returned on January 24. 5 The company paid $600 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,800 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. Feb. 26 The company paid cash to Lyn Addie for eight days' work at $125 per day. 27 The company reimbursed Santana Rey $192 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,730 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. 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 $5,26e cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $3,830 to Harris office Products, consisting of anounts created on December 15 (of $1,100) and March 8. 24 The company billed Easy Leasing for $9,047 of computing services provided. 25 The company sold merchandise with a $2,882 cost for $2,800 on credit to Wildcat Services, Invoice dated March Next > 2 3 of 9 4 6 Prex 25. SAMSUNG nie me 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 31 The company reimbursed Santana Rey $128 for business automobile mileage. The company recorded the rembursement 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 $2.005. b. Prepaid Insurance coverage of $555 expired during this 3-month period, c. Lyn Addie has not been paid for seven days of work at the rate of $125 per day d. Prepaid rent of $2,475 expired during this 3-month period. 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 2. Post the journal entries in part 1 to the accounts in the company's general ledger. Note Begin with the ledger's post-closing adjusted balances as of December 31, 2019. 101 Cash Debit Credit Balance Date Dec 31 106.1 Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Dec. 31 11 Next > 2 3 4 - 6 of 9 6 o B e P e 9 earch SAMSUNG lon 236 Unearned Computer Services Revenue Debit Credit Balance Date Dec 31 Date Dec 31 301 S. Rey, Capital Debit Credit Balance 302 S. Rey, Withdrawals Debit Credit Date Balance 403 Computer Services Revenue Debit Credit Date Balance 413 Sales Debit Credit Date Balance 414 Sales Returns and Allowances Debit Credit Balance 502 Cost of Goods Sold Debit Credit 415 Sales Discounts Debit Credit Balance Date Date Balance 613 Depreciation Expense Computer Equipment Date Debit Credit Balance 612 Depreciation Expense-Office Equipment Date Debit Credit Balance Next > i SAMSUNG Search In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 1/10, 1/30, 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 $125 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $25,000 cash in the company. 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 $2,668 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 $5,5ee, which is the total price of $7,000 less the advance payment of $1,500. The company debited Unearned Computer Services Revenue for $1,500. 13 The company sold merchandise with a retail value of $5,200 and a cost of $3,568 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 The company gave a price reduction (allowance) of $500 to Liu Corp. and credited Liu's accounts receivable for that amount. 22 The company received the balance due from Liu Corp., net of the discount and the allowance. 24 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, was $496. 26 The company purchased $9,000 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. 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 credit from merchandise returned on January 24. 5 The company paid $600 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,800 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. Feb. 26 The company paid cash to Lyn Addie for eight days' work at $125 per day. 27 The company reimbursed Santana Rey $192 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,730 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. 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 $5,26e cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $3,830 to Harris office Products, consisting of anounts created on December 15 (of $1,100) and March 8. 24 The company billed Easy Leasing for $9,047 of computing services provided. 25 The company sold merchandise with a $2,882 cost for $2,800 on credit to Wildcat Services, Invoice dated March Next > 2 3 of 9 4 6 Prex 25. SAMSUNG nie me 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 31 The company reimbursed Santana Rey $128 for business automobile mileage. The company recorded the rembursement 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 $2.005. b. Prepaid Insurance coverage of $555 expired during this 3-month period, c. Lyn Addie has not been paid for seven days of work at the rate of $125 per day d. Prepaid rent of $2,475 expired during this 3-month period. 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 2. Post the journal entries in part 1 to the accounts in the company's general ledger. Note Begin with the ledger's post-closing adjusted balances as of December 31, 2019. 101 Cash Debit Credit Balance Date Dec 31 106.1 Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Dec. 31 11 Next > 2 3 4 - 6 of 9 6 o B e P e 9 earch SAMSUNG lon 236 Unearned Computer Services Revenue Debit Credit Balance Date Dec 31 Date Dec 31 301 S. Rey, Capital Debit Credit Balance 302 S. Rey, Withdrawals Debit Credit Date Balance 403 Computer Services Revenue Debit Credit Date Balance 413 Sales Debit Credit Date Balance 414 Sales Returns and Allowances Debit Credit Balance 502 Cost of Goods Sold Debit Credit 415 Sales Discounts Debit Credit Balance Date Date Balance 613 Depreciation Expense Computer Equipment Date Debit Credit Balance 612 Depreciation Expense-Office Equipment Date Debit Credit Balance Next > i SAMSUNG Search