@ Santana Rey created Business Solutions on October 1, 2021. 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, 2021. 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 Number Account Title Debit Credit 101 Cash $ 48, 472 106.1 Alex's Engineering Company 0 106.2 Wildcat Services 106.3 Easy Leasing 0 106.4 IFM Company 3,190 106.5 Liu Corporation @ 106.6 Gomez Company 2,778 106.7 Delta Company 106.8 KC, Incorporated 106.9 Dream, Incorporated 119 Merchandise inventory 126 Computer supplies 650 128 Prepaid insurance 2,043 131 Prepaid rent 895 163 Office equipment 8,190 164 Accumulated depreciation office equipment $ 320 167 Computer equipment 21,300 168 Accumulated depreciation Computer equipment 1,100 201 Accounts payable 1,170 210 Wages payable 620 236 Unearned computer services revenue 1,350 301 S. Rey, Capital 82,958 302 S. Rey, Withdrawals 403 Computer services revenue 413 Sales 414 Sales returns and allowances Cales dicroute 0 637 403 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 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 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. January 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. January 5 Santana Rey invested an additional $24,000 cash in the company. January 7 The company purchased $7,200 of merchandise from Kansas Corporation with terms of 1/10, 1/30, January 9 The company received $2,778 cash from Gonez Company as full payment on its account. January 11 The company completed a five-day project for Alex's Engineering Company and billed it $5,400, which is the total price of $6,750 less the advance payment of $1,350. The company debited Unearned Computer Services Revenue for $1,350. January 13 The company sold merchandise with a retail value of $4,600 and a cost of $3,390 to Liu Corporation, invoice dated January 13. January 15 The company paid $620 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,170 cash from Delta Company for computer services provided. January 17 The company paid Kansas Corporation for the invoice dated January 7, net of the discount. Tanuary The romanu nave a nice reduction allowance nf cha ti in Cornnratinn and creditoru January / ine company purcnasea >1,200 or mercnanaise trom nansas corporation with terms of 1/10, 1/30, FOB shipping point, invoice dated January 7. January 9 The company received $2,778 cash from Gomez Company as full payment on its account. January 11 The company completed a five-day project for Alex's Engineering Company and billed it $5,400, which is the total price of $6,750 less the advance payment of $1,350. The company debited Unearned Computer Services Revenue for $1,350. January 13 The company sold merchandise with a retait value of $4,600 and a cost of $3,390 to Liu Corporation, invoice dated January 13. January 15 The company paid $620 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,170 cash from Delta Company for computer services provided. January 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 $600 to Liu Corporation and credited Liu's accounts receivable for that amount. January 22 The company received the balance due from Liu Corporation, net of the discount and the allowance. January 24 The company returned defective merchandise to Kansas Corporation and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $496. January 26 The company purchased $9,900 of merchandise from Kansas Corporation with terms of 1/10, 1/30, FOB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,580 cost for $5,990 on credit to KC, Incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days' work at $155 per day. February 1 The company paid $2,685 cash to Hillside Malt for another three months' rent in advance. February 3 The company paid Kansas Corporation for the balance due, net of the cash discount, less the $496 credit from merchandise returned on January 24. February 5 The company paid $410 cash to Facebook for an advertisement to appear on February 5 only. February 11 The company received the balance due from Alex's Engineering Company for fees billed on January 11. February 15 S. Rey withdrew $4,760 cash from the company for personal use. February 23 The company sold merchandise with a $2,499 cost for $3,220 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $155 per day. February 27 The company reimbursed Santana Rey $128 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,850 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. March 9 The connany receiver the halance due from Delta Comnanv for merchandise snid on February 73. February 15 S. Rey withdrew $4,760 cash from the company for personal use. February 23 The company sold merchandise with a $2,490 cost for $3,220 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $155 per day. February 27 The company reimbursed Santana Rey $128 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,850 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. March 9 The company received the balance due from Delta Company for merchandise sold on February 23. March 11 The company paid $860 cash for minor repairs to the company's computer. March 16 The company received $5,430 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $4,020 to Harris Office Products, consisting of amounts created on December 15 (of $1,170) and March 8. March 24 The company billed Easy Leasing for $9,117 of computing services provided. March 25 The company sold merchandise with a $2,062 cost for $2,930 on credit to Wildcat Services, invoice dated March 25. March 30 The company sold merchandise with a $1,158 cost for $2,390 on credit to IFM Company, invoice dated March 30. March 31 The company reimbursed Santana Rey $160 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 $2,015. b. Prepaid Insurance coverage of $681 expired during this three-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 $2,685 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1100 1. Depreciation on the office equipment for January 1 through March 31 is $320. g. The March 31 amount of merchandise inventory still available totals $504, 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2022. (Report Accounts receivable as a single amount.) BUSINESS SOLUTIONS Balance Sheet March 31, 2022 Assets Current assets 0 Total current assets Plant assets 0 0 0 Total plant assets 0 Total current assets Plant assets 0 0 0 Total plant assets Total assets $ 0 Liabilities Current liabilities Equity 0 Total equity Total liabilities and equity $ 0