Required information [The following information applies to the questions displayed below.] Santana Rey created Business Solutions on October 1, 2020. 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, 2020. 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. 101 Cash Account Title 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. Merchandise inventory Computer supplies 119 126 128 Prepaid insurance 131 Prepaid rent 163 office equipment 164 Accumulated depreciation-office equipment 267 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings Debit Credit $48,572 0 0 0 3,100 0 2,888 0 0 0 0 600 1,881 885 8,050 $ 360 20,600 1,220 1,240 860 1,390 73,146 8,360 319 403 413 Dividends Computer services revenue Sales 414 Sales returns and allowances: Depreciation expense-office equipment Depreciation expense-Computer equipment Insurance expense 415 Sales discounts 502 Cost of goods sold 612 613 623 Wages expense 637 640 Rent expense 652 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer Computer supplies expense 0 0 0 0 0 0 0 0 0 0 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 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 $215 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $24,600 cash in the company in exchange for more common stock. 7 The company purchased $6,300 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.1 9 The company received $2,888 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 $5,330, which is the total price of $6,720 less the advance payment of $1,390. The company debited Unearned Computer Services Revenue for $1,390. 13 The company sold merchandise with a retail value of $4,600 and a cost of $3,500 to Liu Corp., invoice. dated January 13. 15 The company paid $610 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,160 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 $600 to Liu Corp. and credited Liu's accounts receivable for that amount.. 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 $9,400 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26. I 26 The company sold merchandise with a $4,630 cost for $5,890 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $215 per day. Feb. 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 $4,700 cash dividend. 23 The company sold merchandise with a $2,600 cost for $3,400 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $215 per day. 27 The company reimbursed Santana Rey $320 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." 8 The company purchased $2,920 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 $870 cash for minor repairs to the company's computer. 16 The company received $5,380 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $4,160 to Harris Office Products, consisting of amounts created on December 15 (of $1,240) and March 8.1 24 The company billed Easy Leasing for $9,097 of computing services provided. 25 The company sold merchandise with a $2,082 cost for $2,930 on credit to Wildcat Services, invoice. dated March 25. 30 The company sold merchandise with a $1,088 cost for $2,400 on credit to IFM Company, invoice dated: March 30. 31 The company reimbursed Santana Rey $288 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 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 $2,185. b. Prepaid Insurance coverage of $627 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $215 per day. d. Prepaid rent of $2,655 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,220. f. Depreciation on the office equipment for January 1 through March 31 is $360. g. The March 31 amount of merchandise inventory still available totals $694. Required: 1. Prepare journal entries to record each of the January through March transactions. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 37 The company paid cash to Lyn Addie for five days' work at the rate of $215 per day. Four of the five days relate to wages payable that were accrued in the prior year. Note: Enter debits before credits. Required: 1. Prepare journal entries to record each of the January through March transactions. View transaction list Journal entry worksheet < 2 3 4 5 6 7 8 37 The company paid cash to Lyn Addie for five days' work at the rate of $215 per day. Four of the five days relate to wages payable that were accrued in the prior year. Note: Enter debits before credits. Date Jan 04 General Journal Debit Credit Record entry Clear entry View general journal [The following information applies to the questions displayed below] Santana Rey created Business Solutions on October 1, 2020. 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, 2020. 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. 101 Cash 1061 Alex's Engineering Co. Account Tide Debit Credit $48,572 106.2 Wildcat Services 106.3 Easy Leasing 106.4 FM Co 3,100 106.5 Liu Corp. 106.6 Gomes Co 2,888 106.7 Deta Co. 106.8 KC, Inc. 106.9 Dream, Inc. 0 119 Merchandise inventory 126 Computer supplies 600 128 Prepaid insurance 1881 131 Prepaid rent 885 163 Office equipment 8,050 164 Accumulated depreciation-Office equipment $300 167 Computer equipment 20,600 168 Accumulated depreciation-Computer equipment 1,220 201 Accounts payable 1,240 210 Wages payable 860 236 Uneamed computer services revenue 1,390 307 Common stock 73346 318 Retained earnings 8,360 319 Dividends 0 403 Computer services revenue 413 Sales 414 Sales retums and allowances 415 Sales discounts 502 Cost of goods sold 612 613 623 Wages expense 637 640 Rent expense 652 Depreciation experse-Office equipment Depreciation expense-Computer equipment Insurance expense Computer supplies expense 0 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer In response to requests from customers, 5. 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. Jen 4 The company paid cash to Lam Audia for war at the rate of your the day rate to wages payable that were accrued in the prior year 5 Santana Rey invested an additional $24,500 cash in the company in exchange for more common stock 7 The company purchased $6,300 of merchandise from Kansas Corp. with terms of 110, n/30, FOB shipping point, invoice dated January 7 9The company received $2,888 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 $5.330, which is the total price of $6.720 less the advance payment of $1,390. The company debited Uneamed Computer Services Revenue for $1.390 13 The company sold merchandise with a retall value of $4,600 and a cost of $3,500 to Liu Corp. Invoice dated January 13 15 The company paid $610 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,360 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 $600 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 retumed 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 $436. 26 The company purchased $9,400 of merchandise from Kansas Corp, with terms of 110, n/30, FOB destination, invoice dated January 26. 26 The company sold merchandise with a $4,630 cost for $5,800 on credit to KC, Inc, Invoice dated January 26. 31 The company paid cash to Lyn Addle for 10 days' work at $215 per day. Feb. 1 The company paid $2,655 cash to Hillside Mail for another three months' rent in advance. 1. 3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $486 credit from merchandise retumed 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 $4,700 cash dividend. 23 The company sold merchandise with a $2.600 cost for $3,400 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $215 per day. 27 The company reimbursed Santana Rey $320 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mat 8 The company purchased $2,920 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 Delts Co. for merchandise sold on February 23. 11 The company paid $870 cash for minor repairs to the company's computer 16 The company received $5,380 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 $9,097 of computing services provided. 25 The company sold merchandise with a $2.082 cost for $2.930 on credit to Wildcat Services, Invoice dated March 25 30 The company sold merchandise with a $1,088 cost for $2,400 on credit to IFM Company, invoice dated March 30, 31 The company reimbursed Santana Rey $289 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." The following additional fects are available for preparing adjustments on March 31 prior to financial statement preparation. a. The March 31 amount of computer supplies still available totals $2,185. b. Prepaid Insurance coverage of $627 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $215 per day. d. Prepaid rent of $2,655 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,220. f. Depreciation on the office equipment for January 1 through March 31 is $360. g. The March 31 amount of merchandise Inventory still avellable totals $694. Award: 8.33 points Required: 1. Prepare joumal entries to record each of the January through March transactions. View transaction list Journal entry worksheet < 37 The company paid cash to Lyn Addie for five days' work at the rate of $215 per day. Four of the five days relate to wages payable that were accrued in the prior year. Note: Enter debits before credits Date Jan 04 General Journal Debit Credit Record entry Clear untry View general Journal