Santana Rey created Business Solutions on October 1, 2017. 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, 2017. 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
101	Cash	$	48,382
106.1	Alexs Engineering Co.		0
106.2	Wildcat Services		0
106.3	Easy Leasing		0
106.4	IFM Co.		3,120
106.5	Liu Corp.		0
106.6	Gomez Co.		2,678
106.7	Delta Co.		0
106.8	KC, Inc.		0
106.9	Dream, Inc.		0
119	Merchandise inventory		0
126	Computer supplies		710
128	Prepaid insurance		1,855
131	Prepaid rent		735
163	Office equipment		8,160
164	Accumulated depreciationOffice equipment				$	360
167	Computer equipment		21,800
168	Accumulated depreciationComputer equipment					1,240
201	Accounts payable					1,180
210	Wages payable					660
236	Unearned computer services revenue					1,400
301	S. Rey, Capital					82,600
302	S. Rey, Withdrawals		0
403	Computer services revenue					0
413	Sales					0
414	Sales returns and allowances		0
415	Sales discounts		0
502	Cost of goods sold		0
612	Depreciation expenseOffice equipment		0
613	Depreciation expenseComputer equipment		0
623	Wages expense		0
637	Insurance expense		0
640	Rent expense		0
652	Computer supplies expense		0
655	Advertising expense		0
676	Mileage expense		0
677	Miscellaneous expenses		0
684	Repairs expenseComputer		0

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 companys 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:

Jan.		4		The company paid cash to Lyn Addie for five days work at the rate of $165 per day. Four of the five days relate to wages payable that were accrued in the prior year.
		5		Santana Rey invested an additional $24,200 cash in the company.
		7		The company purchased $7,000 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.
		9		The company received $2,678 cash from Gomez Co. as full payment on its account.
		11		The company completed a five-day project for Alexs Engineering Co. and billed it $5,410, which is the total price of $6,810 less the advance payment of $1,400.
		13		The company sold merchandise with a retail value of $4,400 and a cost of $3,480 to Liu Corp., invoice dated January 13.
		15		The company paid $760 cash for freight charges on the merchandise purchased on January 7.
		16		The company received $4,080 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 $500 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $290 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products in cost of goods sold.)
		22		The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise.
		24		The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $486.
		26		The company purchased $9,400 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26.
		26		The company sold merchandise with a $4,520 cost for $5,900 on credit to KC, Inc., invoice dated January 26.
		31		The company paid cash to Lyn Addie for 10 days work at $165 per day.
Feb.		1		The company paid $2,455 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 $486 amount in the credit memorandum.
		5		The company paid $590 cash to the local newspaper for an advertising insert in todays paper.
		11		The company received the balance due from Alexs Engineering Co. for fees billed on January 11.
		15		Santana Rey withdrew $4,790 cash from the company for personal use.
		23		The company sold merchandise with a $2,660 cost for $3,350 on credit to Delta Co., invoice dated February 23.
		26		The company paid cash to Lyn Addie for eight days work at $165 per day.
		27		The company reimbursed Santana Rey for business automobile mileage (1,100 miles at $0.32 per mile).
Mar.		8		The company purchased $2,840 of computer supplies from Harris Office Products on credit, invoice dated March 8.
		9		The company received the balance due from Delta Co. for merchandise sold on February 23.
		11		The company paid $870 cash for minor repairs to the companys computer.
		16		The company received $5,450 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 $1,180) and March 8.
		24		The company billed Easy Leasing for $9,137 of computing services provided.
		25		The company sold merchandise with a $2,172 cost for $2,840 on credit to Wildcat Services, invoice dated March 25.
		30		The company sold merchandise with a $1,238 cost for $2,230 on credit to IFM Company, invoice dated March 30.
		31		The company reimbursed Santana Rey for business automobile mileage (700 miles at $0.32 per mile).

Assume that Santana Rey expands Business Solutions accounting system to include special journals. Required: 2. & 3. Enter the Business Solutions transactions for January through March in a sales journal, a cash receipts journal, a purchases journal, and a cash disbursements journal or a general journal. If the transaction does not specify the name of the payee, state not specified in the Payee column of the cash disbursements journal. The transactions on the following dates should be journalized in the general journal: January 5, 11, 20, 24 and March 24. Do not post the adjusting entries for the end of March.

SALES JOURNAL
Date	Account Debited	Accounts Receivable Dr. Sales Cr.	Cost of Goods Sold Dr. Inventory Cr.
Mar. 31	Totals	$0	$0

CASH RECEIPTS JOURNAL
Date	Account Credited	Cash Dr.	Sales Discount Dr.	Accounts Receivable Cr.	Services Revenue Cr.	Other Accts. Cr.	Cost of Goods Sold Dr. Inventory Cr.
Mar. 31	Totals	$0	$0	$0	$0	$0	$0

PURCHASES JOURNAL
Date	Account	Date of Invoice	Terms	Accounts Payable Cr.	Inventory Dr.	Computer Supplies Dr.	Other Accounts Dr.
Mar. 31	Totals			$0	$0	$0	$0

CASH DISBURSEMENTS JOURNAL
Date	Payee	Account Debited	Cash Cr.	Inventory Cr.	Other Accounts Dr.	Accounts Payable Dr.
Jan. 04
Mar. 31	Totals		$0	$0	$0	$0

Record the additional cash investment by Santana Rey.

DATE	General Journal	Debit	Credit
Jan 5th

Record the entry for completion of a five-day project for Alex's Engineering Co. and billing it $5,410, which is the total price of $6,810 less the advance payment of $1,400.

DATE	General Journal	Debit	Credit
Jan 11th

Record the entry for return of defective merchandise which had a sales price of $500 cost.

DATE	General Journal	Debit	Credit
Jan 20th

Record the entry for return of defective merchandise which had a $486 cost

DATE	General Journal	Debit	Credit
Jan 24th

Record the entry for providing computer services to Easy Leasing for $9,137.

DATE	General Journal	Debit	Credit
March 24th