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 Debit $48,372 Credit e 3,eee 2.668 e @ 580 1,565 825 8.000 $ 400 20,000 No. Account Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 186.5. 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 21e Wages payable 236 Unearned computer services revenue 31 S. Rey, Capital S. Rey, withdrawals 403 Computer services revenue 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 672 Miscellaneous expenses 684 Repairs expense-Computer 1,250 1,100 500 1,500 80,360 In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit tern of 110./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 Addle 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. S Santana Rey invested an additional $25.000 cash in the company. 7 The company purchased 55,600 of merchandise from Kansas corp. with terms of 1/10, n/30, Fos shipping point, invoice dated January 7. The company received $2,665 cash from Gomez Co. as full payment on its account. 11 The company completed five-day project for Alex's Engineering Co. and billed it $5.500, which is the total Price of 57 1651 ot hit in earned iter Services Revenue for 684 Repairs expense-Computer In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 1/10, 1/30. 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 $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.cee cash in the company. 7 The company purchased $5,880 of merchandise from Kansas Corp. with terms of 1/10, 1/30, FOB shipping point, invoice dated January 7. 9 The company received $2,668 cash from Gones 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,eee 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 $3.560 to Liu Corp., invoice dated January 13 15 The company paid 5600 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, nt of the discount. 20 The company gave price reduction (allowance) of $500 te Liu Corp., and credited Liu's accounts receivable for that amount. 22 The company received the balance due from tiu Corp., net of the discount and the allowance. 24 The company returned defective serchandise 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 $9,000 of merchandise from Kansas Corp. with tens of 1/10, 1/30, FOB destination, invoice dated January 26. 26 The company sold merchandise with a $4,640 cost for 35,000 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 Feb. 1 The company paid $2,475 cash to Hillside Mail for another three months rent in advance. 3. The company paid Kansas Corp. for the balance due, 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 54,800 cash from the company for personal use. 23 The company sold merchandise vdth a $2,668 cost for $5,229 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 $192 for business automobile sileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8. The company purchased 52,730 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 $960 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 $3,838 to Harris Office Products, consisting of anounts created on December 15 (of $1,1ee) and March 8. 24 The company billed Easy Leasing for $9,647 of computing services provided. 25 The company sold merchandise with a $2.ee2 cost for $2.890 on credit to wildcat Services, invoice dated March 25 30 The company sold merchandise with a $1,848 cost for $2,228 on credit to IFH 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 amount 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 $1250 1. Depreciation on the office equipment for January through March 31 is $400 9. The March 31 amount of merchandise inventory still available totals $704 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 Debit $48,372 Credit e 3,eee 2.668 e @ 580 1,565 825 8.000 $ 400 20,000 No. Account Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 186.5. 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 21e Wages payable 236 Unearned computer services revenue 31 S. Rey, Capital S. Rey, withdrawals 403 Computer services revenue 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 672 Miscellaneous expenses 684 Repairs expense-Computer 1,250 1,100 500 1,500 80,360 In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit tern of 110./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 Addle 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. S Santana Rey invested an additional $25.000 cash in the company. 7 The company purchased 55,600 of merchandise from Kansas corp. with terms of 1/10, n/30, Fos shipping point, invoice dated January 7. The company received $2,665 cash from Gomez Co. as full payment on its account. 11 The company completed five-day project for Alex's Engineering Co. and billed it $5.500, which is the total Price of 57 1651 ot hit in earned iter Services Revenue for 684 Repairs expense-Computer In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 1/10, 1/30. 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 $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.cee cash in the company. 7 The company purchased $5,880 of merchandise from Kansas Corp. with terms of 1/10, 1/30, FOB shipping point, invoice dated January 7. 9 The company received $2,668 cash from Gones 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,eee 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 $3.560 to Liu Corp., invoice dated January 13 15 The company paid 5600 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, nt of the discount. 20 The company gave price reduction (allowance) of $500 te Liu Corp., and credited Liu's accounts receivable for that amount. 22 The company received the balance due from tiu Corp., net of the discount and the allowance. 24 The company returned defective serchandise 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 $9,000 of merchandise from Kansas Corp. with tens of 1/10, 1/30, FOB destination, invoice dated January 26. 26 The company sold merchandise with a $4,640 cost for 35,000 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 Feb. 1 The company paid $2,475 cash to Hillside Mail for another three months rent in advance. 3. The company paid Kansas Corp. for the balance due, 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 54,800 cash from the company for personal use. 23 The company sold merchandise vdth a $2,668 cost for $5,229 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 $192 for business automobile sileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8. The company purchased 52,730 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 $960 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 $3,838 to Harris Office Products, consisting of anounts created on December 15 (of $1,1ee) and March 8. 24 The company billed Easy Leasing for $9,647 of computing services provided. 25 The company sold merchandise with a $2.ee2 cost for $2.890 on credit to wildcat Services, invoice dated March 25 30 The company sold merchandise with a $1,848 cost for $2,228 on credit to IFH 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 amount 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 $1250 1. Depreciation on the office equipment for January through March 31 is $400 9. The March 31 amount of merchandise inventory still available totals $704