Required information Skip to question 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 $ 48,562 106 1 Alexs Engineering Company 0 106 2 Wildcat Services 0 106 3 Easy Leasing 0 106 4 IFM Company 3,030 106 5 Liu Corporation 0 106 6 Gomez Company 2,678 106 7 Delta Company 0 106 8 KC, Incorporated 0 106 9 Dream, Incorporated 0 119 Merchandise inventory 0 126 Computer supplies 650 128 Prepaid insurance 2,016 131 Prepaid rent 825 163 Office equipment 8,050 164 Accumulated depreciationOffice equipment $ 330 167 Computer equipment 21,700 168 Accumulated depreciationComputer equipment 1,150 201 Accounts payable 1,260 210 Wages payable 740 236 Unearned computer services revenue 1,390 301 S Rey, Capital 82,641 302 S Rey, Withdrawals 0 403 Computer services revenue 0 413 Sales 0 414 Sales returns and allowances 0 415 Sales discounts 0 502 Cost of goods sold 0 612 Depreciation expenseOffice equipment 0 613 Depreciation expenseComputer equipment 0 623 Wages expense 0 637 Insurance expense 0 640 Rent expense 0 652 Computer supplies expense 0 655 Advertising expense 0 676 Mileage expense 0 677 Miscellaneous expenses 0 684 Repairs expenseComputer 0 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 companys new merchandising activities Its transactions for January through March follow January 4 The company paid cash to Lyn Addie for five days work at the rate of $185 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 $24,400 cash in the company January 7 The company purchased $6,400 of merchandise from Kansas Corporation with terms of 1 10, n 30, FOB shipping point, invoice dated January 7 January 9 The company received $2,678 cash from Gomez Company as full payment on its account January 11 The company completed a five day project for Alexs Engineering Company and billed it $5,400, which is the total price of $6,790 less the advance payment of $1,390 The company debited Unearned Computer Services Revenue for $1,390 January 13 The company sold merchandise with a retail value of $4,300 and a cost of $3,410 to Liu Corporation, invoice dated January 13 January 15 The company paid $740 cash for freight charges on the merchandise purchased on January 7 January 16 The company received $4,100 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 $700 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 $486 January 26 The company purchased $9,600 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 $4,550 cost for $5,810 on credit to KC, Incorporated, invoice dated January 26 January 31 The company paid cash to Lyn Addie for 10 days work at $185 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 $486 credit from merchandise returned on January 24 February 5 The company paid $570 cash to Facebook for an advertisement to appear on February 5 only February 11 The company received the balance due from Alexs Engineering Company for fees billed on January 11 February 15 S Rey withdrew $4,680 cash from the company for personal use February 23 The company sold merchandise with a $2,620 cost for $3,290 on credit to Delta Company, invoice dated February 23 February 26 The company paid cash to Lyn Addie for eight days work at $185 per day February 27 The company reimbursed Santana Rey $96 cash for business automobile mileage The company recorded the reimbursement as Mileage Expense March 8 The company purchased $2,750 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 $800 cash for minor repairs to the companys computer March 16 The company received $5,280 cash from Dream, Incorporated, for computing services provided March 19 The company paid the full amount due of $4,010 to Harris Office Products, consisting of amounts created on December 15 (of $1,260) and March 8 March 24 The company billed Easy Leasing for $9,057 of computing services provided March 25 The company sold merchandise with a $2,112 cost for $2,860 on credit to Wildcat Services, invoice dated March 25 March 30 The company sold merchandise with a $1,088 cost for $2,400 on credit to IFM Company, invoice dated March 30 March 31 The company reimbursed Santana Rey $224 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 The March 31 amount of computer supplies still available totals $2,045 Prepaid Insurance coverage of $672 expired during this three month period Lyn Addie has not been paid for seven days of work at the rate of $185 per day Prepaid rent of $2,475 expired during this three month period Depreciation on the computer equipment for January 1 through March 31 is $1,150 Depreciation on the office equipment for January 1 through March 31 is $330 The March 31 amount of merchandise inventory still available totals $524 2 Post the journal entries in part 1 to the accounts in the companys general ledger Note Begin with the ledgers post closing adjusted balances as of December 31, 2021

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Required information Skip to question [The following information applies to the questions displayed below.] Santana Rey created Business Solutions on October 1, 2021. The company

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[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	$ 48,562
106.1	Alexs Engineering Company	0
106.2	Wildcat Services	0
106.3	Easy Leasing	0
106.4	IFM Company	3,030
106.5	Liu Corporation	0
106.6	Gomez Company	2,678
106.7	Delta Company	0
106.8	KC, Incorporated	0
106.9	Dream, Incorporated	0
119	Merchandise inventory	0
126	Computer supplies	650
128	Prepaid insurance	2,016
131	Prepaid rent	825
163	Office equipment	8,050
164	Accumulated depreciationOffice equipment		$ 330
167	Computer equipment	21,700
168	Accumulated depreciationComputer equipment		1,150
201	Accounts payable		1,260
210	Wages payable		740
236	Unearned computer services revenue		1,390
301	S. Rey, Capital		82,641
302	S. Rey, Withdrawals	0
403	Computer services revenue		0
413	Sales		0
414	Sales returns and allowances	0
415	Sales discounts	0
502	Cost of goods sold	0
612	Depreciation expenseOffice equipment	0
613	Depreciation expenseComputer equipment	0
623	Wages expense	0
637	Insurance expense	0
640	Rent expense	0
652	Computer supplies expense	0
655	Advertising expense	0
676	Mileage expense	0
677	Miscellaneous expenses	0
684	Repairs expenseComputer	0

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 companys new merchandising activities. Its transactions for January through March follow.

January 4	The company paid cash to Lyn Addie for five days work at the rate of $185 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 $24,400 cash in the company.
January 7	The company purchased $6,400 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.
January 9	The company received $2,678 cash from Gomez Company as full payment on its account.
January 11	The company completed a five-day project for Alexs Engineering Company and billed it $5,400, which is the total price of $6,790 less the advance payment of $1,390. The company debited Unearned Computer Services Revenue for $1,390.
January 13	The company sold merchandise with a retail value of $4,300 and a cost of $3,410 to Liu Corporation, invoice dated January 13.
January 15	The company paid $740 cash for freight charges on the merchandise purchased on January 7.
January 16	The company received $4,100 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 $700 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 $486.
January 26	The company purchased $9,600 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 $4,550 cost for $5,810 on credit to KC, Incorporated, invoice dated January 26.
January 31	The company paid cash to Lyn Addie for 10 days work at $185 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 $486 credit from merchandise returned on January 24.
February 5	The company paid $570 cash to Facebook for an advertisement to appear on February 5 only.
February 11	The company received the balance due from Alexs Engineering Company for fees billed on January 11.
February 15	S. Rey withdrew $4,680 cash from the company for personal use.
February 23	The company sold merchandise with a $2,620 cost for $3,290 on credit to Delta Company, invoice dated February 23.
February 26	The company paid cash to Lyn Addie for eight days work at $185 per day.
February 27	The company reimbursed Santana Rey $96 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense."
March 8	The company purchased $2,750 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 $800 cash for minor repairs to the companys computer.
March 16	The company received $5,280 cash from Dream, Incorporated, for computing services provided.
March 19	The company paid the full amount due of $4,010 to Harris Office Products, consisting of amounts created on December 15 (of $1,260) and March 8.
March 24	The company billed Easy Leasing for $9,057 of computing services provided.
March 25	The company sold merchandise with a $2,112 cost for $2,860 on credit to Wildcat Services, invoice dated March 25.
March 30	The company sold merchandise with a $1,088 cost for $2,400 on credit to IFM Company, invoice dated March 30.
March 31	The company reimbursed Santana Rey $224 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.

The March 31 amount of computer supplies still available totals $2,045.

Prepaid Insurance coverage of $672 expired during this three-month period.

Lyn Addie has not been paid for seven days of work at the rate of $185 per day.

Prepaid rent of $2,475 expired during this three-month period.

Depreciation on the computer equipment for January 1 through March 31 is $1,150.

Depreciation on the office equipment for January 1 through March 31 is $330.

The March 31 amount of merchandise inventory still available totals $524.

2. Post the journal entries in part 1 to the accounts in the companys general ledger. Note: Begin with the ledgers post-closing adjusted balances as of December 31, 2021.