Required information [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. Credit Debit $ 48, 422 580 2,070 885 8,200 $ 280 21,500 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 307 Common stock 318 Retained earnings 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 1,170 1,240 580 1,380 74,495 8,460 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. Its transactions for January through March follow: Jan. 4 The company paid cash to Lyn Addie for five days' work at the rate of $145 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $24,700 cash in the company in exchange for more common stock. 7 The company purchased $ 7,100 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,788 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 $5,460, which is the total price of $6,840 less the advance payment of $1,380. The company debited Unearned Computer Services Revenue for $1,380. 13 The company sold merchandise with a retail value of $4,100 and a cost of $3,540 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 $4,170 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 $400 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 $486. 26 The company purchased $9,600 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB oice dated January 26. 26 The company sold merchandise with a $4,580 cost for $5,880 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $145 per day. 1 The company paid $2,655 cash to Hillside Mall for another three months' rent in advance. 3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $486 credit from merchandise returned on January 24. 5 The company paid $410 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 The company paid a $4,640 cash dividend. 23 The company sold merchandise with a $2,590 cost for $3,330 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $145 per day. 27 The company reimbursed Santana Rey $192 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." 8 The company purchased $2,910 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 $820 cash for minor repairs to the company's computer. 16 The company received $5,310 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $4,150 to Harris Office Products, consisting of amounts created on December 15 (of $1,240) and March 8. 24 The company billed Easy Leasing for $9,237 of computing services provided. 25 The company sold merchandise with a $2,162 cost for $2,910 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,068 cost for $2,220 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $192 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Feb. Mar. 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 $2,195. b. Prepaid Insurance coverage of $690 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $145 per day. d. Prepaid rent of $2,655 expired during this 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,170. f. Depreciation on the office equipment for January 1 through March 31 is $280. g. The March 31 amount of merchandise inventory still available totals $594. 2. Post the journal entries in part 1 to the accounts in the company's general ledger. Note: Begin with the ledger's post-clos balances as of December 31, 2019. 101 Cash Debit Credit Balance Date Dec. 31 106.1 Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Dec. 31 106.2 Accounts Receivable-Wildcat Services Date Debit Credit Balance Dec. 31 106.3 Accounts Receivable-Easy Leasing Debit Credit Balance Date Dec. 31 106.4 Accounts Receivable IFM Co. Debit Credit Balance Date Dec. 31 106.5 Accounts Receivable-Liu Corporation Date Debit Credit Balance Dec. 31 106.6 Accounts Receivable-Gomez Co. Debit Credit Balance 106.7 Accounts Receivable-Delta Co. Debit Credit Balance Date Dec. 31 Date Dec. 31 106.8 Accounts ReceivableKC, Inc. Debit Credit 106.9 Accounts Receivable-Dream, Inc. Debit Credit Balance Balance Date Dec. 31 Date 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 Balance Balance Date Dec. 31 Date Dec. 31 163 Office Equipment Debit Credit Balance Date Dec. 31 164 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 Balance Date Dec. 31 Date Dec. 31 236 Unearned Computer Services Revenue Date Debit Credit Balance Dec. 31 307 Common Stock Debit Credit Balance Date Dec. 31 318 Retained Earnings Debit Credit 319 Dividends Debit Credit Balance Date Balance Date Dec. 31 403 Computer Services Revenue Debit Credit 413 Sales Debit Credit Date Balance Date Balance 414 Sales Returns and Allowances Debit Credit Date 415 Sales Discounts Debit Credit Balance Date Balance 502 Cost of Goods Sold Debit Credit 612 Depreciation Expense-Office Equipment Date Debit Credit Balance Date Balance 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 Date Balance 652 Computer Supplies Expense Debit Credit 655 Advertising Expense Debit Credit Date Balance Date Balance 676 Mileage Expense Debit Credit 677 Miscellaneous Expenses Debit Credit Date Balance Date Balance 684 Repairs Expense-Computer Debit Credit Date Balance