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Santana Rey created Business Solutions on October 1, 2017. 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, 2017. 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.	Account Title	Debit			Credit
101	Cash	$	48,372
106.1	Alexs Engineering Co.		0
106.2	Wildcat Services		0
106.3	Easy Leasing		0
106.4	IFM Co.		3,080
106.5	Liu Corp.		0
106.6	Gomez Co.		2,758
106.7	Delta Co.		0
106.8	KC, Inc.		0
106.9	Dream, Inc.		0
119	Merchandise inventory		0
126	Computer supplies		730
128	Prepaid insurance		2,070
131	Prepaid rent		915
163	Office equipment		8,000
164	Accumulated depreciationOffice equipment				$	230
167	Computer equipment		20,100
168	Accumulated depreciationComputer equipment					1,190
201	Accounts payable					1,180
210	Wages payable					980
236	Unearned computer services revenue					1,460
307	Common stock					73,725
318	Retained earnings					7,260
319	Dividends		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. Also, Business Solutions does not use reversing entries and, therefore, all revenue and expense accounts have zero beginning balances as of January 1, 2018. Its transactions for January through March follow:

Jan.		4		The company paid cash to Lyn Addie for five days work at the rate of $245 per day. Four of the five days relate to wages payable that were accrued in the prior year.
		5		Santana Rey invested an additional $24,900 cash in the company in exchange for more common stock.
		7		The company purchased $6,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.
		9		The company received $2,758 cash from Gomez Co. as full payment on its account.
		11		The company completed a five-day project for Alexs Engineering Co. and billed it $5,380, which is the total price of $6,840 less the advance payment of $1,460.
		13		The company sold merchandise with a retail value of $4,100 and a cost of $3,450 to Liu Corp., invoice dated January 13.
		15		The company paid $710 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		Liu Corp. returned $500 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $230 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products in cost of goods sold.)
		22		The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise.
		24		The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $476.
		26		The company purchased $9,300 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26.
		26		The company sold merchandise with a $4,630 cost for $5,910 on credit to KC, Inc., invoice dated January 26.
		31		The company paid cash to Lyn Addie for 10 days work at $245 per day.
Feb.		1		The company paid $2,745 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 $476 amount in the credit memorandum.
		5		The company paid $450 cash to the local newspaper for an advertising insert in todays paper.
		11		The company received the balance due from Alexs Engineering Co. for fees billed on January 11.
		15		The company paid $4,660 cash in dividends.
		23		The company sold merchandise with a $2,540 cost for $3,280 on credit to Delta Co., invoice dated February 23.
		26		The company paid cash to Lyn Addie for eight days work at $245 per day.
		27		The company reimbursed Santana Rey for business automobile mileage (600 miles at $0.32 per mile).
Mar.		8		The company purchased $2,830 of computer supplies from Harris Office Products on credit, invoice dated March 8.
		9		The company received the balance due from Delta Co. for merchandise sold on February 23.
		11		The company paid $850 cash for minor repairs to the companys computer.
		16		The company received $5,350 cash from Dream, Inc., for computing services provided.
		19		The company paid the full amount due to Harris Office Products, consisting of amounts created on December 15 (of $1,180) and March 8.
		24		The company billed Easy Leasing for $9,157 of computing services provided.
		25		The company sold merchandise with a $2,012 cost for $2,820 on credit to Wildcat Services, invoice dated March 25.
		30		The company sold merchandise with a $1,168 cost for $2,320 on credit to IFM Company, invoice dated March 30.
		31		The company reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile).

The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation:

1. The March 31 amount of computer supplies still available totals $2,135.
2. Three more months have expired since the company purchased its annual insurance policy at a $2,760 cost for 12 months of coverage.
3. Lyn Addie has not been paid for seven days of work at the rate of $245 per day.
4. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $915.
5. Depreciation on the computer equipment for January 1 through March 31 is $1,190.
6. Depreciation on the office equipment for January 1 through March 31 is $230.
7. The March 31 amount of merchandise inventory still available totals $664.