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.

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 companys 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:

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.

Credit Debit $48,502 @ @ 3,160 2,878 @ @ @ 780 1,755 685 8,030 $ 290 20,800 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 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 1,100 1,180 660 1,350 82,010 @ @ @ @ @ @ @ @ @ Jan. 4 The company paid cash to Lyn Addie for five days' work at the rate of $165 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $24,300 cash in the company. 7 The company purchased $6,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,878 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 $5,380, which is the total price of $6,730 less the advance payment of $1,350. The company debited Unearned Computer Services Revenue for $ 1,350. 13 The company sold merchandise with a retail value of $4,700 and a cost of $3,390 to Liu Corp., invoice dated January 13. 15 The company paid $800 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 $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 defective merchandise invoice cost, net of the discount, was $476. 26 The company purchased $9,600 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 $4,550 cost for $5,920 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,275 cash to Hillside Mali for another three months' rent in advance. 3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $476 credit from merchandise returned on January 24. 5 The company paid $450 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 $4,600 cash from the company for personal use. 23 The company sold merchandise with a $2,640 cost for $3,410 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The company reimbursed Santana Rey $128 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense. Mar. 8 The company purchased $2,860 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 $920 cash for minor repairs to the company's computer. 16 The company received $5,370 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $4,040 to Harris Office Products, consisting of amounts created on December 15 (of $1,180) and March 8. 24 The company billed Easy Leasing for $9,207 of computing services provided. 25 The company sold merchandise with a $2,102 cost for $2,900 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,208 cost for $2,370 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $288 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense. Feb. SALES JOURNAL Date Account Debited Accounts Receivable Dr. Sales Cr. Cost of Goods Sold Dr. Inventory Cr. Mar. 31 Totals CASH RECEIPTS JOURNAL Accounts Cash Dr. Sales Receivable Discount Dr. Cr. Date Account Credited Services Other Accts. Revenue Cr. Cr. Cost of Goods Sold Dr. Inventory Cr. Mar. 31 Totals PURCHASES JOURNAL Date Account Date of Invoice Terms Accounts Payable Cr. Inventory Dr. Computer Other Supplies Dr. Accounts Dr. Mar. 31 Totals CASH PAYMENTS JOURNAL Date Payee Account Debited Cash Cr. Inventory Cr. Other Accounts Dr. Accounts Payable Dr. Jan. 04 Mar. 31 Totals Credit Debit $48,502 @ @ 3,160 2,878 @ @ @ 780 1,755 685 8,030 $ 290 20,800 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 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer 1,100 1,180 660 1,350 82,010 @ @ @ @ @ @ @ @ @ Jan. 4 The company paid cash to Lyn Addie for five days' work at the rate of $165 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $24,300 cash in the company. 7 The company purchased $6,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,878 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 $5,380, which is the total price of $6,730 less the advance payment of $1,350. The company debited Unearned Computer Services Revenue for $ 1,350. 13 The company sold merchandise with a retail value of $4,700 and a cost of $3,390 to Liu Corp., invoice dated January 13. 15 The company paid $800 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 $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 defective merchandise invoice cost, net of the discount, was $476. 26 The company purchased $9,600 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 $4,550 cost for $5,920 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,275 cash to Hillside Mali for another three months' rent in advance. 3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $476 credit from merchandise returned on January 24. 5 The company paid $450 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 $4,600 cash from the company for personal use. 23 The company sold merchandise with a $2,640 cost for $3,410 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The company reimbursed Santana Rey $128 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense. Mar. 8 The company purchased $2,860 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 $920 cash for minor repairs to the company's computer. 16 The company received $5,370 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $4,040 to Harris Office Products, consisting of amounts created on December 15 (of $1,180) and March 8. 24 The company billed Easy Leasing for $9,207 of computing services provided. 25 The company sold merchandise with a $2,102 cost for $2,900 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,208 cost for $2,370 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $288 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense. Feb. SALES JOURNAL Date Account Debited Accounts Receivable Dr. Sales Cr. Cost of Goods Sold Dr. Inventory Cr. Mar. 31 Totals CASH RECEIPTS JOURNAL Accounts Cash Dr. Sales Receivable Discount Dr. Cr. Date Account Credited Services Other Accts. Revenue Cr. Cr. Cost of Goods Sold Dr. Inventory Cr. Mar. 31 Totals PURCHASES JOURNAL Date Account Date of Invoice Terms Accounts Payable Cr. Inventory Dr. Computer Other Supplies Dr. Accounts Dr. Mar. 31 Totals CASH PAYMENTS JOURNAL Date Payee Account Debited Cash Cr. Inventory Cr. Other Accounts Dr. Accounts Payable Dr. Jan. 04 Mar. 31 Totals