Required

1. Prepare Journal Entries to record each of the January through March transactions.

Sarah Katz created Katz Solutions on October 1, 2015. 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, 2015. Sarah 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 Account TRe Account Tide Dr. C 0I Cash 106.1 Ale's Engineering Co 062 Wildcat Services 1063 Easy Leasing 064 IFM Co $ 500 1500 73.000 7360 $48,372 210 Wages payable 236 Uneaned computer services revenue 307 Common stock 18 Retained eaning 19 Dvidends 403 Computer services revenue 13 Sale 414 Sales recurs d a- ces 15 Sales discount 02 Cost of goods sold 12 Deprecation expense Office equipment s0 2668 106.7 Delta Co 068 KC Inc 06.9 Dream Inc 19 Merchandise iventory 26 Computer suapplies 28 Prepaid nsuranoe Computer eqipment 1645 825 23 Wages expense 37 Insurance expense 40 Rent expense 52 Computer supplies expense 63 Office aqupment 400 Office equpment 67 Computer equpment 5 Adveroing expense 76 Mleage expense 250 1,100 Computer eqiment 201 Accounts payabe In response to requests from customers, Sarah 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 (Nos. 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the company's new merchandising activities. Also, Katz Solutions does not use reversing entries and, therefore, all revenue and expense accounts have zero beginning balances as of January 1, 2016. Its transactions for January through March follow Jan. 4The 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 5Sarah Katz invested an additional $25,000 cash in the company in exchange for more common stock 7The company purchased $5,800 of merchandise from Kansas Corp, with terms of 1/10, n/30