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 $48,522 0 0 0 3,020 0 2,798 0 0 0 0 630 1,695 655 8, 150 $ 340 No. 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 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 301 S. Rey, Capital 302 S. 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 21,200 1,180 1,170 589 1,380 82,020 0 0 0 0 0 0 0 0 0 637 640 652 655 676 677 684 Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 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. 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 $145 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $23,400 cash in the company. 7 The company purchased $7,700 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,798 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 $5,310, which is the total price of $6,690 less the advance payment of $1,380. The company debited Unearned Computer Services Revenue for $ 1,380. 13 The company sold merchandise with a retail value of $4,600 and a cost of $3,550 to Liu Corp., invoice dated January 13. 15 The company paid $790 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,140 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 $9,500 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 $4,490 cost for $6,000 on credit to kc, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $145 per day. Feb. Mar. 1 The company paid $2,375 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 $496 credit from merchandise returned on January 24. 5 The company paid $540 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 $4,660 cash from the company for personal use. 23 The company sold merchandise with a $2,550 cost for $3,270 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $145 per day. 27 The company reimbursed Santana Rey $256 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." 8 The company purchased $2,850 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 $860 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 $4,020 to Harris Office Products, consisting of amounts created on December 15 (of $1,170) and March 8. 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,032 cost for $2,870 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,118 cost for $2,300 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $320 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Assume that Santana Rey expands Business Solutions' system to include special journals. Required: 2. & 3. Enter the Business Solutions transactions for January through March in a sales journal, cash receipts journal, purchases journal, and cash payments journal or general journal. If the transaction does not specify the name of the payee, state "not specified in the Payee column of the cash payments journal. The transactions on the following dates should be journalized in the general journal: January 5, 11, 20, and 24 and March 24. Do not post the adjusting entries for the end of March. Sales Cash Receipts Purchases Cash Payments General Journal Enter the Business Solutions transactions for January through March in a cash payments journal. If the transaction does not specify th payee, state "not specified" in the Payee column of the cash payments journal. CASH PAYMENTS JOURNAL Date Payee Account Debited Cash Cr. Inventory Cr. Other Accounts Dr. Accounts Payable Dr. Jan. 04 Lyn Addie >$ 725 $ 145 580 790 790 Jan. 15 Jan. 17 Jan. 31 77 $ 7,700 7,623$ 1,450 1,450 2,375 Feb. 01 2.375 8,914 X 90 X 9,004 Feb. 03 Feb. 05 Not Specified Kansas Corp Lyn Addie Hillside Mall Kansas Corp Not Specified S. Rey Lyn Addie S. Rey Not Specified Harris Office Products Wages expense Wages payable Merchandise inventory Kansas Corp Wages expense Prepaid rent Kansas Corp Advertising expense S. Rey, Withdrawals Wages expense Mileage expense Repairs expense Harris Office Products Mileage expense 540 Feb. 15 Feb. 26 4,660 1,160 540 4,660 1,160 256 860 OOO Feb. 27 Mar. 11 Mar. 19 256 860 4,020 4,020 320 Mar. 31 S. Rey 320 Mar. 31 Totals $ 33,693 $ 167 13,136 $ 20,724