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Required informationSP 4 Serial Problem Business Solutions ( Algo ) LO P 1 , P 2 , P 3 , P 4 Skip to question
Required informationSP Serial Problem Business Solutions Algo LO P P P PSkip to questionThe following information applies to the questions displayed below.Santana Rey created Business Solutions on October 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 Santana Rey decided to add a fourth digit with a decimal point to the 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.Number Account Title Debit Credit Cash $ Alexs Engineering Company Wildcat Services Easy Leasing IFM Company Liu Corporation Gomez Company Delta Company KC Incorporated Dream, Incorporated Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciationOffice equipment $ Computer equipment Accumulated depreciationComputer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue Sales Sales returns and allowances Sales discounts Cost of goods sold Depreciation expenseOffice equipment Depreciation expenseComputer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expenseComputer In response to requests from customers, S Rey will begin selling computer software. The company will extend credit terms of n FOB shipping point, to all customers who purchase this merchandise. However, no cash discount is available on consulting fees. Additional accounts Numbers and are added to its general ledger to accommodate the companys new merchandising activities. Its transactions for January through March follow.January The company paid cash to Lyn Addie for five days work at the rate of $ per day. Four of the five days relate to wages payable that were accrued in the prior year.January Santana Rey invested an additional $ cash in the company in exchange for more common stock.January The company purchased $ of merchandise from Kansas Corporation with terms of n FOB shipping point, invoice dated January January The company received $ cash from Gomez Company as full payment on its account.January The company completed a fiveday project for Alexs Engineering Company and billed it $ which is the total price of $ less the advance payment of $ The company debited Unearned Computer Services Revenue for $January The company sold merchandise with a retail value of $ and a cost of $ to Liu Corporation, invoice dated January January The company paid $ cash for freight charges on the merchandise purchased on January January The company received $ cash from Delta Company for computer services provided.January The company paid Kansas Corporation for the invoice dated January net of the discount.January The company gave a price reduction allowance of $ to Liu Corporation and credited Liu's accounts receivable for that amount.January The company received the balance due from Liu Corporation, net of the discount and the allowance.January 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 $January The company purchased $ of merchandise from Kansas Corporation with terms of n FOB destination, invoice dated January January The company sold merchandise with a $ cost for $ on credit to KC Incorporated, invoice dated January January The company paid cash to Lyn Addie for days work at $ per day.February The company paid $ cash to Hillside Mall for another three months rent in advance.February The company paid Kansas Corporation for the balance due, net of the cash discount, less the $ credit from merchandise returned on January February The company paid $ cash to Facebook for an advertisement to appear on February only.February The company received the balance due from Alexs Engineering Company for fees billed on January February The company paid a $ cash dividend.February The company sold merchandise with a $ cost for $ on credit to Delta Company, invoice dated February February The company paid cash to Lyn Addie for eight days work at $ per day.February The company reimbursed Santana Rey $ cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense."March The company purchased $ of computer supplies from Harris Office Products on credit with terms of n FOB destination, invoice dated March March The company received the balance due from Delta Company for merchandise sold on February March The company paid $ cash for minor repairs to the companys computer.March The company received $ cash from Dream, Incorporated, for computing services provided.March The company paid the full amount due of $ to Harris Office Products, consisting of amounts created on December of $ and March March The company billed Easy Leasing for $ of computing services provided.March The company sold merchandise with a $ cost for $ on credit to Wildcat Services, invoice dated March March The company sold merchandise with a $ cost for $ on credit to IFM Company, invoice dated March March The company reimbursed Santana Rey $ cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense."The following additional facts are available for preparing adjustments on March prior to financial statement preparation.The March amount of computer supplies still available totals $Prepaid Insurance coverage of $ expired during this threemonth period.Lyn Addie has not been paid for seven days of work at the rate of $ per day.Prepaid rent of $ expired during this threemonth period.Depreciation on the computer equipment for January through March is $Depreciation on the office equipment for January through March is $The March amount of merchandise inventory still available totals $SP Serial Problem Part Algo Prepare a classified balance sheet from the adjusted trial balance as of March Report Accounts receivable as a single amount.
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