Required information Serial Problem Business Solutions LO P1, P2, P3, P4 The following information applies to the questions displayed below.) Santana Rey created Business Solutions on October 1, 2017. 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, 2017. 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. No. Debit $48,372 Credit 3, eee Account Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 106.5 Liu Corp. 106.6 Gomez Co. 186.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. 119 Merchandise inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent Office equipment 164 Accumulated depreciation-office equipment 167 Computer equipment Accumulated depreciation-Computer equipment Accounts payable 580 1,665 825 8,000 163 400 20,000 1,25e 1,100 ez Prey. 12 of 2 3 Next > 168 1.250 see 201 210 236 307 318 319 1,500 73.000 7,360 403 413 414 415 5e2 612 613 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 equipnent Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 6. 652 655 676 677 684 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 (Nos, 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the company's new merchandising activities. Also, Business Solutions does not use reversing entries and therefore, all revenue and expense accounts have zero beginning balances as of January 1, 2018. 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 days relate to wages payable that were accrued in the prior year. 5 Santana 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 tens of 1/10, 1/30, FB shipping point, invoice dated January 7. 9 The company received $2,668 cash from Gomez Co. as full payment on its account Prev TIC 1 2 of 2 3 Next > 9 The company received $2,668 cash from Gomez Co. as full payment 11 The company completed a five-day project for Alex's Engineering Cond billed is account price of $7,000 less the advance payment of $1,500 $5.500, which is the total 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 Business 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, $496. 26 The company purchased $9,000 of merchandise from Kansas Corp. with terms of 1/10, 1/30, FOB destination, invoice dated January 26. 26 The company sold merchandise with a $4,640 cost for 55,800 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 advanced 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 $2,66 cost for $3,22e 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 Santana Rey for business automobile mileage (600 miles at 50 per mile) 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 11 The company paid 5960 cash for sinor repairs to the company's computer 16 The company received 55,260 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 Easy Leasing for $9,847 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 31 The company reimbursed Santana Rey for business automobile mileage (400 miles at 10.32 per mile) Prey 12 of 2 Next > 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 Santana Rey for business automobile mileage (400 miles at $2.32 per sile). 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. Three more months have expired since the company purchased its annual Insurance policy at a $2,220 cost for 12 months of coverage. c. Lyn Addie has not been paid for seven days of work at the rate of $125 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $825. 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. Part 2 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, 2017.) 101 Cash Debit Credit 106.1 Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Date Balance Dec 31 Dec 31 arch Required information Debit Date Dec. 31 Credit Balance Debit Date Dec. 31 Credit Balance Prev 12 of 2 Next > Required information 106.2 Accounts Receivable-Wildcat Services Date Debit Credit Balance Dec. 31 106.3 Accounts Receivable-Easy Leasing Date Debit Credit Balance Dec 31 106.4 Accounts Receivable-IFM Co. Debit Credit Balance Date Dec. 31 106.5 Accounts Receivable Liu Corporation Date Debit Credit Balance 106.6 Accounts Receivable-Gomez Co. Debit Credit Balance 106.7 Accounts Receivable-Delta Co. Debit Credit Balance Date Date Dec 31 Dec. 31 106.8 Accounts Receivable--KC, Inc. Debit Credit 106.9 Accounts Receivable-Dream, Inc. Debit Credit Balance Date Balance Dec. 31 Dec 31 Prey 42 of 2 Next > TO Required information 106.8 Accounts Receivable-KC, Inc. Debit Deo Credit 106.9 Accounts Receivable --Dream, Inc. Debit Credit Balance Date Balance Date Dec. 31 Dec. 31 119 Merchandise Inventory Debit Credit 126 Computer Supplies Debit Credit Balance Balance Date Dec 31 Date Dec. 31 128 Prepaid Insurance Debit Credit 131 Prepaid Rent Debit Credit Date Balance Date Balance Required information 128 Prepaid Insurance Debit Credit Date Dec. 31 Balance 131 Prepaid Rent Debit Credit Date Dec. 31 Balance 163 Office Equipment Debit Credit Date Dec. 31 Balance 164 Accumulated Depreciation--Office Equipment Date Debit Credit Balance Dec 31 167 Computer Equipment Debit Credit Balance Date Dec. 31 168 Accumulated Depreciation - Computer Equipment Date Debit Credit Balance Dec 31 201 Accounts Payable Debit Credit 210 Wages Payable Debit Credit Balance Date Balance Date Dec. 31 Doc 31 Required information 201 Accounts Payable Debit Credit Date Balance 210 Wages Payable Debit Credit Date Dec 31 Balance Dec. 31 236 Unearned Computer Services Revenue Date Debit Credit Balance Dec. 31 307 Common Stock Debit Credit Date Balance Dec 31 318 Retained Earnings Debit Credit 319 Dividends Debit Credit Date Balance Date Dec. 31 Balance 7,360 1992 of 2 Next > Prey Required information 403 Computer Services Revenue Debit Credit Date Balance Date 413 Sales Debit Credit Balance 414 Sales Returns and Allowances Debit Credit 415 Sales Discounts Debit Credit Date Balance Date Balance 502 Cost of Goods Sold Debit Credit 612 Depreciation Expense-Office Equipment Date Debit Credit Balance Date Balance Me Required information 602 Cost of Goods Sold Debit Credit Date 612 Depreciation Expense-Office Equipment Date Credit Balance Balance Debit 613 Depreciation Expense-Computer Equipment Date Debit Credit Balance 623 Wages Expense Debit Credit Date Balance 637 Insurance Expense Debit Credit 640 Rent Expense Debit Credit Date Balance Balance 652 Computer Supplies Expense Debit Credit 655 Advertising Expense Debit Credit Date Balance Date Balance Prey 1 2 of 2 3 Next > Required information 652 Computer Supplies Expense Debit Credit Date Balance Date 656 Advertising Expense Debit Credit Balance 676 Mileage Expense Debit Credit 677 Miscellaneous Expenses Debit Credit Date Balance Date Balance 684 Repairs Expense-Computer Debit Credit Date Balance Prey 1 2 of 2 Next > Required information Serial Problem Business Solutions LO P1, P2, P3, P4 The following information applies to the questions displayed below.) Santana Rey created Business Solutions on October 1, 2017. 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, 2017. 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. No. Debit $48,372 Credit 3, eee Account Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 106.5 Liu Corp. 106.6 Gomez Co. 186.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. 119 Merchandise inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent Office equipment 164 Accumulated depreciation-office equipment 167 Computer equipment Accumulated depreciation-Computer equipment Accounts payable 580 1,665 825 8,000 163 400 20,000 1,25e 1,100 ez Prey. 12 of 2 3 Next > 168 1.250 see 201 210 236 307 318 319 1,500 73.000 7,360 403 413 414 415 5e2 612 613 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 equipnent Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 6. 652 655 676 677 684 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 (Nos, 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the company's new merchandising activities. Also, Business Solutions does not use reversing entries and therefore, all revenue and expense accounts have zero beginning balances as of January 1, 2018. 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 days relate to wages payable that were accrued in the prior year. 5 Santana 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 tens of 1/10, 1/30, FB shipping point, invoice dated January 7. 9 The company received $2,668 cash from Gomez Co. as full payment on its account Prev TIC 1 2 of 2 3 Next > 9 The company received $2,668 cash from Gomez Co. as full payment 11 The company completed a five-day project for Alex's Engineering Cond billed is account price of $7,000 less the advance payment of $1,500 $5.500, which is the total 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 Business 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, $496. 26 The company purchased $9,000 of merchandise from Kansas Corp. with terms of 1/10, 1/30, FOB destination, invoice dated January 26. 26 The company sold merchandise with a $4,640 cost for 55,800 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 advanced 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 $2,66 cost for $3,22e 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 Santana Rey for business automobile mileage (600 miles at 50 per mile) 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 11 The company paid 5960 cash for sinor repairs to the company's computer 16 The company received 55,260 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 Easy Leasing for $9,847 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 31 The company reimbursed Santana Rey for business automobile mileage (400 miles at 10.32 per mile) Prey 12 of 2 Next > 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 Santana Rey for business automobile mileage (400 miles at $2.32 per sile). 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. Three more months have expired since the company purchased its annual Insurance policy at a $2,220 cost for 12 months of coverage. c. Lyn Addie has not been paid for seven days of work at the rate of $125 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $825. 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. Part 2 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, 2017.) 101 Cash Debit Credit 106.1 Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Date Balance Dec 31 Dec 31 arch Required information Debit Date Dec. 31 Credit Balance Debit Date Dec. 31 Credit Balance Prev 12 of 2 Next > Required information 106.2 Accounts Receivable-Wildcat Services Date Debit Credit Balance Dec. 31 106.3 Accounts Receivable-Easy Leasing Date Debit Credit Balance Dec 31 106.4 Accounts Receivable-IFM Co. Debit Credit Balance Date Dec. 31 106.5 Accounts Receivable Liu Corporation Date Debit Credit Balance 106.6 Accounts Receivable-Gomez Co. Debit Credit Balance 106.7 Accounts Receivable-Delta Co. Debit Credit Balance Date Date Dec 31 Dec. 31 106.8 Accounts Receivable--KC, Inc. Debit Credit 106.9 Accounts Receivable-Dream, Inc. Debit Credit Balance Date Balance Dec. 31 Dec 31 Prey 42 of 2 Next > TO Required information 106.8 Accounts Receivable-KC, Inc. Debit Deo Credit 106.9 Accounts Receivable --Dream, Inc. Debit Credit Balance Date Balance Date Dec. 31 Dec. 31 119 Merchandise Inventory Debit Credit 126 Computer Supplies Debit Credit Balance Balance Date Dec 31 Date Dec. 31 128 Prepaid Insurance Debit Credit 131 Prepaid Rent Debit Credit Date Balance Date Balance Required information 128 Prepaid Insurance Debit Credit Date Dec. 31 Balance 131 Prepaid Rent Debit Credit Date Dec. 31 Balance 163 Office Equipment Debit Credit Date Dec. 31 Balance 164 Accumulated Depreciation--Office Equipment Date Debit Credit Balance Dec 31 167 Computer Equipment Debit Credit Balance Date Dec. 31 168 Accumulated Depreciation - Computer Equipment Date Debit Credit Balance Dec 31 201 Accounts Payable Debit Credit 210 Wages Payable Debit Credit Balance Date Balance Date Dec. 31 Doc 31 Required information 201 Accounts Payable Debit Credit Date Balance 210 Wages Payable Debit Credit Date Dec 31 Balance Dec. 31 236 Unearned Computer Services Revenue Date Debit Credit Balance Dec. 31 307 Common Stock Debit Credit Date Balance Dec 31 318 Retained Earnings Debit Credit 319 Dividends Debit Credit Date Balance Date Dec. 31 Balance 7,360 1992 of 2 Next > Prey Required information 403 Computer Services Revenue Debit Credit Date Balance Date 413 Sales Debit Credit Balance 414 Sales Returns and Allowances Debit Credit 415 Sales Discounts Debit Credit Date Balance Date Balance 502 Cost of Goods Sold Debit Credit 612 Depreciation Expense-Office Equipment Date Debit Credit Balance Date Balance Me Required information 602 Cost of Goods Sold Debit Credit Date 612 Depreciation Expense-Office Equipment Date Credit Balance Balance Debit 613 Depreciation Expense-Computer Equipment Date Debit Credit Balance 623 Wages Expense Debit Credit Date Balance 637 Insurance Expense Debit Credit 640 Rent Expense Debit Credit Date Balance Balance 652 Computer Supplies Expense Debit Credit 655 Advertising Expense Debit Credit Date Balance Date Balance Prey 1 2 of 2 3 Next > Required information 652 Computer Supplies Expense Debit Credit Date Balance Date 656 Advertising Expense Debit Credit Balance 676 Mileage Expense Debit Credit 677 Miscellaneous Expenses Debit Credit Date Balance Date Balance 684 Repairs Expense-Computer Debit Credit Date Balance Prey 1 2 of 2 Next >