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, 2019. 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, 2019. 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. Debit Credit $48,372 @ 3,888 @ 2,668 582 1,665 825 8,888 $ 480 20,880 No. 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. 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. 119 Merchandise inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation-office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 301 S. Rey, Capital 302 S. Rey, Withdrawals 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 1,250 1,100 500 1,500 80,360 a a e 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. 119,413414, 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 $25,00 cash in the company. 7 The company purchased $5,820 of merchandise from Kansas Corp. with terms of 1/10, n/38, 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 $7,02e 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 $6ee cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,202 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 $9,828 of merchandise from Kansas Corp. with terms of 1/10, n/38, FOB destination, invoice dated January 26. 26 The company sold merchandise with a $4,642 cost for $5,328 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 18 days' work at $125 per day. Feb. The company paid $2,475 cash to Hillside Mal for another three months' rent in advance. 3 The company paid Kansas Corp. for the balance duc, 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 $4,882 cash from the company for personal use. 23 The company sold merchandise with a $2,6GB cost for $3,228 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addic for cight 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 $2,738 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 $968 cash for minor repairs to the company's computer. 16 The company received $5,260 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 $1,182) and March 8. 24 The company billed Easy Leasing for $9,047 of computing services provided. 25 The company sold merchandise with a $2,262 cost for $2,828 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,248 cost for $2,228 on credit to IEM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $128 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 cmount 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. 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 balances as of December 31, 2019 101 Cash 106.1 Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Date Debit Credit Balance Dec. 31 Dec. 31 0 106.2 Accounts Receivable-Wildcat Services 106.3 Accounts Receivable-Easy Leasing Date Debit Credit Balance Date Debit Credit Baland Dec. 31 Dec. 31 0 105.4 Accounts ReceivableIFM Co. 106.5 Accounts Receivable-Llu Corporation Date Debit Credit Balance Date Debit Credit Balance Dec. 31 Dec. 31 0 106.6 Accounts Receivable-Gomez Co. 106.7 Accounts Receivable-Delta Co. Date Debit Credit Balance Date Debit Credit Balance Dec. 31 Dec. 31 0 106.8 Accounts Receivable-KC, Inc. 106.9 Accounts Receivable-Dream, Inc. Date Debit Credit Balance Date Debit Credit Balance Dec. 31 Dec. 31 119 Merchandise Inventory 126 Computer Supplies Debit Credit Date Debit Credit Balance Date Balance Dec. 31 Dec. 31 119 Merchandise Inventory Debit Credit 126 Computer Supplies Credit Date Balance Debit Balance Date Dec. 31 Dec. 31 128 Prepaid Insurance 131 Prepaid Rent Date Debit Credit Balance Date Debit Credit Balance Dec. 31 Dec. 31 163 Office Equipment Debit Credit Date Balance 164 Accumulated Depreciation-office Equipment Date Debit Credit Balance Dec. 31 Dec. 31 167 Computer Equipment Debit Credit 168 Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Date Balance Dec. 31 Dec. 31 201 Accounts Payable Debit Credit 210 Wages Payable Credit Date Balance Date Debit Balance Dec. 31 Dec. 31 236 Unearned Computer Services Revenue 301 S. Rey, Capital Date Debit Credit Balance Date Debit Credit Balance Dec. 31 Dec. 31 302 S. Rey. Withdrawale 403 Computer Services Revenue Date Debit Credit Balance Date Debit Credit Balance 302 S. Rey. Withdrawale 403 Computer Services Revenue Date Debit Credit Balance Date Debit Credit Balance 413 Sales 414 Sales Returna and Allowances Date Debit Credit Balance Date Debit Credit Balance 415 Sales Discounts 502 Coat of Goods Sold Date Debit Credit Balance Date Debit Credit Balance 613 Depreciation Expense-Computer Equipment 612 Depreciation Expense-Office Equipment Date Debit Credit Balance Date Debit Credit Balance 623 Wages Expense 637 Insurance Expense Date Debit Credit Balance Date Debit Credit Balance 640 Rent Expenso Debit Credit 652 Computer Supplies Expense Debit Credit Date Balance Date Balance 676 Mileage Expense 655 Advertising Expense Debit Credit Date Balance Dato Debit Credit Balance 677 Mlecellaneous Expenses 684 Repairs Expense-Computer Debit Credit Date Debit Credit Balance Date Balance