Partial Work Sheet March 31, 2022 Unadjusted Trial Balance Debit Credit 68,057 Number Account Title Adjustments Debit Credit Adjusted Trial Balance Debit Credit 68,057 101 106.1 106.2 106.3 106.4 2,800 9,047 5,220 2,800 9,047 5,220 106.5 106.6 106.7 106.8 5,800 5,800 106.9 119 142 126 846 3,310 1,665 3,300 8,000 1,305 555 704 2,005 1,110 825 128 131 2,475 163 8,000 164 400 400 800 167 20,000 20,000 168 1,250 1,250 2,500 201 210 Cash Alex's Engineering Company Wildcat Services Easy Leasing IFM Company Liu Corporation Gomez Company Delta Company KC, Incorporated Dream, Incorporated Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue Sales Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals 875 875 236 307 98,000 7,360 98,000 7,360 318 319 4,800 4,800 403 25,307 19,240 25,307 19,240 413 414 500 500 415 47 502 13,910 142 47 14,052 400 612 400 613 1,250 875 1,250 3,250 623 2,375 637 555 555 640 2,475 1,305 652 2,475 1,305 600 320 655 600 676 320 677 684 960 960 151,557 151,557 7,002 7,002 154,082 154,082 Partial Work Sheet March 31, 2022 Unadjusted Trial Balance Debit Credit 68,057 Number Account Title Adjustments Debit Credit Adjusted Trial Balance Debit Credit 68,057 101 106.1 106.2 106.3 106.4 2,800 9,047 5,220 2,800 9,047 5,220 106.5 106.6 106.7 106.8 5,800 5,800 106.9 119 142 126 846 3,310 1,665 3,300 8,000 1,305 555 704 2,005 1,110 825 128 131 2,475 163 8,000 164 400 400 800 167 20,000 20,000 168 1,250 1,250 2,500 201 210 Cash Alex's Engineering Company Wildcat Services Easy Leasing IFM Company Liu Corporation Gomez Company Delta Company KC, Incorporated Dream, Incorporated Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue Sales Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals 875 875 236 307 98,000 7,360 98,000 7,360 318 319 4,800 4,800 403 25,307 19,240 25,307 19,240 413 414 500 500 415 47 502 13,910 142 47 14,052 400 612 400 613 1,250 875 1,250 3,250 623 2,375 637 555 555 640 2,475 1,305 652 2,475 1,305 600 320 655 600 676 320 677 684 960 960 151,557 151,557 7,002 7,002 154,082 154,082 SP 4 Serial Problem Business Solutions (Static) LO P1, P2, P3, P4 [The following information applies to the questions displayed below.) Santana Rey created Business Solutions on October 1, 2021. 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, 2021. 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. Number Account Title Debit Credit 101 Cash $ 48,372 106.1 Alex's Engineering Company 0 106.2 Wildcat Services 0 106.3 Easy Leasing 0 106.4 IFM Company 3,000 106.5 Liu Corporation 0 106.6 Gomez Company 2,668 106.7 Delta Company 0 106.8 KC, Incorporated 0 106.9 Dream, Incorporated 0 119 Merchandise inventory 0 126 Computer supplies 580 128 Prepaid insurance 1,665 131 Prepaid rent 825 163 Office equipment 8,000 164 Accumulated depreciation-office equipment $ 400 167 Computer equipment 20,000 168 Accumulated depreciation-Computer equipment 1,250 201 Accounts payable 1,100 210 Wages payable 500 236 Unearned computer services revenue 1,500 307 Common stock 73,000 318 Retained earnings 7,360 319 Dividends 403 Computer services revenue 413 Sales 414 Sales returns and allowances 415 Sales discounts 502 Cost of goods sold 612 Depreciation expense-office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 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 (Numbers. 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. 0 OO OOOOOOOOOOOOO January 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. January 5 Santana Rey invested an additional $25,000 cash in the company in exchange for more common stock. January 7 The company purchased $5,800 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. January 9 The company received $2,668 cash from Gomez Company as full payment on its account. January 11 The company completed a five-day project for Alex's Engineering Company and billed it $5,500, which is the total price of $7,000 le33 the advance payment of $1,500. The company debited Unearned Computer Services Revenue for $1,500. January 13 The company sold merchandise with a retail value of $5,200 and a cost of $3,560 to Liu Corporation, invoice dated January 13. January 15 The company paid $600 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,000 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 20 The company gave a price reduction (allowance) of $500 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 $496. January 26 The company purchased $9,000 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 $4,640 cost for $5,800 on credit to KC, Incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days' work at $125 per day. February 1 The company paid $2,475 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 $496 credit from merchandise returned on January 24. February 5 The company paid $600 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 $4,800 cash dividend. February 23 The company sold merchandise with a $2,660 cost for $3,220 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $125 per day. February 27 The company reimbursed Santana Rey $192 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense.' March 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. March 9 The company received the balance due from Delta Company for merchandise sold on February 23. March 11 The company paid $960 cash for minor repairs to the company's computer. March 16 The company received $5,260 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $3,830 to Harris Office Products, consisting of amounts created on December 15 (of $1,100) and March 8. March 24 The company billed Easy Leasing for $9,047 of computing services provided. March 25 The company sold merchandise with a $2,002 cost for $2,800 on credit to Wildcat Services, invoice dated March 25. March 30 The company sold merchandise with a $1,048 cost for $2,220 on credit to IFM Company, invoice dated March 30. March 31 The company reimbursed Santana Rey $128 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 $2,005. b. Prepaid Insurance coverage of $555 expired during this three-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 three-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. SP 4 Serial Problem Part 5 (Static) 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31, 2022. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended March 31, 2022 Retained earnings, December 31, 2021 Add: Net income 0 Less: Dividends Retained earnings, March 31, 2022 CA 0