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 include 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 a company to continue using the existing chart of accounts.

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 expires during this three-month period

C. Lynn Addie has not been paid for seven days of work at the rate of $205 per day

D. Prepaid rent of $2715 expired during this three month period

E. Depreciation on the computers equipment for January 1 through March 31 is $1230

F. Depreciation on the office equipment for January 1 through March 31 is $390

G. The March 31 amount of merchandise inventory still available total $674

Post the journal entries in part one to the accounts in the companies 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 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 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 Additional Information Below View transaction list View journal entry worksheet RE No Date General Journal Debit Credit Jan 04 Wages expense Wages payable Cash 205 820 1,025 2 Jan 05 23,500 Cash S. Rey. Capital 23,500 23 Jan 07 7,000 Merchandise inventory Accounts payable 7,000 Jan 09 2828 Cash Accounts receivable Gomez Co 2,828 J Jan 11 Accounts receivable. Alex's Engineering Co Unearned computer services revenue Computer services revenue 5.440 1.390 6,830 6 Jan 13 5,000 Accounts receivable Liu Corp Sales 5,000 Jan 13 3,550 Cost of goods sold Merchandise inventory 3,550 8 Jan 15 Merchandise inventory 620 Cash 620 Required information 9 Jan 16 4,060 Cash Computer services revenue 4,060 10 Jan 17 7,000 Accounts payable Merchandise inventory Cash 70 6,930 11 Jan 20 700 Sales returns and allowances Accounts receivable-Liu Corp 700 12 Jan 22 Cash Sales discounts Accounts receivable Liu Corp 4257 43 4,300 13 Jan 24 496 Accounts payablo Merchandise inventory 496 14 Jan 26 9.500 Merchandise Inventory Accounts payable 9,500 15 Jan 26 5,960 Accounts receivable-KC, Inc Sales 5,960 16 Jan 26 4,460 Cost of goods sold Merchandise inventory 4,460 17 Jan 31 2.050 Wages expense Cash 2,050 18 Feb 01 Prepaid rent 2.715 Cash 2.715 6 19 Feb 03 9,004 Accounts payable Merchandise inventory Cash 95 8,909 2 20 Feb 05 570 Advertising expense Cash 570 21 Feb 11 5,440 Cash Accounts receivable-Alex's Engineering Co. 5,440 N 22 Feb 15 4,7501 S. Rey. Withdrawals Cash 4.750 nces 23 Feb 23 Accounts receivable Delta Co Sales 3,390 3,390 S 24 Feb 23 2,510 Cost of goods sold Merchandise inventory 2,510 25 Feb 26 1.640 Wages expense Cash 1.640 26 Feb 27 192 Mileage expense Cash 192 27 Mar 08 2,870 Computer supplies Accounts payable 2,870 28 Mar 09 Cash 3,390