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 101 106.1 Account Title Cash Alex's Engineering Company 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Company 106.5 Liu Corporation. 106.6 Gomez Company 106.7 Delta Company 106.84 KC, Incorporated 106.9 Dream, Incorporated 119 Merchandise inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation-office equipment 167 Computer equipment 350 Debit Credit $ 48,462 e e 3,040 2,708 e 700 1,725 775 8,130 $ 230 21,700 167 Computer equipment 21,700 168 201 Accumulated depreciation-Computer equipment Accounts payable 1,180 1,240 210 Wages payable 860 236 301 S. Rey, Capital 302 403 413 414 415 Sales discounts 502 612 613 623 637 640 652 655 676 677 Unearned computer services revenue S. Rey, Withdrawals Computer services revenue Sales Sales returns and allowances 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 1,450 82,280 @ e e e e 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 $215 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 $25,000 cash in the company. January 7 The company purchased $6,400 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. January 9 The company received $2,708 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 $5,320, which is the total price of $6,770 less the advance payment of $1,450. The company debited Unearned Computer Services Revenue for $1,450. 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 $630 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. 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 $500 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 $486. January 26 The company purchased $9,100 of merchandise from Kansas Corporation with terms of 1/10, n/30, F08 destination, invoice dated January 26. January 26 The company sold merchandise with a $4,630 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 $215 per day. February 1 The company paid $2,375 cash to Hillside Mall 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 from merchandise returned on January 24. February 5 The company paid $450 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 $4,740 cash from the company for personal use. February 23 The company sold merchandise with a $2,620 cost for $3,250 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $215 per day. February 27 The company reimbursed Santana Rey $320 cash for business automobile mileage. The company recorded the reimbursement at "Mileage Expense." March 8 The company purchased $2,820 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8.1 March 9 The company received the balance due from Delta Company for merchandise sold on February 23. March 11 The company paid $870 cash for minor repairs to the company's computer. March 16 The company received $5,280 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $4,660 to Harris Office Products, consisting of amounts created on December 15 (of $1,240) and March 8. March 24 The company billed Easy Leasing for $9,097 of computing services provided. March 25 The company sold merchandise with a $2,042 cost for $2,920 on credit to Wildcat Services, invoice dated March 25. March 30 The company sold merchandise with a $1,068 cost for $2,390 on credit to IFM Company, invoice dated March 30. March 31 The company reimbursed Santana Rey $96 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Assume that Santana Rey expands Business Solutions' system to include special journals. Required: 2. & 3. Enter the Business Solutions transactions for January through March in a sales journal, cash receipts journal, purchases journal, and cash payments journal or general journal. If the transaction does not specify the name of the payee, state "not specified" in the Payee column of the cash payments journal. The transactions on the following dates should be journalized in the general journal: January 5, 11, 20, and 24 and March 24. Do not record and post the adjusting entries for the end of March. Complete this question by entering your answers in the tabs below. Sales Cash Receipts Purchases Cash Payments General Journal Enter the Business Solutions transactions for January through March in a cash receipts journal. CASH RECEIPTS JOURNAL Sales Cash Date Account Credited Debit Discount Debit Accounts Receivable Credit 300 Services Revenue Credit Other Accounts Cost of Goods Sold Debit Credit Inventory Credit Sales Cash Receipts Purchases Cash Payments General Journal Enter the Business Solutions transactions for January through March in a cash receipts journal. CASH RECEIPTS JOURNAL Date Account Credited Cash Debit Sales Discount Accounts Receivable Debit Credit Services Revenue Credit Other Accounts Credit Cost of Goods Sold Debit Inventory Credit January 09 Gomez Company $ 2,708 $ 2,708 January 16 Services Revenue 4,100 4,100 January 22 Liu Corporation February 11 Alex's Engineering Company March 09 Delta Company March 16 Services Revenue March 31 Totals $ 6,808 $ 0 $ 2,708 $ 4,100 $ 0 $ Sales Cash Receipts Purchases Cash Payments General Journal Enter the Business Solutions transactions for January through March in a purchases journal. PURCHASES JOURNAL Date Account Date of Invoice Terms Accounts Payable Credit Inventory Debit Computer Supplies Debit Other Accounts Debit March 31 Totals 0 $ 0 $ 0 < Cash Receipts Cash Payments > Enter the Business Solutions transactions for January through March in a cash payments journal. If the transaction does not specify payee, state "not specified" in the Payee column of the cash payments journal. CASH PAYMENTS JOURNAL Date Payee Account Debited Cash Credit Inventory Credit Other Accounts Debit Accounts Payable Debit January 04 Complete this question by entering your answers in the tabs below. Sales Cash Receipts Purchases Cash Payments General Journal Enter the Business Solutions transactions for January through March in a general journal. The transactions on the following dates sho be journalized in the general journal: January 5, 11, 20, 24 and March 24. Do not record and post the adjusting entries for the end off March. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 Record the additional cash investment by Santana Rey. Note: Enter debits before credits bok int rences Journal entry worksheet < 1 2 3 4 5 Record the entry for completion of a five-day project for Alex's Engineering Company and billing it $5,320, which is the total price of $6,770 less the advance payment of $1,450. The company debited Unearned Computer Services Revenue for $1,450. Note: Enter debits before credits. Date January 11: General Journal Debit Credit Record entry Clear entry View general Journal Journal entry workSneel 1 2 3 4 5 Record the entry for allowance of $500 given by the company to Liu Corporation. Note: Enter debits before credits. Date January 20 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 1 2 3 4m 5 Record the entry for return of defective merchandise which had a $486 cost. Note: Enter debits before credits. Date January 24 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksneet > 1 2 3 4 Record the entry for providing computer services to Easy Leasing for $9,097. Note: Enter debits before credits. Date March 24 General Journal Debit Credit > Record entry Clear entry View general journal