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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,

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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 $48,562 3,120 2,678 730 2,070 225 8.000 $ 140 21,700 No Account Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 ITM Co. 106.5 Liu Corp. 186.6 Gonez 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 Unearned computer Services revenue 381 S. Rey, Capital 302 S. Rey. Withdrawals 483 Computer services revenue Sales 414 Sales returns and allowances 415 Sales discounts se2 Cost of goods sold Depreciation expense-Ottice cum Depreciation expenseomputer muit Wages experise 637 Insurance experie 4 Rent expense Computer supplies op 662 Advertising expense 676 Mileage expense 677 Miscellaneous expenses Represe-Core 1.ee 1.22 1.22 1,330 82,685 e 512 Nead > In response to requests from customers, S. Rey will beginselling computer software. The company will extend credit term of 170, n.BO, FOB shipping point to all customers who purchase this merchandise. However, no cash discounts available on consulting fees. Additional accounts (Nos. 119.413.434,415, and 502) are added to its general ledger to accommodate the company's new merchandising activities. Its transactions for January through March follow Dan. 4 The company paid cash to Lyn Addle for five days work at the rate of $255 per day. Four of the five days relate to wages payable that were accrued in the prior year 5 Santan Rey invested an additional $23,00 cash in the company 7 The company purchased $6.600 of merchandise from Kansas Corp. with terms of 1/10, w/30, FB shipping point invoice dated January 7. 9 The company received $2,678 cash from Gone Co. as full payment on its account. 11 The company completed a five-day project for Alex's Engineering Co. and billed it $5,480, which is the total price of $6,810 less the advance payment of $1,330. The company debited Unearned Computer Services Revenue for 51,330 1) The company sold merchandise with a retail value of $4,000 and a cost of $3,300 to Llu Corp., Invoice dated January 1) 15 The company paid 5730 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,010 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 5800 to Liu Corp., and credited Liu's accounts receivable for that amount. 22. The company received the balance due from Llu Corp., net of the discount and the allowance 24 The company returned detective 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 $9.4ee of merchandise from Kansas Core with tens of 1/10, we, roo destination, Invoice dated January 26 26 The company sold merchandise with a $4,500 cost for $5,000 on credit to KC, Inc., involve dated January 26. 31 The company paid cash to Lyn Addio for 10 days work at $255 per day. Feti The company paid 52,475 cash to Hillside Mail for another three months in advance 3. The company palu Kansas Corp. for the balance due, net of the cash discount, less the $496.htron merchandiu returned on January 24, 5. The company paid $550 cash to Facebook for an advertisement to appear on Petruary Satily 1. The company received the balance from Alex's tegneering Co. for fosted on January 11. 15 Santana Rey within 54,790 cash on the company for personal use 23 compare sold serchandise with a $2.540 cast for $1.290 Le Du Co., Involse i ubrury 21 26 The company paid cath to Lyn Addisorient days Sass per day 27. compeyre buried Santana ley 5352 for business to leage. The concert retursentasi pence 1 Part 1016 Mar merchandise returned on January 24 5. The company paid ssse cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due fron Alex's Engineering Co. for fees billed on January 11, 15 Santana Rey withdrew $4,790 cash from the company for personal use. 23 The company sold merchandise with a $2,540 cost for $3,290 on credit to Delta Co., Invoice dated February 23 26 The company paid cash to tyn Addle for eight days work at $255 per day. 27 The company reimbursed Santana Rey $352 for business automobile mileage. The company recorded the reimbursement as Mileage Expense. 8 The company purchased $2,900 of computer supplies from Harris Office Products on credit with terms of 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 $888 cash for minor repairs to the company's computer. 16 The company received $5,3ee cash tron Drea, Inc., for computing services provided. 19. The company paid the full amount due of $4,120 to Harris Ortice Products, consisting of amounts created on December 15 (of $1,220) and March 8. 24 The company billed Easy Leasing for $9,247 of computing services provided. 25 The company sold merchandise with a $2,122 cost for $2,808 or credit to wildcat Services, Invoice dated March 4.16 points -Book Be The company sold merchandise with a $1,228 cost for 52,270 on credit to ITM Company invoke dalled March 10. 31 The company reimbursed Santana Rey 504 for business sutuobile mileage. The company recorded the sent 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 supples sunt available totals $2,145 b. Prepaid Insurance coverage of $690 expired during this 3-month period. clyn Addle has not been paid for seven days of work at the rate of $255 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 $ $1.090 f Depreciation on the office equipment for January through March 31 $340, g. The March 1 amount of merchandise inventory still available totals $544 Required: 1. Prepare journal entries to record each of the January through March transactions Wir Journal entry worksheet 30 BI 98 36

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