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 $48,372 0 0 0 3,000 0 2,668 0 0 0 0 580 1,665 825 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. 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 Repaire expense-Computer 1,250 1,100 500 1,500 73,000 7,360 0 OO 0 0 0 0 o o o o o o o o 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 $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 $25,000 cash in the company in exchange for more common stock. 7 The company purchased $5,800 of merchandise from Kansas Corp. with terms of 1/10, n/30, POB shipping point, invoice dated January 7. 9 The company received $2,668 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 $5,500, 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. 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 $600 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, net of the discount. 20 The company gave a price reduction (allowance) of $500 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 $496. 26 The company purchased $9,000 of merchandise from Kansas Corp. with terms of 1/10, n/30, Ton destination, invoice dated January 26. 26 The company sold merchandise with a $4,640 cost for $5,800 on credit to xc, Inc., Invoice dated January 26. 31 The company paid cash to Lyn Addio for 10 days' work at $125 per day. Feb. 1 The company paid $2,475 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 $496 credit from merchandise returned on January 24. 5 The company paid 5600 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 $4,800 cash dividend. 23 The company sold merchandise with a $2,660 cost for $3,220 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 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8. The company purehand69 Mar. & The company purchased $2,730 of computer supplies from Barris Office Products on credit with terms The company received the balance due from Delte 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 Drean, Inc., for computing services provided. 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 . 24 The company billed Easy Leasing for $9,047 of computing services provided. 25 The company sold merchandise with a $2,002 cost for $2,800 on credit to Wildcat Services, Invoice dated March 25. 30 The company sold merchandise vith a $1,048 cost for $2,220 on credit to IFM Company. Invoice dated March 30. 31 The company reimbursed Santana Rey $128 cash for business automobile sileage. The company recorded the reimbursement as "Mileage Expense. The following additional facts are available for preparing adjustments on March 31 prlor to financial statement preparation: a. The March 31 amount of computer supplies still available totals $2,005. b. Prepold Insurance coverage of $555 expired during this three-month period. c. Lyn Addle 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. 1. 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. 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, 2019. 101 Cash Debit Credit Balance 106.1 Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Dec. 31 Date Dec. 31 0 Required information 106.2 Accounts Receivable Wildcat Services Dato Debit Credit Balance Dec. 31 106.3 Accounts Receivable Easy Leasing Date Debit Credit Balance Dec. 31 0 0 105.4 Accounts Receivable- IFM Co. Debit Credit Balance Date Dec. 31 106.5 Accounts Receivable-Llu Corporation Date Dobit Credit Balance Dec. 31 0 106.6 Accounts Receivablo Gomez Co. Debit Credit Balance 106.7 Accounts Receivable-Delta Co. Debit Credit Balance Dato Dec. 31 Date Dec. 31 0 106.8 Accounts Receivable KC, Inc. Debit Credit 106.9 Accounts Recolvable-Dream, Inc. Debit Credit Balance Balance Data Date Dec. 31 0 Dec 31 0 119 Merchandise Inventory Dobit Credit 126 Computer Supplies Debit Credit Balanco Balance Date Dec. 31 Dato Dec. 31 0 Required information 128 Prepaid Insurance Debit Credit 131 Prepaid Rent Debit Credit Balance Date Balance Date Dec. 31 Dec. 31 163 Office Equipment Debit Credit Balance 164 Accumulated Depreciation Office Equipment Date Debit Credit Balance Dec. 31 Date Dec. 31 167 Computer Equipment Debit Credit Balance 168 Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Dec. 31 Date Dec. 31 201 Accounts Payable Debit Credit 210 Wages Payable Debit Credit Balance Date Balance Date Dec. 31 Dec. 31 Required information 307 Common Stock Debit Credit Balance 236 Unearned Computer Services Revenue Dato Debit Credit Balance Dec. 31 Date Dec. 31 318 Retained Earnings Debit Credit 319 Dividends Debit Credit Balance Balance Date Date Dec. 31 413 Sales Debit Credit 403 Computer Services Revenue Debit Credit Balance Balance Date Date 414 Sales Returns and Allowances Debit Credit 415 Sales Discounts Debit Credit Date Balance Balance Date Required information 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 Balanco 676 Mileage Expense Debit Credit 677 Miscellaneous Expenses Debit Credit Date Balance Date Balance Required information 637 Insurance Expense Debit Credit 640 Rent Expense Debit Credit Date Balance Date Balance 652 Computer Supplies Expense Dobit 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 Dato Balance