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. credit Debit $48,382 0 0 0 3, 110 0 2,779 0 0 0 660 1,935 925 8,010 5 260 20,100 Account Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IEM Co. 106.5 Liu Corp. 106.6 Gomes 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 307 Common stock 318 Retained earnings 319 Dividendo 403 Computer services revenue 413 Sales 414 Salon return and allowancen 415 Sales in counts 502 Cont of goods sold 612 Depreciation exponude orice equipment 613 Depreciation expenso-Computer equipment 629 Wages expenso 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expense 604 Repairs expense Computer 19 150 1,270 500 1. 120 73,040 8,260 0 0 0 0 9 0 0 O 0 0 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 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 wages payable that were accrued in the prior year. S santana Rey invested an additional $23,100 cash in the company in exchange for more common stock. 7 The company purchased $6,000 of merchandise from Kansas Corp. with term of 1/10, n/30) FOB shipping point, invoice dated January 7. 9 The company received $2,778 caith 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 $5,360, which is the total price of $6,780 less the advance payment of $1,420. The company debited Unearned Computer Services Revenue for $1,420. 13 The company sold merchandise with a retail value of $4,700 and a cost of 53,490 to Liu Corp. invoice dated January 13. 15 The company paid $630 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,180 cash from Delta Co. for computer services provided 17 The company paid Kansas Corp. for the invoice dated January 2, net of the discount. 20 The company gave a price reduction allowance) of $500 to Liu Corp.and credited Liu's account 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 Rantau Corp. and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $486. 26 The company purchand $9, 700 of merchandise from Kansas Corp. with term of 1/10, n/30, FOR destination, invoice dated January 26. 26 The company sold merchandise with a $4,570 cost for $5,830 on credit to KC Ine. invoice dated January 26 31 The company paid cash to lyn Addie tox 10 days work at $125 per day Fob. 1. The company paid $2,775 cash to Hillside Mai fot another three months cent in advance 3. The company paid Kansas Corp. for the balance du net of the cash discount, less the $486 credit from morchandise returned on January 24. 5 the company paid $460 cash to Facebook for an advertisement to appear on Pebruary 5 only, 11 The company received the balance duo from Alex'e Engineering Co. for os billed on January 11. 15 The company paid a $4.730 cash dividend 23 The company old merchandise with a $2,530 for $3,230 on credit to Delta coinvoice dated Pebruary 23 26 The company paid canh to Lyn Addis for eight days work at 9125 per day 27 The company reimbursed Santana Roy 5192 cash for business automobile mileage. The company recorded the reimbursement as " Rage Expande Mar The company purchased 3.790 of computer supplon from Barn office Products on credit with terms of n/30, ou destination invoice dated March 9 The company received the balance due from Deltaco for merchandise old on February 23. 11 The company paid $770 cash for minor repair to the company computer, 16 The company received os, 320 cash from Dream, Inc. for computing services provided 19 The company paid the full amount duo of 54,060 to Mars ottice Products consisting of a MA - February 23. 26 The company paid cach tolynAddie for eight day work at $125 per day. 27 The company reimbursed Santana Rey 5192 cash for business automobile mileage. The company recorded the retoursement as Mileage expense a The company purchased 52,790 of computer supplies from Harxis office Products on credit with terms of /30, POB destination, Invoice dated March 6. The company received the balance due from the co. for merchandise gold on February 23. 11 The company paid $770 cash for minor repairs to the company's computer. 16 The company received SS, 320 canh trom Dream, Inc. for computing services provided. 19 The company paid the toll amount due of $4,060 to Harri office Products consisting of amounts created on December 15 (of $1,270) and March 3. 24 The company billed Easy Leasing for $9,227 of computing services provided. 25 The company mold merchandise with a $2,152 cost for $2,030 on credit to Wildcat Services invoice dated March 25. 30 The company sold merchandise with a $1,158 cost for $2,410 on credit to IPM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $128 cash 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 $2105 b. Prepaid Insurance coverage of $645 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 $2.775 expired during this 3 month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1150 f. Depreciation on the office equipment for January 1 through March 31 $260 g. The March 31 amount of merchandise inventory still available totals $514 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. credit Debit $48,382 0 0 0 3, 110 0 2,779 0 0 0 660 1,935 925 8,010 5 260 20,100 Account Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IEM Co. 106.5 Liu Corp. 106.6 Gomes 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 307 Common stock 318 Retained earnings 319 Dividendo 403 Computer services revenue 413 Sales 414 Salon return and allowancen 415 Sales in counts 502 Cont of goods sold 612 Depreciation exponude orice equipment 613 Depreciation expenso-Computer equipment 629 Wages expenso 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expense 604 Repairs expense Computer 19 150 1,270 500 1. 120 73,040 8,260 0 0 0 0 9 0 0 O 0 0 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 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 wages payable that were accrued in the prior year. S santana Rey invested an additional $23,100 cash in the company in exchange for more common stock. 7 The company purchased $6,000 of merchandise from Kansas Corp. with term of 1/10, n/30) FOB shipping point, invoice dated January 7. 9 The company received $2,778 caith 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 $5,360, which is the total price of $6,780 less the advance payment of $1,420. The company debited Unearned Computer Services Revenue for $1,420. 13 The company sold merchandise with a retail value of $4,700 and a cost of 53,490 to Liu Corp. invoice dated January 13. 15 The company paid $630 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,180 cash from Delta Co. for computer services provided 17 The company paid Kansas Corp. for the invoice dated January 2, net of the discount. 20 The company gave a price reduction allowance) of $500 to Liu Corp.and credited Liu's account 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 Rantau Corp. and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $486. 26 The company purchand $9, 700 of merchandise from Kansas Corp. with term of 1/10, n/30, FOR destination, invoice dated January 26. 26 The company sold merchandise with a $4,570 cost for $5,830 on credit to KC Ine. invoice dated January 26 31 The company paid cash to lyn Addie tox 10 days work at $125 per day Fob. 1. The company paid $2,775 cash to Hillside Mai fot another three months cent in advance 3. The company paid Kansas Corp. for the balance du net of the cash discount, less the $486 credit from morchandise returned on January 24. 5 the company paid $460 cash to Facebook for an advertisement to appear on Pebruary 5 only, 11 The company received the balance duo from Alex'e Engineering Co. for os billed on January 11. 15 The company paid a $4.730 cash dividend 23 The company old merchandise with a $2,530 for $3,230 on credit to Delta coinvoice dated Pebruary 23 26 The company paid canh to Lyn Addis for eight days work at 9125 per day 27 The company reimbursed Santana Roy 5192 cash for business automobile mileage. The company recorded the reimbursement as " Rage Expande Mar The company purchased 3.790 of computer supplon from Barn office Products on credit with terms of n/30, ou destination invoice dated March 9 The company received the balance due from Deltaco for merchandise old on February 23. 11 The company paid $770 cash for minor repair to the company computer, 16 The company received os, 320 cash from Dream, Inc. for computing services provided 19 The company paid the full amount duo of 54,060 to Mars ottice Products consisting of a MA - February 23. 26 The company paid cach tolynAddie for eight day work at $125 per day. 27 The company reimbursed Santana Rey 5192 cash for business automobile mileage. The company recorded the retoursement as Mileage expense a The company purchased 52,790 of computer supplies from Harxis office Products on credit with terms of /30, POB destination, Invoice dated March 6. The company received the balance due from the co. for merchandise gold on February 23. 11 The company paid $770 cash for minor repairs to the company's computer. 16 The company received SS, 320 canh trom Dream, Inc. for computing services provided. 19 The company paid the toll amount due of $4,060 to Harri office Products consisting of amounts created on December 15 (of $1,270) and March 3. 24 The company billed Easy Leasing for $9,227 of computing services provided. 25 The company mold merchandise with a $2,152 cost for $2,030 on credit to Wildcat Services invoice dated March 25. 30 The company sold merchandise with a $1,158 cost for $2,410 on credit to IPM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $128 cash 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 $2105 b. Prepaid Insurance coverage of $645 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 $2.775 expired during this 3 month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1150 f. Depreciation on the office equipment for January 1 through March 31 $260 g. The March 31 amount of merchandise inventory still available totals $514