Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 customec. 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. 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 avallable on consulting fees. Additional accounts (Nos. 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the compary's new merchandising activitios. Its transactions for January through March follow. January 4 whe company pald cash to Lyn Addie for \&lve days work at the rate of \$235 per day. Four of the five days relate to wages payable that were acerued in the prior year. January 5 Santana Rey invested an addftional $24,100 cash in the eompany. January 7 The company purchased $5,800 of merchandise from Kansas corporation with terms of 1/10, n/30, Ton ahipping point, invoice dated January 7 . Sanuary 9 The conpany' received $2,808 cash from Gonez Conpany as fu11 paynent on 1 ts accodnt. January 11 The company completed a five-day project for Alex.s trigineering conpany and billed it $5,330, Which is the total price of $6,760 less the advance payment ot $1,430. The oonpany debited Unearned Conputer services Revenue for $1,430. Jandary 13 The coppany seld merchandise with a retail value of $4,800 and a cost of $3,420 to tiv Corporation, involoe dated January 13 . January is the company paid $780 cabh for freight charges on the merchandise purchased on January 7 . January 16 The eompany received $4,040 cash from Dolta company for computer meryicen provided. January 17 The ecenpany paid Kansan Corporation for the invoiee dated January 7 , net of the ditacount. January 20 The eompany gave a price reduction (allewance) of 5500 to Liu Corporation and eredited tia s aceotint receivable for that anount. January 22 The company received the balance due from-fit corporation, net of the diacount and the allowance. Jonsiry 24 The company returned defective nerchandise to kansas corporation and accepted a eredit against future purchases (debited accouata payable). The defective merchandise involce coat, net of the discount, wan 5486 . January 26. The conpany purchased $9,700 of Ferchandise from kanaan corporation with teras of 1/10, a/Jo, FOB destination, involce dated January 26 . January 26 The conpany nold merchandiae with a 54,620 cont for 55,910 on eredit to kce, Incorporated, invoiee dated January 26 . Januery 31 the coipany paid canh to Lyn Nddie for 10 days work at \$235 per day. February 1 The coepany paid 12,595 eanh to Hillaide Mall for another three montha' rent in advance. Tebraery 3 the compony pold Fansas Corporation for the balance due, net of the cash discount, lesa eha s4at oredit from nerchandine returbed on Jandary 24 . rebruary 5 The eoepany paid $560 canh eo Tacebook tor an advertisenent to appear on Fobruary 5 only. february 11 the compsay recelved the balance doe froi Alex's zagineering Company for fees bulled on Jamiary Februaty is 5 . Hey withdren 44,700 eash fron the coopany for personal use. Tebrusry ?3 The ecompaby sold perehabdise With a $2,640 cost for 53,360 on eredit to belta Conpany, invoice dated Rebruary 23 . Kebruary 26 . The eoppany paid cash co Jyn Nddie tor eight days woek at 2235 per day. February 3 The compsny paid Kansas Corporation for the balance due, net of the cash dibcount, less the $486 credit from nerchandise returned on January 24. Rebruary 5 The corpany paid $560 cash to Racebook for an advertineront to appear on february 5 only, February 11 . The conpany received the balance due from Alexp Engineering conpany for fees billed on January 11. Fehruary 15 S. Rey withrew $4,700 canh from the company for personal use. Tebraary 23 The company sold merehandise with a $2,640 cost for $3,300 on credit to Delta company, fnvoice dated February 23 . February 26 The company paid casb to tyn hddie for eight days work at \$235 per day, Tebrasry 27 the congany reimburbed Sastana Mey $352 cash for buainess automobile mileage. The company recorded the reinbursenent as "Mileage Expense." March 8 the company purchased $2,920 of conputer aupplies from inarrie office Products on credit with terma of n/30, RoB destination, invoice dated March B. March 9 the company received the balance due from belta corpany for merchandise sold on February 23. March 11 The conpany paid $770 canh for minor repairs to the company' cocputer. March 16 the eorpshy, received $5,330 eash tron Drean, Incorporated, for eomputing servicea provided. Mareh 19 The conpany paid the fuld ameant due of $4,050 to Harris office products, eonslsting of amounta ereated on Docember 15 (of 51,139) and Wareh 8+ Karch 24 The conpany billed Easy Leasing for 59,227 of eonputing services provided. Warch 25 The company sold merehandise With a $2,972 eost for $2, B60 en eredit to Wildeat Siervices, invoice dated Mareh 25 . Mereb 30 The company sold merehandise with a $1,088 coot far $2,200 on eredit to IVM Conpany, invoide Sated Mareh 30. Kareh 31 The company reimbureed santana Hey 5384 eash for businesi auzomobile mileage. Tbe donpany reoorded the reimbursenent as "Hileage 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 stil avalloble totals 52.065 . b. Prepaid insurance coverage of $645 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $235 per day. d. Prepald tent of $2.595 expired during this three-menth petiod. e. Depreciation on the computer equlpment for January 1 through March 31 is 51,200 1. Depreciation on the office equipment for January 1 through March 31 is 5340. 9. The March 31 amount of merchandise ifventory still avalable totals $504. 3. Prepare a 6 -column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. (1) Required information 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 customec. 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. 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 avallable on consulting fees. Additional accounts (Nos. 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the compary's new merchandising activitios. Its transactions for January through March follow. January 4 whe company pald cash to Lyn Addie for \&lve days work at the rate of \$235 per day. Four of the five days relate to wages payable that were acerued in the prior year. January 5 Santana Rey invested an addftional $24,100 cash in the eompany. January 7 The company purchased $5,800 of merchandise from Kansas corporation with terms of 1/10, n/30, Ton ahipping point, invoice dated January 7 . Sanuary 9 The conpany' received $2,808 cash from Gonez Conpany as fu11 paynent on 1 ts accodnt. January 11 The company completed a five-day project for Alex.s trigineering conpany and billed it $5,330, Which is the total price of $6,760 less the advance payment ot $1,430. The oonpany debited Unearned Conputer services Revenue for $1,430. Jandary 13 The coppany seld merchandise with a retail value of $4,800 and a cost of $3,420 to tiv Corporation, involoe dated January 13 . January is the company paid $780 cabh for freight charges on the merchandise purchased on January 7 . January 16 The eompany received $4,040 cash from Dolta company for computer meryicen provided. January 17 The ecenpany paid Kansan Corporation for the invoiee dated January 7 , net of the ditacount. January 20 The eompany gave a price reduction (allewance) of 5500 to Liu Corporation and eredited tia s aceotint receivable for that anount. January 22 The company received the balance due from-fit corporation, net of the diacount and the allowance. Jonsiry 24 The company returned defective nerchandise to kansas corporation and accepted a eredit against future purchases (debited accouata payable). The defective merchandise involce coat, net of the discount, wan 5486 . January 26. The conpany purchased $9,700 of Ferchandise from kanaan corporation with teras of 1/10, a/Jo, FOB destination, involce dated January 26 . January 26 The conpany nold merchandiae with a 54,620 cont for 55,910 on eredit to kce, Incorporated, invoiee dated January 26 . Januery 31 the coipany paid canh to Lyn Nddie for 10 days work at \$235 per day. February 1 The coepany paid 12,595 eanh to Hillaide Mall for another three montha' rent in advance. Tebraery 3 the compony pold Fansas Corporation for the balance due, net of the cash discount, lesa eha s4at oredit from nerchandine returbed on Jandary 24 . rebruary 5 The eoepany paid $560 canh eo Tacebook tor an advertisenent to appear on Fobruary 5 only. february 11 the compsay recelved the balance doe froi Alex's zagineering Company for fees bulled on Jamiary Februaty is 5 . Hey withdren 44,700 eash fron the coopany for personal use. Tebrusry ?3 The ecompaby sold perehabdise With a $2,640 cost for 53,360 on eredit to belta Conpany, invoice dated Rebruary 23 . Kebruary 26 . The eoppany paid cash co Jyn Nddie tor eight days woek at 2235 per day. February 3 The compsny paid Kansas Corporation for the balance due, net of the cash dibcount, less the $486 credit from nerchandise returned on January 24. Rebruary 5 The corpany paid $560 cash to Racebook for an advertineront to appear on february 5 only, February 11 . The conpany received the balance due from Alexp Engineering conpany for fees billed on January 11. Fehruary 15 S. Rey withrew $4,700 canh from the company for personal use. Tebraary 23 The company sold merehandise with a $2,640 cost for $3,300 on credit to Delta company, fnvoice dated February 23 . February 26 The company paid casb to tyn hddie for eight days work at \$235 per day, Tebrasry 27 the congany reimburbed Sastana Mey $352 cash for buainess automobile mileage. The company recorded the reinbursenent as "Mileage Expense." March 8 the company purchased $2,920 of conputer aupplies from inarrie office Products on credit with terma of n/30, RoB destination, invoice dated March B. March 9 the company received the balance due from belta corpany for merchandise sold on February 23. March 11 The conpany paid $770 canh for minor repairs to the company' cocputer. March 16 the eorpshy, received $5,330 eash tron Drean, Incorporated, for eomputing servicea provided. Mareh 19 The conpany paid the fuld ameant due of $4,050 to Harris office products, eonslsting of amounta ereated on Docember 15 (of 51,139) and Wareh 8+ Karch 24 The conpany billed Easy Leasing for 59,227 of eonputing services provided. Warch 25 The company sold merehandise With a $2,972 eost for $2, B60 en eredit to Wildeat Siervices, invoice dated Mareh 25 . Mereb 30 The company sold merehandise with a $1,088 coot far $2,200 on eredit to IVM Conpany, invoide Sated Mareh 30. Kareh 31 The company reimbureed santana Hey 5384 eash for businesi auzomobile mileage. Tbe donpany reoorded the reimbursenent as "Hileage 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 stil avalloble totals 52.065 . b. Prepaid insurance coverage of $645 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $235 per day. d. Prepald tent of $2.595 expired during this three-menth petiod. e. Depreciation on the computer equlpment for January 1 through March 31 is 51,200 1. Depreciation on the office equipment for January 1 through March 31 is 5340. 9. The March 31 amount of merchandise ifventory still avalable totals $504. 3. Prepare a 6 -column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. (1) Required information

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Food Beverage And Labor Cost Controls

Authors: Paul R. Dittmer, J. Desmond Keefe

8th Edition

0471429929, 978-0471429920

More Books

Students also viewed these Accounting questions