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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,

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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 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 computer software The company will extend credit terms on consulting fees. Additional accounts (Numbers. 119,413,414,415, and 502 ) areadded to its general ledger to aceornmpdate the companys new merchandising actovites. Its transactions for January through March foliow January 4 The company poid cash to Lyn Addle for five days' work at the rate of $135 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 $24,700 cash in the company in exchange for more common stock. January 7 The company purchased $6,100 of nerchandise fros Kansas Corporation with teras of 1/10, n/30, Fob shipping point, invoice dated January 7. January 9 The company recelved $2,798 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 55 , 370 , which is the tots 1 price of $6,680 less the advance payment of $1,310. The company debited Unearned Computer Services Revenue for $1,310. January 13 The coepany sold merchandise with a retail value of $4,109 and a cost of $3,390 to Liu Corporation, invoice dated January 13. January 15 The company paid $770 cash for freight charges on the merchandise purchased on january 7. January 16 The company received $4,200 cash from Delta Company for computer services provided. Janivary 17 The company paid Kansas corporation for the involce dated January 7 , net of the discount. January 28 The company gave a price reduction (allowance) of $600 to Liu Corporation and credited Liu's accounts receivable for that anount. January 22 The company received the balance due from lifu corporation, net of the discount and the allowance. January 24 The company returned defective merchandise to Kansas Cocporation and accepted a credit against. future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $476. January 26 The company purchased $9,900 of merchandise from Kansas Corporation with terms of 1/10, n/39, FoB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,580 cost for $5,960 on credit to kC, Incorporated, invoice dated January 26 . January 31 The company pald cash to Lyn Addle for 10 days' work at \$135 per day. February 1 The company paid $2,505 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, 1 ess the $476 credit from merchandise returned on January 24 . February 5 The company paid $500 cash to Facebook for an advertisenent to appear on February 5 only. February 11 The company recelved the balance due from Alex's Engineering Company for fees billed on January 11. February 15 The company paid a $4,690 cash dividend. February 23 The company sold merchandise with a $2,580 cost for $3,380 on credit to Delta Company, involce dated February 23. Februarv 26 The company oaid cash to Lvn Addie for ciuht davs' work at $135 der dav. Eebruary 26 The conpany paid cash to Lyn Addie for elight days' work at $135 per day. february 27 The company reinbursed Santana Rey $320 cash for business autonobile mileage. The company recorded the reinbursement as "Mileage Expense." March 8 The company purchased $2,780 of computer supplies from Harris office Products on credit with terms of n/30 Foil 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 paild $77 cash for minor repairs to the company's computer. March 16 The company received $5,440 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full anount due of $4,058 to Harris office Products, consisting of amounts created on December 15 (of $1,270 ) and March 8. March 24 The company billed Easy Leasing for $9,177 of conputing services provided. March 25 The company sold merchandise with a $2,082 cost for $2,950 on credit to wildcat Services, involice dated March 25. March 30 The company sold merchandise with a $1,098 cost for $2,260 on credit to IFM Company, Invoice dated March 30. March 31 The company reimbursed Santana Rey $224 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 $2,135. b. Prepaid Insurance coverage of $663 expired during this three-month period c. Lyn Addie has not been paid for seven days of work at the rate of $135 per day. d. Prepaid rent of \$2,505 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,090. f. Depreciation on the office equipment for January 1 through March 31 is $240. 9. The March 31 amount of merchandise inventory still available totals $624. 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 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 computer software The company will extend credit terms on consulting fees. Additional accounts (Numbers. 119,413,414,415, and 502 ) areadded to its general ledger to aceornmpdate the companys new merchandising actovites. Its transactions for January through March foliow January 4 The company poid cash to Lyn Addle for five days' work at the rate of $135 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 $24,700 cash in the company in exchange for more common stock. January 7 The company purchased $6,100 of nerchandise fros Kansas Corporation with teras of 1/10, n/30, Fob shipping point, invoice dated January 7. January 9 The company recelved $2,798 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 55 , 370 , which is the tots 1 price of $6,680 less the advance payment of $1,310. The company debited Unearned Computer Services Revenue for $1,310. January 13 The coepany sold merchandise with a retail value of $4,109 and a cost of $3,390 to Liu Corporation, invoice dated January 13. January 15 The company paid $770 cash for freight charges on the merchandise purchased on january 7. January 16 The company received $4,200 cash from Delta Company for computer services provided. Janivary 17 The company paid Kansas corporation for the involce dated January 7 , net of the discount. January 28 The company gave a price reduction (allowance) of $600 to Liu Corporation and credited Liu's accounts receivable for that anount. January 22 The company received the balance due from lifu corporation, net of the discount and the allowance. January 24 The company returned defective merchandise to Kansas Cocporation and accepted a credit against. future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $476. January 26 The company purchased $9,900 of merchandise from Kansas Corporation with terms of 1/10, n/39, FoB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,580 cost for $5,960 on credit to kC, Incorporated, invoice dated January 26 . January 31 The company pald cash to Lyn Addle for 10 days' work at \$135 per day. February 1 The company paid $2,505 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, 1 ess the $476 credit from merchandise returned on January 24 . February 5 The company paid $500 cash to Facebook for an advertisenent to appear on February 5 only. February 11 The company recelved the balance due from Alex's Engineering Company for fees billed on January 11. February 15 The company paid a $4,690 cash dividend. February 23 The company sold merchandise with a $2,580 cost for $3,380 on credit to Delta Company, involce dated February 23. Februarv 26 The company oaid cash to Lvn Addie for ciuht davs' work at $135 der dav. Eebruary 26 The conpany paid cash to Lyn Addie for elight days' work at $135 per day. february 27 The company reinbursed Santana Rey $320 cash for business autonobile mileage. The company recorded the reinbursement as "Mileage Expense." March 8 The company purchased $2,780 of computer supplies from Harris office Products on credit with terms of n/30 Foil 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 paild $77 cash for minor repairs to the company's computer. March 16 The company received $5,440 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full anount due of $4,058 to Harris office Products, consisting of amounts created on December 15 (of $1,270 ) and March 8. March 24 The company billed Easy Leasing for $9,177 of conputing services provided. March 25 The company sold merchandise with a $2,082 cost for $2,950 on credit to wildcat Services, involice dated March 25. March 30 The company sold merchandise with a $1,098 cost for $2,260 on credit to IFM Company, Invoice dated March 30. March 31 The company reimbursed Santana Rey $224 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 $2,135. b. Prepaid Insurance coverage of $663 expired during this three-month period c. Lyn Addie has not been paid for seven days of work at the rate of $135 per day. d. Prepaid rent of \$2,505 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,090. f. Depreciation on the office equipment for January 1 through March 31 is $240. 9. The March 31 amount of merchandise inventory still available totals $624

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