ROOPA reg omenon appes to the questions on peu de 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 $48, 172 0 3.000 2.668 o SBB 1,665 825 3,000 $ 800 20,000 160 1.250 Account Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFH CO. 106.5 Liu Corp 106.6 Gomez Co. 105.7 Delta Co. 106.8 KC, Inc 105.9 Dream, Inc. 110 Merchandise Inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accomulated depreciation office equipment 167 Computer equipent Accumulated depreciation Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenu 301 S. Hey, Capital 302 5. Rey, withdrawals 403 Computer services revenue 41 Sales Sales returns and allowances 415 Sales discounts 502 Cost of goods sold Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment 623 Neces expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses Repairs expense-Computer 1.100 500 1,500 0,160 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 1 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, 7 The company purchased $5,000 of merchandise from Kansas Corp. with terms of 1/10, 1/30, For shipping point. Invoice dated January ". 9 The company received $2,668 cash from Govt Co. a full payment on its account 11 The company completed a five-day project for Alex's Engineering Co. and billed it $5,500, wiich is the total price of $7,000 less the advance payment of $1,500. The company debited Unearned Computer Services Revenge for $1.500 1. The company sold merchandise with a retail value of $5,200 and cost of $3,560 to Liu Corp., invoice doted January 11 15 The company paid for cash for freight charges on the merchandise purchased on January 7 If The company received 14,000 cash from Orit. Ca. for computer services provided. 17 The company paid Kansas Carp for the invoice dated January, net of the discount. itoitusasunts receivable for In response to requests from customers. S. Rey will begin selling computer software. The company will extend credit terms of 1/10./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 wapes payable that were accrued in the prior year 5 Santana Rey invested an additional $25,000 cash in the company 7 The company purchased $5,000 of merchandise from Kansas Carb with terms of 1/10, 9/10. FOB shipping point, invoice dated January 7. The company received $2,068 cash from one coat full payeent 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 $3,568 to Lu 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 w price reduction (allowance) of $500 to Llu Corp., and credited Liu's accounts receivable for that amount 22 The company received the balance due from E Corp. 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 59,000 of merchandise from Kanvas Corp. with terms of 1/10, 1/30, FOB destination, invoice dated Lanuary 26, 26 The company sold merchandise with a 54,640 cost for 55,800 on credit to KC, Inc., Invoice dated January 26. 11 The company paid cash to tyn Addie for 10 days work at $125 per day Feb. 1 The company paid 12,475 cash to Hillside all for another three months rent in advance. 1 The company paid Kansas Corp. for the balance due, net of the cash discount, less the 5496 credit from merchandise returned on January 24 5 The company paid $500 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,800 cash from the company for personal use. 21 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 te Lys Addie for eight days work at $125 per day. 27 The company reimbursed Santana Rey 5192 for business able mileage. The company recorded the reimbursement asileage Expense. Mar * The company purchased 12,730 of computer supplies from Harris Orice Products on credit with terms of n/30, FOR destination, Invoice dated March B. 9 The company received the balance due froe Delta Co for mercha old on February 11 The company paid $968 cash for siner repairs to the company's computer 16 The company received $5,268 Cash from Drew, Inc., for computine services provided 19 The company paid the full amount due of $3,50 to Harris Office Products consisting of counts created on December 15 (of $1,100) and March 24 The company billed Easy Leasing for 59,067 of computing services provided 25 The company told merchandise with a 12,002 cost for $2,600 on credit to Wildcat Services, Invoice date March 25. 30 The company cold merchandise with a $1,048 cost for $2.220 on credit to IFM Company. Invoice dated March 30. 11 The company rebused Santana Rey $128 for business outobilu sileage. The company recorded the reimbursement # 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. Prepeld Insurance coverage of 5555 expired during this 3-month period c. Lyn Addie has not been paid for seven days of work at the rate of 5125 per day d. Prepaid rent of $2.475 expired during this 3-month period .. Depreciation on the computer equipment for January through March 31 is $1250 1. Depreciation on the office equipment for January 1 through March 31 is $400. g. The Morch 31 amount of merchandise inventory still available totals $704 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2020 BUSINESS SOLUTIONS Assets 5 16 The company received 15,260 cash roe Dream, Inc., tor computing services provided 10 The company paid the full want due of $3,818 to Harris Office Products, consisting of counts trwa December 15 (of $1,100) and March 8. 24 The company hilled Easy Leasing for $9,647 of computing services provided 23 The company sold merchandise with a $2,002 cost for $7,00 on credit to Mildcat Services, Invoice da 3 The company sold merchandise with a $1,048 cost for 12,770 on credit to IFM Company, Invoice dated 31 The company reimbursed Santana Rey $128 for business automobile sileage. The company recorded the re as "Hile Expense." The following additional facts are available for preparing adjustments on March 31 prior to financial statement p a. The March 31 amount of computer supplies still available totals 52.005 b. Prepaid Insurance coverage of $555 expired during this 3-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 3-month period e. Depreciation on the computer equipment for January 1 through March 31 is $1250 f. Depreciation on the office equipment for January through March 31 is $400, 9. The March 31 amount of merchandise inventory still available totals 5704 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2020. BUSINESS SOLUTIONS Balance Sheet March 31, 2020 Assets Cutront assets 0 Total current assots Plant assets Office equipment net 0 0 Computer equipment, not Total plant assets Total assets 0 D Liabilities Current liabilities Equity Totalities and equity $ 0