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. Creclit Debit $ 48,392 0 0 0 3,160 0 2,878 0 0 0 0 680 1,827 885 8,060 $ 270 20.400 No. Account Title 101 Cash 1061 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 5. Rey, Capital 302 S. Rey Withdrawals 403 Computer services revenue 413 Sales 414 Sales retums 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 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 634 Repairs expense -Computer 1,200 1,160 860 1,420 81,372 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 655 In response to requests from customers. S. Rey will begin selling computer software. The company will extend credit terms of 1/10, 1/30, 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 $215 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey Invested an additional $25,000 cash in the company. 7 The company purchased $7.500 of merchandise from Kansas Corp. with terms of 10, n/30, For 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 55,410, which is the total price of $6,830 less the advance payment of $1,420. The company debited Uneamed Computer Services Revenue for $1,420 13 The company sold merchandise with a retail value of $4,600 and a cost of $3,510 to Llui Corp., Invoice dated January 13. 15 The company paid 5600 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,090 cash from Delta Co for computer services provided. 17 The company paid Kansas Corp. for the involce dated January 7, net of the discount 20 The company gave a price recuction allowance of $400 to Liu Corp., and creditud 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 eccounts payable). The defective merchandise invoice cost, net of the discount, wes $485. of a (. $ $Corp, terms of 110, 1/30, FOB destination, invoice dated January 26 26 The company sold merchandise with a $4,470 cost for $5.950 on credit to KC, Inc., Invoice dated January 26. 21 The company paid cash to Lyn Addie for 10 days' work at $215 per day. Feb. 1 The company paid $2.655 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 $560 cash to Facebook for an acivertisement 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 Sentana Rey withdrew $4,770 cash from the company for personal use. 23 The company sold merchandise with a $2,500 cost for $3.290 on credit to Delta Co, invoice dated February 23. 26 The company paid cash to Lyn Addle for eight days' work at $215 per day. 27 The company reimbursed Santana Rey $384 for business automobile milenge. The company recorded the reimbursement as "Mileage Expense! Mar. 8 The company purchased $2,930 of computer supplies from Hamis 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 $850 cash for minor repairs to the company's computer 16 The company received $5,450 cash from Dream, Inc., for computing services provided. 19 The company paid the full arnourt cue of $4.090 to Harris Office Products, consisting of arounts created on December 15 (of $1,150) and March 8. 24 The company billed Easy Leasing for $9,117 of computing services provided. 25 The company sold merchandise with a $2,152 cost for $2.930 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,138 cost for $2,420 on credit to IFM Company, invoice cated March 30, 31 The company reimbursed Santana Rey $256 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 $2,165 b. Prepaid Insurance coverage of $609 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $215 per day. d. Prepaid rent of $2,655 expired during this 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,200. f. Depreciation on the office equipment for January 1 through March 31 is $270. g, The March 31 amount of merchandise inventory still available totals $574. 3. Award: 41.66 points 3. Prepare 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (9), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. BUSINESS SOLUTIONS Partial Work Sheet March 31, 2020 Unadjusted Trial Balance Dr. Cr. Adjustments Adjusted Trial Balance No. Account Title Dr. Cr. Dr. Cr. 101 Cash 126 106.1 Alex's Engineering Co. 106 2 Wildcat Services 106.3 Easy Leasing 106.4 IFM GO 100.4 FM CO 106.5 Liu Corp. 106.6 Gomez Co. 106.7 Della Co. Ive 106.8 KC, Inc. Anet 106.9 Dream, Inc 119 Merchandise inventory 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. Roy, Withdrawals 403 Computer services revenue 413 Sales 414 Sales returns and allowances 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. Creclit Debit $ 48,392 0 0 0 3,160 0 2,878 0 0 0 0 680 1,827 885 8,060 $ 270 20.400 No. Account Title 101 Cash 1061 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 5. Rey, Capital 302 S. Rey Withdrawals 403 Computer services revenue 413 Sales 414 Sales retums 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 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 634 Repairs expense -Computer 1,200 1,160 860 1,420 81,372 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 655 In response to requests from customers. S. Rey will begin selling computer software. The company will extend credit terms of 1/10, 1/30, 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 $215 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey Invested an additional $25,000 cash in the company. 7 The company purchased $7.500 of merchandise from Kansas Corp. with terms of 10, n/30, For 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 55,410, which is the total price of $6,830 less the advance payment of $1,420. The company debited Uneamed Computer Services Revenue for $1,420 13 The company sold merchandise with a retail value of $4,600 and a cost of $3,510 to Llui Corp., Invoice dated January 13. 15 The company paid 5600 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,090 cash from Delta Co for computer services provided. 17 The company paid Kansas Corp. for the involce dated January 7, net of the discount 20 The company gave a price recuction allowance of $400 to Liu Corp., and creditud 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 eccounts payable). The defective merchandise invoice cost, net of the discount, wes $485. of a (. $ $Corp, terms of 110, 1/30, FOB destination, invoice dated January 26 26 The company sold merchandise with a $4,470 cost for $5.950 on credit to KC, Inc., Invoice dated January 26. 21 The company paid cash to Lyn Addie for 10 days' work at $215 per day. Feb. 1 The company paid $2.655 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 $560 cash to Facebook for an acivertisement 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 Sentana Rey withdrew $4,770 cash from the company for personal use. 23 The company sold merchandise with a $2,500 cost for $3.290 on credit to Delta Co, invoice dated February 23. 26 The company paid cash to Lyn Addle for eight days' work at $215 per day. 27 The company reimbursed Santana Rey $384 for business automobile milenge. The company recorded the reimbursement as "Mileage Expense! Mar. 8 The company purchased $2,930 of computer supplies from Hamis 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 $850 cash for minor repairs to the company's computer 16 The company received $5,450 cash from Dream, Inc., for computing services provided. 19 The company paid the full arnourt cue of $4.090 to Harris Office Products, consisting of arounts created on December 15 (of $1,150) and March 8. 24 The company billed Easy Leasing for $9,117 of computing services provided. 25 The company sold merchandise with a $2,152 cost for $2.930 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,138 cost for $2,420 on credit to IFM Company, invoice cated March 30, 31 The company reimbursed Santana Rey $256 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 $2,165 b. Prepaid Insurance coverage of $609 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $215 per day. d. Prepaid rent of $2,655 expired during this 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,200. f. Depreciation on the office equipment for January 1 through March 31 is $270. g, The March 31 amount of merchandise inventory still available totals $574. 3. Award: 41.66 points 3. Prepare 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (9), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. BUSINESS SOLUTIONS Partial Work Sheet March 31, 2020 Unadjusted Trial Balance Dr. Cr. Adjustments Adjusted Trial Balance No. Account Title Dr. Cr. Dr. Cr. 101 Cash 126 106.1 Alex's Engineering Co. 106 2 Wildcat Services 106.3 Easy Leasing 106.4 IFM GO 100.4 FM CO 106.5 Liu Corp. 106.6 Gomez Co. 106.7 Della Co. Ive 106.8 KC, Inc. Anet 106.9 Dream, Inc 119 Merchandise inventory 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. Roy, Withdrawals 403 Computer services revenue 413 Sales 414 Sales returns and allowances