Required Information [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. Credit Number 101 106.1 106.2 105.3 106.4 106.5 106.6 106.7 106.0 106.9 119 126 128 131 163 164 167 168 201 210 236 307 318 319 403 413 414 ATE Account Title Canh Alex's Engineering Company Wildcat Services Easy Leasing ITM Company Liu Corporation Gomez Company Delta Company KC, Incorporated Dream, Incorporated Merchandise inventory Computer supplies Prepaid insurance Propaid rent office equipment Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividendo Computer services revenue Sales Sales returns and allowances ca Debit $ 48,372 0 0 0 3,000 0 2,668 0 0 0 0 580 1,665 825 8.000 $400 20,000 1.250 1.100 500 1,500 73,000 7,360 0 Prov 1 2 Gm 6 of 6 :: Next > 1,100 500 1,500 73,000 7,360 0 201 210 236 307 318 319 403 413 414 415 502 612 613 623 637 640 652 655 676 677 684 Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue Sales Sales returns and allowances Sales discounts Coat of goods sold Depreciation expense-office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer OOOOOOOOOOO 0 0 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 (Numbers. 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. January 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. January 5 Santana Rey invested an additional $25,000 cash in the company in exchange for more common stock. January 7 The company purchased $5,800 of merchandise from Kansas Corporation with terma of 1/10, n/30, POB shipping point, invoice dated January 7. January 9 The company received $2,668 cash from Gomez Company as full payment on its account. January 11 The company completed a five-day project for Alex's Engineering Company and billed it $5,500, which is the total price of $7,000 less the advance payment of $1,500. The company debited Unearned Computer Services Revenue for $1,500. January 13 The company sold merchandise with a retail value of $5,200 and a cost of $3,560 to tu Corporation, invoice dated January 13. January 15 The company paid $600 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,000 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 $500 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. which is the total price of $7,000 less the advance payment of $1,500. The company debited Unearned Computer Services Revenue for $1,500. January 13 The company sold merchandise with a retail value of $5,200 and a cont of $3,560 to Liu Corporation, invoice dated January 13. January 15 The company paid $600 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,000 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 $500 to Liu Corporation and credited Liu' 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 $496. January 26 The company purchased $9,000 of merchandise from Kansas Corporation with terms of 1/10, 1/30. FOB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,640 cost for $5,800 on credit to KC Incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addia for 10 days' work at $125 per day. Pebruary 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 $496 credit from merchandise returned on January 24. February 5 The company paid $600 cash to Facebook for an advertisement to appear on February 5 only. February 11 The company received the balance due from Alex's Engineering Company for teen biiled on January 11. February 15 The company paid a $4,800 cash dividend. February 23 The company sold merchandise with a $2,66c cont for $3,220 on credit to Delta Company, Invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $125 per day. February 27 The company reimbursed Santana Rey $192 canh for business automobile mileage. The company recorded the reimbursement as Mileage Expense. March & The company purchased $2,730 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 $960 cash for minor repairs to the company's computer. March 16 The company received $5,260 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $3,830 to Harris Office Products, consisting of amounts created on December 15 (of $1,100) and March 8. March 24 The company billed Easy Leasing for $9,047 of computing services provided. March 25 The company sold merchandise with a $2,002 cost for $2,800 on credit to Wildcat Services, invoice dated March 25. March 30 The company wold merchandise with a $1,048 cost for $2,220 on credit to IPM Company, Invoice dated March 30. March 31 The company reimbursed Santana Rey $128 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 a. The March 31 amount of computer supplies still available totals $2,005. b. Prepaid Insurance coverage of $555 expired during this three-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 three-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 5 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 $125 per day. Four of the five days relate to wages payable that were accrued in the prior year. Note: Enter debits before credits. Date General Journal Debit Credit January 04 Record entry Clear entry View general journal Required: 1. Prepare journal entries to record each of the January through March transactions. View transaction list Journal entry worksheet The company purchased $5,800 of merchandise from Kansas Corporation with terms of 1/10, 1/30, FOB shipping point, invoice dated January 7. Note: Enter debits before credits. General Journal Dobit Credit Date January 07 Record entry Clear entry View general Journal Required: 1. Prepare journal entries to record each of the January through March transactions. View transaction list Journal entry worksheet Record the cost of January 13 sale. Note: Enter debits before credits. Date General Journal Debit Credit January 13 Record entry Clear entry View general journal Required: 1. Prepare journal entries to record each of the January through March transactions. View transaction list Journal entry worksheet The company sold merchandise with a $2,002 cost for $2,800 on credit to Wildcat Services, Invoice dated March 25. Note: Enter debits before credits. General Journal Debit Credit Date March 25 Record entry Clear entry View general Journal Required: 1. Prepare journal entries to record each of the January through March transactions. View transaction list Journal entry worksheet of 6 !!! 403 413 414 415 502 612 613 623 637 640 652 655 676 677 684 Computer services revenue Sales Sales returns and allowances Sales discounts Cont of goods sold Depreciation expense-office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 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 (Numbers. 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. January 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. January 5 Santana Rey invested an additional $25,000 cash in the company in exchange for more common stock. January 7 The company purchased $5,800 of merchandise from Kansas Corporation with term of 1/10, n/30, FOR shipping point, invoice dated January 7. January 9 The company received $2,668 cash from Gomez Company as full payment on its account. January 11 The company completed a five-day project for Alex's Engineering Company and billed it $5,500, which is the total price of $7,000 less the advance payment of $1,500. The company debited Unearned Computer Services Rayenue for $1,500. January 13 The company sold merchandise with a retail value of $5,200 and a cost of $3,560 to Liu Corporation, invoice dated January 13. January 15 The company paid $600 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,000 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 $500 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 purchasen (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $496. January 26 The company purchased $9,000 of merchandise from Kansas Corporation with terms of 1/10, 1/30, TOB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,640 cost for $5,800 on credit to ke, Incorporated, invoice * WUYUR January 13 The company sold merchandise with a retail value of $5,200 and a cost of $3,560 to Liu Corporation, invoice dated January 13. January 15 The company paid $600 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,000 cash from Delta Company for computer services provided. January 17 The company paid Kannas Corporation for the invoice dated January 7, net of the discount. January 20 The company gave a price reduction (allowance) of $500 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 $496 January 26 The company purchased $9,000 of merchandise from Kansas Corporation with term of 1/10, n/30, POB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,640 cost for $5,800 on credit to ko, Incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days work at $125 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 $496 credit from merchandise returned on January 24 February 5 The company paid $600 cash to Facebook for an advertisement to appear on February 5 only. February 11 The company received the balance due from Alex Engineering Company for fees billed on January 11. February 15 The company paid a $4,800 cash dividend. February 23 The company sold merchandise with a $2,660 cost for $3,220 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $125 per day. February 27 The company reimbursed Santana Rey $192 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense. March 8 The company purchased $2,730 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 morehandise sold on February 23. March 11 The company paid $960 cash for minor repairs to the company's computer. March 16 The company received $5,260 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $3,830 to Harris Office Products, consisting of amounts created on December 15 (of $1,100) and March 8. March 24 The company billed Easy Leasing for $9,047 of computing services provided. March 25 The company sold merchandise with a $2,002 cost for $2,800 on credit to Wildcat Services, Invoice dated March 25. March 30 The company sold merchandise with a $1,048 cost for $2,220 on credit to IFM Company, invoice dated March 30. March 31 The company reimbursed Santana Rey $128 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 CD 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 adjusted balances as of December 31, 2021. Part 2 of 6 101: tanh Debit Credit Balance Dato December 31 100.11 Accounts Receivable Alox's Engineering Company Data Dablit Crodit Balance December 31 0 5 points + 106.2: Accounts Receivable Wildcat Services 106.3: Accounts Receivable Easy Leasing nai Alan ma 106.2: Accounts Recelvable-Wildcat Services Date Debit Credit Balance December 31 106.3: Accounts Recolvable Easy Leasing Dato Deblt Credit Balance 0 December 31 106.4: Accounts Recalvable IFM Company Date Debit Credit Balance December 31 106.5: Accounts Receivable--Llu Corporation Date Debit Credit Balance December 31 0 106.6: Accounts Receivablo Gomez Company Date Debit Credit Balance 106.7: Accounts Receivable Delta Company Dato Debit Credit Balance December 31 December 31 0 106.8: Accounts Receivable-KC, Incorporated Date Debit Credit Balance December 31 106.9: Accounts Receivable-Dream, Incorporated Dato Debit Credit Balance December 31 0 119: Merchandise Inventory Debit Credit 126: Computer Supplies Debit Credit Balance Balance Date December 31 Date December 31 0 128: Prepaid Insurance Debit Credit 131: Prepaid Rent Deblt Credit Balance Balance Date December 31 Date December 31 163: Office Equipment Dobit Credit Date December 31 Balance 164: Accumulated Depreciation Office Equipment Dato Dobit Credit Balance December 31 167: Computer Equipment Debit Credit Date Balance 168: Accumulated Depreciation Computer Equipment Date Debit Credit Balance December 31 December 31 201: Accounts Payable Debit Credit 210: Wages Payable Credit Balance Balance Date December 31 Debit December 31 238: Uneamed Computer Services Revenue Date Dobit Credit Balance December 31 307: Common stock Dobit Credit Balance Date December 31 319: Dividends 318: Retained earnings Debit Credit Balance Date Debit Credit Balanco Date December 31 403: Computer Services Revenue Debit Credit 413: Sales Debit Credit Date Balance Date Balance + 414: Sales Returns and Allowances Dobit Credit 415: Sales Discounts Debit Credit Data Balance Date Balance 3 > 3 3. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through dl, and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger Part 3 of 5 points Adjustments Adjusted Trial Balance Debit Credit Dobit Credit Book Print BUSINESS SOLUTIONS Partial Work Sheet March 31, 2022 Unndjusted Trial Number Account Title Balance Debit Credit 101 Cash 1061 Alex's Engineering Company 1082 Wildcat Services 106.3 Easy Leasing 106.4 FM Company 106.5 Lu Corporation 106.6 Gomez Company 106.7 Delta Company 1008 KG, Incorporated 1069 Dream, Incorporated 119 Merchandise Inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation Office equipment 167 Computer equipment 160 Accumulated depreciation - Computer equipment 201 Accounts payable 210 Wages payable Required information 163 164 167 168 201 210 236 307 318 319 403 413 414 Office equipment Accumulated depreciation Office equipment Computer equipment Accumulated depreciation Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue Sales Sales retums and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense Computer equipment Wages expenso Insurance expenso Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals 415 502 612 613 623 637 840 652 656 676 677 884 0 0 0 0 0 0 4 Part 4 of 5 4. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2022. (a) Use a single-step format. List all expenses without differentiating between selling expenses and general and administrative expenses (b) Use a multiple-step format that begins with gross sales service revenues plus gross product sales) and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Categorize the following accounts as selling expenses: Wages Expense, Mileage Expense, and Advertising Expense. Categorize the remaining expenses as general and administrative. 4 points Complete this question by entering your answers in the tabs below. Book Required 4 Required 4B Print References Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2022. (b) Use a multiple-step format that begins with gross sales (service revenues plus gross product sales) and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Categorize the following accounts as selling expenses: Wages Expense, Mileage Expense, and Advertising expense, categorize the remaining expenses as general and administrative. Show less BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 0 Net sales 0 0 Expenses BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 0 0 Net sales O Expenses Selling expenses 0 Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses OO 5 Check my work Part 5 of 6 recorded the reimbursement wileage pense. The following additional facts are available for preparing adjustments on March 31 pelor 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 three-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 three-month period. Depreciation on the computer equipment for January 1 through March 31 is $1250. Depreciation on the office equipment for January 1 through March 31 is $400 9. The March 31 amount of merchandise Inventory still available totals $704. 2 points Book 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31, 2022. Print BUSINESS SOLUTIONS Matement of Retained Earnings For Three Month Ended March 31, 2022 Retained earnings, December 31, 2021 Rece 0 Retained earnings, March 31, 2022 $ 0 6 i ne maren 31 amount or mercnanaise inventory still avandie totais >/04 Part 6 of 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2022. (Report Accounts receivable as a single amount.) BUSINESS SOLUTIONS Balance Sheet March 31, 2022 Assets Current lo 0 Torrents Plantas 0 0 0 Total $ Labilities Ourrentes Required information Total current assets Plant assets O 0 0 Total plant assets Total assets Liabilities Current liabilities Equity Total equity Total liabilities and equity $