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 $48,432

106.1 Alexs Engineering Co. 0

106.2 Wildcat Services 0

106.3 Easy Leasing 0

106.4 IFM Co. 3,050

106.5 Liu Corp. 0

106.6 Gomez Co. 2,698

106.7 Delta Co. 0

106.8 KC, Inc. 0

106.9 Dream, Inc. 0

119 Merchandise inventory 0

126 Computer supplies 720

128 Prepaid insurance 1,695

131 Prepaid rent 785

163 Office equipment 8,100

164 Accumulated depreciationOffice equipment $ 230

167 Computer equipment 20,200

168 Accumulated depreciationComputer equipment 1,070

201 Accounts payable 1,180

210 Wages payable 620

236 Unearned computer services revenue 1,330

301 S. Rey, Capital 81,250

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 expenseComp. 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.

04 The company paid cash to Lyn Addie for five days work at the rate of $155 per day. Four of the five days relate to wages payable that were accrued in the prior year.

05 Santana Rey invested an additional $24,400 cash in the company.

07 The company purchased $6,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.

09 The company received $2,698 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 $5,300, which is the total price of $6,630 less the advance payment of $1,330.

13 The company sold merchandise with a retail value of $4,000 and a cost of $3,390 to Liu Corp., invoice dated January 13.

15 The company paid $770 cash for freight charges on the merchandise purchased on January 7.

16 The company received $4,130 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 $260 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 $496.

26 The company purchased $10,000 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 $4,460 cost for $5,980 on credit to KC, Inc., invoice dated January 26.

31 The company paid cash to Lyn Addie for 10 days work at $155 per day.

Feb.

01 The company paid $2,435 cash to Hillside Mall for another three months rent in advance.

03 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $496 amount in the credit memorandum.

05 The company paid $600 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 $4,670 cash from the company for personal use.

23 The company sold merchandise with a $2,520 cost for $3,360 on credit to Delta Co., invoice dated February 23.

26 The company paid cash to Lyn Addie for eight days work at $155 per day.

27 The company reimbursed Santana Rey for business automobile mileage (1,100 miles at $0.32 per mile).

Mar.

08 The company purchased $2,860 of computer supplies from Harris Office Products on credit, invoice dated March 8.

09 The company received the balance due from Delta Co. for merchandise sold on February 23.

11 The company paid $940 cash for minor repairs to the companys computer.

16 The company received $5,300 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 $9,067 of computing services provided.

25 The company sold merchandise with a $2,182 cost for $2,980 on credit to Wildcat Services, invoice dated March 25.

30 The company sold merchandise with a $1,198 cost for $2,240 on credit to IFM Company, invoice dated March 30.

31 The company reimbursed Santana Rey for business automobile mileage (500 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.

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Update: I solved it, was hung up on 3 CRJ entries and 1 GJ entry. Here is the solution:

Enter the Business Solutions transactions for January through March in a sales journal. S JOURNA Date Account Debited Accounts Receivable Dr. Cost of Goods Sold Dr Sale 1-13 1-26 2-23 3-25 Wildcat Services 3-30 iu KC, Inc Delta Co 4,000 5,980 3.360 2.980 2.240 3,390 4.460 2.520 2,182 1,198 IFM Mar. 31 Totals Enter the Business Solutions transactions for January through March in a cash receipts journal. SH RECEIPTS JOURN Date Account Created Cash Dr.Sal Accounts Services Other Cost of Goods Sold Discount Receivable Revenue Accts. Dr Inventory Dr. 2.698 3.300 3.360 Gomez Co Services Revenue 2.698 4,130 3.267 1-16 1-22 2-11 3-9 3-16 Dream Inc. (Services Revenue 4,130 Liu Alex's En Co Delta Co 3.360 5,300 5.300 Mar. 31 Totals Enter the Business Solutions transactions for January through March in a sales journal. S JOURNA Date Account Debited Accounts Receivable Dr. Cost of Goods Sold Dr Sale 1-13 1-26 2-23 3-25 Wildcat Services 3-30 iu KC, Inc Delta Co 4,000 5,980 3.360 2.980 2.240 3,390 4.460 2.520 2,182 1,198 IFM Mar. 31 Totals Enter the Business Solutions transactions for January through March in a cash receipts journal. SH RECEIPTS JOURN Date Account Created Cash Dr.Sal Accounts Services Other Cost of Goods Sold Discount Receivable Revenue Accts. Dr Inventory Dr. 2.698 3.300 3.360 Gomez Co Services Revenue 2.698 4,130 3.267 1-16 1-22 2-11 3-9 3-16 Dream Inc. (Services Revenue 4,130 Liu Alex's En Co Delta Co 3.360 5,300 5.300 Mar. 31 Totals