Santana Rey created Business Solutions on October 1. 2020. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modifled 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, 2020. 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. January 4 The company paid cash to Lyn Addie for five days' work at the rate of $195 per day. Four of the five days relate to wages payable that were accrued in the prior year. January 5 Santana Rey invested an additional $24,200 cash in the company in exchange for more contion stock. January 7 The conpany purchased $7,200 of merchandise from Kansas Corporation with terms of 1/10,n/30, F08 shipping point, invoice dated January 7. January 9 The company received $2,838 cash fron Gomez company as ful1 paynent on its account. January 11 The company completed a five-day project for Alex's Engineering company and billed it $5,498, which is the total price of $6,940 less the advance payment of $1,450. The company debited Unearned computer Services Revenue for $1,450. January 13 The conpany sold merchandise with a retail value of $4,300 and a cost of $3,500 to tiu corporation, invoice dated January 13. January 15 The company paid $640 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,100 cash from Delta Company for computer services provided. zanuary 17 The company paid Kansas corporation for the invoice dated January 7 , net of the discount. January 20 The company gave a price reduction (allowance) of 5600 to tiu corporation and credited Liu's accounts receivable for tht amount. January 22. The company received the balance due fron Liu corporation, net of the discount and the allowance. January 24 the company returned defective nerchandiso to Kansas corporation and accepted a credit against future purchases (debited accounts payable). The defective nerchandise invoice cost, net of the discount, was $486. January 26 The company purchased 59,60e of merchandise from Kansas Corporation with terns of 1/16, n/3e, FOB destination, involce dated January 26 . January 26 The company sold merchandise with a \$4,49e cost for $5,989 on credit to KC, Incorporated, invoice dated January 26. 3anuary 31 The conpany paid cash to Lyn Addie for 10 days' work at $195 pen day. February 2 The company paid 52,535 cash to Hillside Mall for anothen three months' rent in advance. February 3 The coopany paid Kansas corparation for the balance due, net of the cash discount, less the 5486 credit from nerchandise returned on January 24 . February 5 The conpany paid $47 e cash to Facobook for an advertisenent to appear on. February 5 only. February 11 The company received the balance due from Alexts Engineering conpany for fees billed on january 11. february 15 the company paid a $4,740 cash dividend. February 23 The coepany sold merchandise with a $2,540 cost for $3,260 on credit to Delta corpany, invoice dated February 23. February 26 the cospany poid cash to Lyn Addie for elght days' work ot \$195 per day. February 27 the coepany reinbursed Santana Rey $352 cash for businoss aut omobsle mileage. The company recorded the reiobursemient as - Mileage Expense.- Harch ss the conpany purchased \$2,78e of conputer supplies fron Haress office products on credit with terms of n/3e, Foe destination, invoice dated March 8 . march The conpany received the balance due from Delta conpany for nerchandise sold on February 23. march 11 the conpany paid $940 cash for ninor repairs to the company's computer. morch, 26 the company recelved 55,320 cash fron Dreas, incorporated, for computing services provided. March 19 The coepany paid the full anount due of 53,890 to Harcis office products, consisting of anounts created on Decenber 15 (of 51,110) and Harch 11 . March 24 The conpany billed Fasy Leasing for $9,047 of conputing services provided. Farch 25 The conpany wold eerchandise with a \$2,082 cost for \$2, 340 on tredit to Hi1dcat Services, itivoste dated tharch 25 . March 30 The company sold Eerchandise with a 52,231 cost for 52,370 on credit to lrm conpany, invosce dated hareh 30. Hanch-3i the cospany reinbursed Santana Hey s126 cash for business automobile mileage. The creopany reconded the resiburionent as "hiteage rapense.t The following adoitional focts ate available for preparing adjustments on March 31 prior ta finoncial statement pieparation. BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended March 31, 2021 Retained earnings, December 31, 2020 Retained earnings, March 31, 2021 Santana Rey created Business Solutions on October 1, 2020 . 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 customet. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2020 . Santana Rey decided to add a fourth diglt with a decimal point to the 106 account number that had been used for the single Accounts Recelvable 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 compoter saftware. The company will extend credit terms of 170,n30. FOB shipping point, to all customers who purchase this merchandise. Howevec, no cash discount is avalable; on consulting fees. Additional accounts (Nos. 119,413,414,415, and 502) are added to its general ledger to accomenodate the company's new merchandising activities. Ats transactions for January through March follow. relate to wacre payeble that . dere occrued in the prior yeser. point, iovicice deted 7erwary 7 . nereme for $1,44. coted Ramuary 13 . receivable for that arount. Hate. destination, ineide doted larwary x. In rerpobse to toquests fiom castomers S, Risy will begin selling conpofer sotwore. The company will extend tredil tertic of W10, n30 roe shipping point, to at customers who purchase this merchandise. Howevec, no cash discount is abatible or consuiting fees Addational accounts (Nos n9, 412, 414, 415, and 502 are adided to lts general fedger to accommodate the compary.s new merchandising activities. Its tranactions for Janeary thiough March follow. relste to cesest beyable that ere scerved in the peise year. point, irvoles dlated Jatwary is nerwenwe for 11,430. dated Janvary 13. Fwirsthle fire thus wemert. sese. zaswary 26 troe enchiodise whirned as 3eniery ia. trintry 23. Foo cestination, inveice dated firon 1 . beerener is fot 81,130) me marstio. Porch 2