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 separte accounts for wach 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 Receivalbe account. The change allows the company to continue using the existing chart of accounts.

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 amy 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 In response to requests from customers, 5 . Rey will begin selling computer software. The company will extend credit terms of 110, 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 Jamuary through March follow. January 4 The company paid cash to Lyn Addie for five days work at the rate of $245 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 $23,780 cash in the company. January 7 The company purchased $6,708 of merchandise from Kansas Corporation with terms of 1/10, n/30, FoB January 9 shipping point, invoice dated January 7. January 9 The company received $2,808 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, 380, which is the total price of $6,680 less the advance payment of $1,300. The company debited Unearned Computer Services Revenue for $1,300. January 13 The company sold merchandise with a retail value of $4,760 and a cost of $3,370 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 $4,070 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 $400 to Liu Corporation and credited Liu's accounts January 22 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 jamary \&4 tne company recurned derective mercnangise to mansas corporation andaccepted a creast agasnst tuture purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was 5486. Jamary 26 The company purchased $9, 89e of merchandise from Kansas Corporation with terms of 1/10, n/30, F0B destination, involce dated January 26. Jamary 26 The company sold merchandise with a $4,630 cost for $5,970 on credit to KC, Incorporated, invoice dated January 31 The company paid cash to Lyn Addie for 10 days' work at $245 per day. February 1 The company paid $2,655 cash to Hitlside Mati 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 $486 credit february 5. Trom merchandise returned on January 24 , February 5 The company paid 5430 cash to Facebook for an advertisement to appear on February 5 onty. February 11 The company received the batance due from Atex's Engineering Conpany for fees billed on January 11. February 15 5. Rey withdrew 94,610 cash from the company for personal use. February 23 The company sold merchandise with a $2,460 cost for $3,290 on credit to Delta Conpany, invoice dated February 26 The company paid cash to Lyn Addie for eight days ' work at $245 per day. February 27 The company reinbursed santana Rey $224 cash for business automobile mileage. The conpany recorded the reinbursement as "Mileage Expense." March 8 The company purchased $2,890 of conputer supplies frot Harris office Products on credit with terns of March 9 The company received the balance due from Delta Coapany for merchandise sold on February 23. March 11 The company paid $840 cash for minor repairs to the company's computer. March 16 The company received $5,340 cash from Drean, Incorporated, for conpating services provided. March 19 The company paid the futl anount due of $3,950 to Harris office Products, consisting of atounts created March 24 The company bitled Easy Leasing for $9,097 of computing services provided. March 25 The company sold merchandise with a $2,072 cost for $2,958 on credit to Witdcat Services, involce dated March 30 The company sotd merchandise with a \$1,168 cost for $2,360 on credit to IfM Conpany, involce dated March March 31 The company reinbursed Santana Rey $128 cash for business automobile mileage. The conpany recorded the reinbursement as "Mileage Expense." The following additional facts are twailable for preparing adjustments on Mareh 31 prior to financial statement preparation. a. The March 31 amount of computer supples still avaliable totals $2.195. b. Piepaid Insurance coverepe of $645 expired duting this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $245 per day. d. Piepnid rent of $2.655 expired during this three-month period. e. Depreciation on the computer equipment for Janvary 1 through March 31 is $1050. f. Depreciation on the office equpment for January 1 through March 31 is $320. 9. The Mosch 31 amount of merchandse inwentory stili available totais $644. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (e) through (gh, and the acjusted trial balance. Do not prepare dosing entries ind do not journalize the adjustments or post them to the ledger. 3. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (gh. the