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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 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 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 $235 per day. Four of the five days relate to wages payable that wore acerued in the prior year. January 5 Santana Rey invested an additional $24,100 cash in the company. January 7 the company purchased $5,800 of merchandise from Kansas Corporation with terms of 1/10, n/30, FoB shipping point, invoice dated January 7. January 9 the coapany, received $2,808 cash from Gomez company as fu11 payment on 1ta account. January 11 The company completed a five-day projeet for Alex's Engineering Company and biled it 55,330 , which in the total price of $6,760 less the advance payment of 51,430 . The company debited Unearned Computer services Revenue for $1,430. January 13 The company nold morehandise with a retail value of $4,800 and a coat of $3,420 to Lidu corporation, invoice dated January 13. January 15 the company paid $780 eash tor freight ehargen on the nerehandise purehased on January 7. January 16 The company recelved 54,040 caoh from Dolta company for computer norvices provided. January 17 the company paid Kansas corporation for the invoice dated January 7 , net of the diacount. January 20 the conpany gave a priee reduetion (allowanee) of $500 to tiu Corporation and eredited Liu's accounti receivable tor that amount. January 22 the company received the balance due from Lilu corporation, net of the discount and the allouance. January 24 the company returned defective merchandise to kansaa corporation and accepted a eredit against future purchases (debited accounta payable). The defective merchandine invoice coet, not of the discount, was $486. January 26. The company purchased $9,700 of merehandise from Kansai corporation with terma of 1/10, n/30, roB destination, invoice dated Jasuary 26 . Jenosry 26 the company wold merchandise with a $4,620 cont for $5,910 on eredit to KC, Incorporated, invoice dated January 26 . January 31 the corpany paid caah to Lyn Addie for 10 daya' work at. $235 per day. Februory 1 the company paid $2,595 cash to Mi1laide Mall for another three months' rent in advance. rebruary 3 the company paid Xansas corporation for the balance due, net of the cash diacount, leas the s4s 6 credit froe merchandiee returned on Janyary 24 . February 5 The conpany paid $560cash to Facebook dor an advertisement to appear on Pebruary 5 only. rebruary 11 the company recelved the balance due from Alex's Engineering company for fees billed on January Yebruery 15 5 . 5 . Rey withdrew $4,700 eash fron the company for personal use. Tebruary. 23 the conpany sold nerehandise Nith a $2,640 cost for $3,300 on credit to delta Company, invoice dated Jebruary 23 . Yebruary 26 the company paid eash to Lyn Addie for eight days work at $235 per day. February 27 zhe company relaborsed Eantana ney $352 cash for business automobllo milleage. The conpany Pebruary 27 The company rejmbursed Santana fley $352 cash for business automobile mileage. The company recorded the reimbursenont as "Mileage Expense." Narch 8 the company purchased $2,920 of computer aupplies from Harria office Producte on credit with termit of n/30, FOB destination, invoice dated Mareh 8 . Mareh 9 The company recelved the balance due from Delta company for merchandise sold on Febraary 23. Mareh 11 The company paid $770 eash for minor repairs to the company's conputer. March 16 The company received $5,330 cash from Dream, Incorporated, for conputing services provided. Mareh 19 the company pald the ful1 amount due of $4, oso to Harris office Products, consisting of amounts created on Docenber 15 (ot $1,130 ) and March. 8. March 24 The company b11led Easy Leasing for $9,227 of conpating aervicea provided. Mareh 25 The company sold merchandise with a $2,072 cost for $2, 660 on credit to Nildcat services, invoice dated Mareh 25 . March 30 The conpany sold nerchandise with a $1,088 cost for $2,280 on eredit to rFM company, invoice dated Mareh 30 . Harch 31 The company reimbursed Santana Rey $384cash for business automobile nileage. 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 avallable totals $2,065. b. Prepald Insurance coverage of $645 expired during this three-month period. c. Lyn Addle has not been pald for seven days of work at the rate of $235 per day. d. Prepaid rent of $2,595 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,200. f. Depreciation on the office equipment for January 1 through March 31 is $340. 9. The March 31 amount of merchandise inventory still available totals $504. Required: 1. Prepare journal entries to record each of the January through March transactions. Required information (1) Required information 2. Post the journal entries in part 1 to the accounts in the company's general ledger. Note: Begin with the ledger's post-closing adjusted balances as of December 31,2021

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