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 0 0 0 3,000 2,668 120 0 580 1.665 825 8.000 400 20,000 No. Recountitle 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 TIM Co. 106.5 tiu Corp 106.6 Conex Co. 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. 119 Merchandise Inventory 126 Computer supplies Prepaid insurance 10 Prepaid rent 163 office equipment 164 Accumulated depreciation office equipment 162 Computer equipment 168 Accumulated depreciation Computer equipment 201 Accounts payable 210 Wagon payable 236 Unearned computer services revenue 301 S. Rey, Capital 302 S. Rey, withdrawals 403 Computer Hervices revenue Sales Salos return and allowances 415 Salos discounts 502 Coat of goods sold 612 Depreciation expense office equipment 613 Depreciation expendo-computer equipment 623 Hages expense 637 Insurance axpense 640 Ront expenne 652 Conner un ansa 1.250 1.100 500 1,500 80.360 GOOG 655 624 677 684 Advertising expense Mileage expense Miscellaneous expenses Tepele expense-Computer 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. 4 The company paid cash to Tyn Addia for five days' work at the rate of $125 per day. Your of the five days relate to vagas payable that were accrued in the prior year. 5 Santana Rey invented an additional $25,000 cash in the company. 7 The company purchased $5,000 of merchandise from Kansas Corp. with terms of 1/10, n/30, Ton shipping point, invoice dated January 7. 9 The company received $2,668 cash from Gomes Co. as foll payment on ita account. 11 The company completed a five-day project for Alex's Engineering Co. and billed it 65,500, which is the total price of $7,000 lean 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 cont of $3,560 to Liu 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. hor computer services provided. 17 The company paid Kansas Corp. for the invoice datud January 7, net of the discount. 20 The company gave a price reduction (allowance) of $500 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 detective merchandise invoice cost, net of the discount, WAS $496. 26 The company purchased $9,000 of merchandise from Kansas Corp. with terms of 1/10, 1/30, TOD destination, invoice dated January 26. 26 The company sold merchandise with a $4,640 cout for $5,800 on credit to ke, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days work at $125 per day. Feb. 1 The company paid $2,475 cash to Hillside Mail for another three months rent in advance. 3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $496 credit from marchandise returned on January 24. S The company paid $600 cash to Pacebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for teos billed on January 11. 15 Santana Rey withdrew $4,800 cash from the company for personal use. A3 23 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 to Lyn Addie for eight days' work at $125 per day. 27 The company reimbursed Santana Ray 6192 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,730 of computer supplies from Barris Office Products on credit with terms of n/30, POB destination, Envoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $960 cash for minor repairs to the company's computer. 16 The company received $5,260 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $3,830 to Harris office Products, consisting of amounta created on December 15 (of $1,100) and March 8. 24 The company billed Easy Leasing for $9,047 of computing services provided. 25 The company sold merchandise with a $2,002 cout for $2,800 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,048 cost for $2,220 on credit to IPM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $124 for business automobile mileage. The company recorded the reimbursement as "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. 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 rope 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 $1,250. f. Depreciation on the office equipment for January 1 through March 31 is $400, 9. The March 31 amount of merchandise inventory still available totals $704. 5. Prepare a statement of owner's equity (from the adjusted trial balance in part 3) for the three months ended March 31, 2020, BUSINESS SOLUTIONS Partial Work Shoot March 31, 2020 Unadjusted Trial Balance Dr. Cr. 68,067 No. Adjustments Dr. Cr. 0 Adjusted Trial Balance Dr. Cr. 68,057 0 2,800 9,047 5,220 0 2,800 9,047 5,220 0 0 0 5,800 0 0 5,800 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 187 Computer equipment 168 Accumulated depreciation - Computer equipment 201 Accounts payable 210 Wages payable Unearned computer services revenue 846 3,310 1,665 3,300 8.000 142 1,305 655 2,475 704 2,005 1.110 825 8,000 400 400 800 20,000 20,000 1.250 1.250 0 of 2,500 ol 875 875 236 0 0 105,360 105,360 4,800 4,800 301 302 403 413 25,307 19,240 25,307 19,240 414 500 47 13,910 500 47 142 S. Rey, Capital S. Rey, Withdrawals Computer services revenue Sales Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies exponse Advertising expense Mileage expense Miscellaneous expenses Repairs expense Computer Totals 415 502 612 613 623 637 640 652 655 676 677 684 2.375 400 1,250 875 555 2,475 1,3051 14,052 400 1.250 3,250 555 2475 1,305 600 320 960 151,557 600 320 960 154,082 151,567 7,002 7502 154,082