Santana Ray created Business Solutions on October 1, 2019. The company has been successful, and it's 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 Ray 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. The change would allow the company to continue using the existing chart of accounts.
Required: Post to journal entries and part one to the accounts in the companies general ledger. Note: begin with the ledgers post closing adjusted balance as of December 31, 2019. (Record the transactions in the order presented. Do not skip rows.)
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 e 3,060 e 2,828 620 2,070 905 8,020 $ 390 21,300 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 301 S. Rey, Capital 302 S. Rey, Withdrawals 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 1,230 1,190 820 1,390 82,155 @ in response to requests from somers. S Rey will beginselling computer Share the company wil extend credit terms of 1/10, 1/30, FOB shipping point to 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 general ledger to accommodate the company's new merchandising activities is transactions for January through March lolow 20 4 The key paid cash to lyde for five days work at the rate or $205 percay: Mouve days relate als that were accrued in the prior year 5 Santara key invested an additional $2,500 cash in the company The como purchased 57,00 of merchandise froe Kansas Cira with term of 10 NOR shippott involved January The company received 3,20 cash from Gomez Coa full payment on the count 1 The comceny pleted five-day project for Alex's Engineering co and billed it which the total price of 10 less the advance payment of $1,300. The company exted here computer Services avenue for $300 12 The company told merchandise with retail: value of $5,000 and cost of $3,550 to Cu Corp., Invoice dated January 1 15 The company paid 5620 cash for Freight charges on the serchandise purchased on January 16 The company recebred $4.000 cash from Delta o for computer services provided 17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount 20 The company give price reduction allowance) of $700 to Llu Corp., and credited Lus accounts receivable for that amount 22 The company received the balance ou from Llo Corp., net of the discount and the allowance. 24 The company returned defective merchandise to Kansas Corp. and accepted credit against future orchaves (debited accounts payable). The defective merchandic Invoice cost, bet of the discount, was $496 26 The company purchased $9,500 of merchandise from Kansas Corp. with teres of 110, W3Foe destination, invoice dated January 36. 26. The company sold mechandise with a $4,460 ovt for 15.960 on credit to knvoice dated 26. 31: The company paid cash te Lyn Addie for 10 days work at 5205 per day 1 The company paid $2,219 cash to Hillside Mall Foothe three months rent in advance The company paid Kansas Corp. for the balance due, net of the cash discount. Less the $496 credit free terchand turned on January 24 The company paid 550 cash to Facebook for advertisement to appear on February only 12 The company received the balance de fron Alex's Engineering Co. for fees billed on by 15 Santan sy uithdrew $4,750 cash from the company for personal use. 23 The Cold merchandise with $2,500 cost for $1.290 on credit to Delta coinvoice dated by 26 The company paid ashlyn Adondoe wight cay work at $205 per day The company bursed Santana Hey $192 for business automobile llenge. The company recorded the risent ge The company orchase 2.0 or longer supplies from Maris Office Products on credit with term / destination, wice dated Machi 9. The company recoce due for Delta o for merchandise old on Yebruary 23 11 The charty 150 kos rowing into the company.com 10 The company, Inc. for Computing service provided. 19. The only the HF 14.00 tons Office Productions created on 15 of 11 24 ARY ille Main Toe ces provided Teh Plor R service och 23 odshandskas 20 cedit to complete som KRIO 2 3 5 OG News 37 The Commy Peirbursed Santana y sa bustres tomobile lead the company recorded the reinouseet as "Alleage Expense. 8 The Commy purchased $2,870 of computer supplies fece Harris office Produdes en kredit with terms of ./30, POE destination, Invoice dated Marcha The company received the lance due from DeltacoYor merchandise sold on February 23. 11 The company paid $880 cast for minor regies to the company's computer 16. The company received $5,310 cash from Dream, Inc., for computing Seevices provided, 19 The company paid the famount due of 54,060 to Harris office Products, consisting of mounts created on December 15 (of $1,190) and March 8. 24 The company billed Easy Leasing for $9,187 of computing services provided, 25 The company sold merchandise with a $2,062 cost for 52.020 on credit to idcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,108 cost for $2,286 on credit to IFM Company invoice dated March 20. 31 The company reimbursed Santana Hey $192 for business automobile leage. The company recorded the relebursement asileage 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 $2195 b. Prepaid Insurance coverage of $690 expired during this 3-month period c. Lyn Addie has not been paid for seven days of work at the rate of $205 per day d. Prepaid rent of $2.715 expired during this 3-month period e. Depreciation on the computer equipment for January 1 through March 31 is $1.230. f. Depreciation on the office equipment for January through March 3115 $390 g. The March 31 amount of merchandise inventory still available totals $674. 2. Post the journal entries in part 1 to the accounts in the company's general ledger. Note Begin with the ledgers post-closing adjusted balances as of December 31, 2019. (Record the transactions in the order presented. Do not skip rows.) 101 Cash Credit Doble Balance Date Dec. 31 106.1 Accounts Receivable-Alex Engineering Co Datu Debit Cradle Balance Dec 31 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. (Record the transactions in the order presented. Do not skip rows.) 101 Cash Debit Credit Date Balance 106.1 Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Dec 31 Dec 31 0 106.2 Accounts Receivable Wildcat Services Date Debit Credit Balance Dec 31 106.3 Accounts Receivable Easy Leasing Date Debit Credit Balance Dec 31 0 0 Required information 106.2 Accounts Receivable Wildcat Services Date Debit Credit Balance 106.3 Accounts Receivable Easy Leasing Date Debit Credit Balance Dec 31 Dec 31 0 0 106.4 Accounts Receivable IFM CO. Debit Credit Balance Date Dec 31 106.5 Accounts Receivable Liu Corporation Date Debit Credit Balance Dec 31 0 106.6 Accounts Recevable Gomez Co. Debit Credit Balance 106.7 Accounts Receivable-Delta Co. Debit Credit Balanco Dato Dec 31 Date Dec 31 0 106.8 Accounts Receivable-KC Inc. Debit Credit 106.9 Accounts Receivable --Dream, Inc. Debit Credit Balance Balance Date Dec 31 Date Dec 31 0 119 Merchandise Inventory Debit Credit 126 Computer Supplies Debit Credit Date Balance Balance Date Dec 31 Dec 31 9 2. Required information 119 Merchandise Inventory Debit Credit 126 Computer Supplies Debit Credit 2016 Balance Balance Date Dec 31 Date Dec 31 Book Print rences 128 Prepaid Insurance Debit Credit 131 Prepaid Rent Debit Credit Balance Balance Date Dec 31 Date Dec 31 163 Office Equipment Debit Credit Date Balance 154 Accumulated Depreciation Office Equipment Date Debit Credit Balance Dec 31 Dec. 31 167 Computer Equipment Debit Credit Balance Date Dec. 31 168 Accumulated Depreciation Computer Equipment Date Debit Credit Balance Dec 31 Dr Blat Required information af 167 Computer Equipment Debit Credit Balance Date Dec 31 160 Accumulated Depreciation Computer Equipment Date Debit Credit Balace Dec 31 1 OOK 201 Accounts Payable Debit Credit 210 Wages Payable Debit Credit Balance Date Date Dec 31 Balance Dec 31 ences 236 Uneamed Computer Services Revenue Date Debit Credit Balance Dec 31 301 5. Rey, Capital Debit Credit Balance Date Dec 31 302 S. Roy. Withdrawals Debit Credit 401 Computer Services Revenue Dett Code Date Balanco Date Balance 2 Required information of 6 623 Wagos Expense Debit Credit 637 Insurance Expense Deblo Credit Date Balance Date Balance ook 640 Rent Expense Debit Credit Date 652 Computer Supplies Expense Debit Credit Balance Dato Balance int rences 655 Advertising Expense Debit Credit Date 676 Mileage Expense Debit Credit Balance Date Balance 677 Miscellaneous Expenses Debit Credit 684 Repairs Expense Computer Debit Credit Date Balance Date Halance 101 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. No. Account Title Debit Credit Cash $48,372 186.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 3,060 106.5 Liu Corp. 106.6 Gomez Co. 2,828 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. 8 119 Merchandise inventory @ 126 Computer supplies 620 128 Prepaid insurance 2,070 131 Prepaid rent 905 163 Office equipment 8,020 164 Accumulated depreciation office equipment 167 Computer equipment 21,300 168 Accumulated depreciation-Computer equipment 1,230 201 Accounts payable 1,190 210 Wages payable 820 236 Unearned computer services revenue 1,390 301 5. Rey, Capital 82,155 302 5. Rey, Withdrawals 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 $ 390 OOOOOOOOOOOO 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. The company paid cash to Lyn Addie for five days work at the rate of $205 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $23,500 cash in the company. 7 The company purchased $7,000 of merchandise from Kansas Corp. with terms of 1/10, n/38, FOB shipping point, invoice dated January 7. 9 The company received $2,828 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 $5,440, which is the total price of $6,830 less the advance payment of $1,390. The company debited Unearned Computer Services Revenue for $1,390. 13 The company sold merchandise with a retail value of $5,808 and a cost of $3,558 to Liu Corp., invoice dated January 13 15 The company paid $620 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,068 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 $700 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 $9,589 of merchandise from Kansas Corp. with terns of 1/10, 1/30, FOB destination, Invoice dated January 26. 26 The company sold merchandise with $4,460 cost for 55,960 on credit to KC, Inc., Invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $205 per day. Feb. 1 The company paid $2,715 cash to Hillside Mal for another three months' rent in advance. 3 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 $570 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 Santana Rey withdrew $4,750 cash fron the company for personal use. 23 The company sold merchandise with $2,510 cost for $3,390 on credit to Delta Co., Invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $285 per day. 27 The company reimbursed Santana Rey $192 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." 8 The company purchased $2,870 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $880 cash for minor repairs to the company's computer. 16 The company received $5,310 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $4,860 to Harris Office Products, consisting of amounts created on December 15 (of $1,190) and March 8. 24 The company billed Easy Leasing for $9,187 of computing services provided. 25 The company sold merchandise with a $2,062 cost for $2,820 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,108 cost for $2,280 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $192 for business automobile mileage. The company recorded the reimbursement Mar. 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 $2.195. b. Prepaid Insurance coverage of $690 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of S205 per day d. Prepaid rent of $2,715 expired during this 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1.230. f. Depreciation on the office equipment for January 1 through March 31 is $390. g. The March 31 amount of merchandise inventory still available totals $674. 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. (Record the transactions in the order presented. Do not skip rows.) 101 Cash Debit Credit 106.1 Accounts Receivable-Alex's Engineering Co. Balance Date Debit Credit Balance Date Dec. 31 Dec 31 0 Required information 106.2 Accounts Receivable-Wildcat Services Date Debit Credit Balance Dec. 31 106.3 Accounts Receivable-Easy Leasing Date Debit Credit Balance Dec. 31 0 0 106.4 Accounts Receivable-IFM Co. Debit Credit Balance Date Dec 31 106.5 Accounts Receivable-Liu Corporation Date Debit Credit Balance Dec 31 0 106.6 Accounts Receivable-Gomez Co. Debit Credit Balance 106.7 Accounts Receivable-Delta Co. Debit Credit Balance Date Date Dec 31 Dec 31 0 106.8 Accounts Receivable--KC, Inc. Debit Credit 106.9 Accounts Receivable-Dream, Inc. Debit Credit Balance Balance Date Dec. 31 Date Dec. 31 0 119 Merchandise Inventory Debit Credit 126 Computer Supplies Debit Credit Date Balance Date Balance Dec 31 Dec 31 Required information 119 Merchandise Inventory Date Debit Credit Dec 31 126 Computer Supplies Debit Credit Balance Balance Date Dec 31 128 Prepaid Insurance Debit Credit 131 Prepaid Rent Debit Credit Balance Date Balance Date Dec. 31 Dec 31 163 Office Equipment Debit Credit 164 Accumulated Depreciation-Office Equipment Date Debit Credit Balance Date Balance Dec. 31 Dec 31 167 Computer Equipment Debit Credit Balance Date Dec 31 168 Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Dec 31 Required information 167 Computer Equipment Debit Credit Balance Date Dec 31 168 Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Dec. 31 201 Accounts Payable Debit Credit 210 Wages Payable Debit Credit Date Balance Date Balance Dec 31 Dec 31 236 Unearned Computer Services Revenue Date Debit Credit Balance Dec. 31 301 S. Rey, Capital Debit Date Credit Balance Dec 31 302 S. Rey, Withdrawals Debit Credit 403 Computer Services Revenue Debit Credit Date Balance Date Balance A12 Gala 414 Caloe Daunend All RACE Required information 413 Sales Debit Credit 414 Sales Returns and Allowances Debit Credit Date Balance Date Balance 415 Sales Discounts Debit Credit 502 Cost of Goods Sold Debit Credit Date Balance Date Balance 612 Depreciation Expense-Office Equipment Date Debit Credit Balance 613 Depreciation Expense-Computer Equipment Date Debit Credit Balance 623 Wages Expense Debit Credit 637 Insurance Expense Debit Credit Date Balance Date Balance 640 Rent Expense Debit Credit 652 Computer Supplies Expense Debit Credit Date Balance Date Balance Wanna HOR NO YANG Required information 623 Wages Expense Debit Credit 637 Insurance Expense Debit Credit Date Balance Date Balance 640 Rent Expense Debit Credit 652 Computer Supplies Expense Debit Credit Date Balance Date Balance 655 Advertising Expense Debit Credit 676 Mileage Expense Debit Credit Date Balance Date Balance 677 Miscellaneous Expenses Debit Credit 684 Repairs Expense-Computer Debit Credit Date Balance Date Balance
