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 $48,382 3,040 2,698 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 3e7 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 413 Sales 0 710 2,070 825 8,080 $ 220 20,900 1,190 1,250 620 1,490 74,775 7,160 You skipped this question in the previous attempt. AVALE 403 413 414 415 502 612 613 623 637 640 652 655 676 677 684 Computer services revenue Sales Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 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 $155 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $24,400 cash in the company in exchange for more common stock. 7 The company purchased $7,100 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,698 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 $5,400, which is the total price of $6,890 less the advance payment of $1,490. The company debited Unearned Computer Services Revenue for $1,490. 13 The company sold merchandise with a retail value of $4,300 and a cost of $3,400 to Liu Corp., invoice dated January 13. ise purchased on January 7. 1) ine company paid >/4 cash for freight charges on the merchandise purchased on January 1. 16 The company received $4,110 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 $689 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 $486. 26 The company purchased $9,100 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 $4,560 cost for $5,900 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days work at $155 per day. Feb. 1 The company paid $2,475 cash to Hillside Mall for another three months' rent in advance. 3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $486 credit from merchandise returned on January 24. 5 The company paid $480 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 The company paid a $4,740 cash dividend. 23 The company sold merchandise with a $2,630 cost for $3,320 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $155 per day. 27 The company reimbursed Santana Rey $288 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,810 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 $780 cash for minor repairs to the company's computer. 16 The company received $5,320 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 $1,250) and March 8. 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,880 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,178 cost for $2,280 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $192 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 $2,175. 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 $155 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 is $1,190, f. Depreciation on the office equipment for January 1 through March 31 is $220. g. The March 31 amount of merchandise inventory still available totals $514. Part 2 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 ad balances as of December 31, 2019 101 Cash Debit Credit Date Balance 106.1 Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Dec 31 0 Dec. 31 Required information 106.2 Accounts Receivable-Wildcat Services Date Debit Credit Balance Dec. 31 106.3 Accounts Receivable-Easy Leasing Debit Credit Balance Date 0 Dec 31 0 106.4 Accounts Receivable IFM Co. Debit Credit Date Balance 106.5 Accounts Receivable-Liu Corporation Date Debit Credit Balance Dec 31 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. 106.9 Accounts Receivable-Dream, Inc. Required information 106.8 Accounts Receivable-KC, Inc. Debit Credit Date Dec. 31 106.9 Accounts Receivable-Dream, Inc. Debit Credit Balance Balance Date Dec 31 0 0 119 Merchandise Inventory Debit Credit Date 126 Computer Supplies ebit Credit Balance Balance Dec 31 Date Dec 31 0 Required information Date Dec. 31 128 Prepaid Insurance Debit Credit Balance 131 Prepaid Rent Debit Credit Date Balance Dec 31 163 Office Equipment Debit Credit Date Balance 164 Accumulated Depreciation-Office Equipment Date Debit Credit Balance Dec. 31 Dec. 31 167 Computer Equipment Debit Credit Balance Date Dec. 31 168 Accumulated Depreciation-Computer Equipment Date Debit Credit Balance Dec 31 201 Accounts Payable Debit Credit 210 Wages Payable Debit Credit Balance Date Balance Date Dec 31 Required information 201 Accounts Payable Credit Date Debit Balance Date 210 Wages Payable Debit Credit Dec. 31 Balance Dec 31 236 Unearned Computer Services Revenue Date Debit Credit Balance Dec. 31 307 Common Stock Debit Credit Date Balance Dec 31 318 Retained Earnings Debit Credit 319 Dividends Debit Credit Date Balance Date Balance Dec. 31 Required information 403 Computer Services Revenue Debit Credit Date Balance 413 Sales Debit Credit Date Balance 414 Sales Returns and Allowances Debit Credit 415 Sales Discounts Debit Credit Date Balance Date Balance 502 Cost of Goods Sold Debit Credit 612 Depreciation Expense-Office Equipment Date Debit Credit Balance Date Balance Required information 613 Depreciation Expense-Computer Equipment Date Debit Credit Balance 623 Wages Expense Debit Credit Date Balance 637 Insurance Expense Debit Credit Date 640 Rent Expense Debit Credit Balance Date Balance 652 Computer Supplies Expense Debit Credit 666 Advertising Expense Debit Credit Date Balance Date Balance 676 Mileage Expense Debit Credit 677 Miscellaneous Expenses Debit Credit Date Balance Date Balance 652 Computer Supplies Expense Debit Credit Date Balance 666 Advertising Expense Debit Credit Date Balance 676 Mileage Expense Debit Credit 677 Miscellaneous Expenses Debit Credit Date Balance Date Balance 684 Repairs Expense-Computer Debit Credit Date Balance