Required information The following information applies to the questions displayed below utions on October 1, 2017. The company has been successful, and its list of customers Santana Rey created Business Solu has grown. To accommodate the growth, customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2017 Sa been used for the single Accounts Receivable account. This change allows the comp chart of accounts. the accounting system is modified to set up separate accounts for each antana Rey decided to add a fourth digit with a decimal point to the 106 account number that had any to continue using the existing Debit Credit $48,532 Account Title No 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. 16.9 Dream, Inc. 119 Merchandise inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 office equipment 3,850 2,738 630 1,854 915 8,148 Accumulated depreciation-Office equipment s 200 164 167 Computer equipment 168 nt 20,400 Accumulated depreciation-computer equipment 1,180 1370 163 office equipment 164 167 Computer equipment 168 8,140 Accumulated depreciation-Office equipment 200 20,400 Accumulated depreciation-Computer equipment 1,180 201 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 Repairs expense-Computer 1,270 748 1,458 74,929 7,398 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. 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 The company paid cash to Lyn Addie for five days' work at the rate of $185 per day. Four of the five days relate to wages payable that were accrued in the pror year. 5 Santana Rey invested an additional $24,500 cash in the company in exchange for more common stock. 7 The company purchased $7,580 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,738 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 $5,300, which is the total price of $6,756 less the advance payment of $1,45e. 13 The company sold merchandise with a retail value of $4,400 and a cost of $3,470 to Liu Corp., invoice dated January 13. 15 The company paid $700 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 $700 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $240 cost, is discarded. (The policy of Business 2 The company received the balance due from Liu Corp., net of both the discount and the 24 The company returned defective merchandise to Kansas corp. and accepted a credit against 26 The company purchased s10,000 of merchandise from Kansas corp. with terms of 1/10, n/30, 26 The cospany sold merchandise with a 54, s0o cost for $5,940 on credit to Kc, Inc., invoice 31 The company paid cash to Lyn Addie for 10 days' work at $185 per day. solutions is to leave the cost of defective products in cost of goods sold.) credit for the returned merchandise future purchases. The defective merchandise invoice cost, net of the discount, was $476. FOB destination, invoice dated January 26 dated January 26. Feb. 1 The company paid s2,745 cash to Hillside Mali for another three months rent in advance. 3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the 5 The company paid $540 cash to the local newspaper for an advertising insert in today's 11 The conpany received the balance due fron Alex's Engineering co. for fees billed on 15 The company paid $4,6se cash in dividends $476 amount in the credit memorandum paper. anuary 11. 15 The company paid $4,650 cash in dividends. 23 The company sold merchandise with a $2,6se cost for $3,240 on credit to Delta co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $185 per day 27 The company reimbursed Santana Rey for business automobile mileage (90e miles at se.32 per mile) Mar. 8 The company purchased $2,7se of computer supplies from Harris Office Products on credit, invoice dated March s. 9 The company received the balance due from Delta co. for merchandise sold on February 23. 11 The company paid $790 cash for minor repairs to the company's computer. 16 The company received $5,280 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 $1,270) and March 8 24 The company billed Easy Leasing for $9,107 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,860 on credit to wildcat Services, invoice dated March 25 invoice dated March 3 per mile) 30 The company sold merchandise with a $1,248 cost for $2,240 on credit to IFM Company, 31 The company reimbursed santana Rey for business automobile mileage (1,200 miles at e. 32 The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation. hree more months have expired since the company purchased its annual insurance policy at a $2.472 cost for 12 d. Three months have passed since any prepaid rent has been transferred to expense The monthly rent expense is $915. a. The March 31 amount of computer supplies still available totals $2,005 b. T months of coverage c. Lyn Addie has not been paid for seven days of work at the rate of $185 per day e. Depreciation on the computer equipment for January 1 through March 31 is $1,180 r. Depreciation on the office equipment for January 1 through March 31 is $200. g. The March 31 amount of merchandise inventory still available totals $544 Journal entry worksheet K1 2 3 4 5 67.. 37 The company paid cash to Lyn Addie for five days work at the rate of $185 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 Jan 04 Record entry Clear entry View general journal Journal entry worksheet K1 2 3 45 6 78 317 Santana Rey invested an additional $24,500 cash in the company in exchange for more common stock. Note: Enter debits before credits. Date General Journal Debit Credit Jan 05 Record entry Clear entry View general journal Journal entry worksheet 4 5 6 7 8 37 The company purchased $7,500 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7 Note: Enter debits before credits. Date General Journal Debit Credit Jan 07 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 67837 The company received $2,738 cash from Gomez Co, as full payment on its account. Note: Enter debits before credits Date General Journal Debit Credit Jan 09 Record entry Clear entry View general journal Journal entry worksheet K1 2 3 45 6 78 37 The company completed a five-day project for Alex's Engineering Co. and billed it $5,300, which is the total price of $6,750 less the advance payment of $1,450 Note: Enter debits before credits. Date General Journal Debit Credit Jan 11 Record entry Clear entry View general journal Journal entry worksheet 4 5 6 78 37 The company sold merchandise with a retail value of $4,400 and a cost of $3,470 to Liu Corp., invoice dated January 13. Note: Enter debits before credits. Date General Journal Debit Credit Jan 13 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 67 8 37 Record the cost of January 13 sale. Note: Enter debits before credits. Date General Journal Debit Credit Jan 13 Record entry Clear entry View general journal Journal entry worksheet K1 .5 6 7 8 91 1037 The company paid Kansas Corp. for the invoice dated January 7, net of the discount. Note: Enter debits before credits. Date General Journal Debit Credit Jan 17 Clear entry View general journal Record entry