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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. 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 daya" work at the rate of $235 per day. Four of the five days relate to wagen payable that were acerued in the prior year. January 5 Santana Rey invested an additional $24,100 cash in the company. January 7 The company purchaeed $5,800 of merchandise from Kaneas corporation with terma of 1/10, n/30, FoB shipping point, invoice dated January 7 . January 9 The company received $2,808 cash from gonez company as ful1 payment on its account. January 11 The company completed a five-day projeet for Alex's Engineering Conpany and billed it $5,330, which is the total price of $6,760 less the advance payment of $1,430. The company debited Unearned computer Services Revenue for $1,430. January 13 The eompany gold merehandise with a retail value of $4,800 and a cost of $3,420 to tid Corporation, invoice dated January 13 . January 15 The company paid $780 cash for freight charges on the merehandise purchased on Jantary 7. January 16 The company received $4,040 canh from Delta company for conputer 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 tiu corporation and eredited Liu's accounte receivable for that amount. January 22 The company received the balance due fron Liu corporation, net of the Jiscount and the allowance. January 24 The company returned defective merchandise to Kansas corporation and accepted a eredit against future purehases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $486. January 26 The conpany purehased $9,700 of merehandise from Kansas corporation with terms of 1/10, n/30, Foas destination, invoice dated January 26. January 26 The company sold merchandise with a $4,620 cost for $5,910 on credit to ke, Incorporated, invoice dated January 26 . January 31 The company paid eash to byn hddio for 10 daya' work at $235 per day. February 1 The company paid $2,595 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, lesa the \$486 credit from merchandise returned on January 24. February 5 The company paid $560 cash to Pacebook for an advertisement to appear on February 5 only. February 11 the company received the bolanee due from Alex's Engineering Company for fees billed on January February 155. Hey withdrew $4,700 cash fron the conpany for personal use. February 23 The company wold merchandise with a $2,640 cost for $3,300 on eredit to belta company, invoice dated February 23 . February 26 The company paid cash to tyn Addie for eight days work at $235 per day. February 27 The company reimburned santana Rey $352 cash for business automobile mileage. The company recorded the resmbursement as "Mileaqe Expense." recorded the reimbursement as "Mileage Expense." March 8 The company purehased $2,920 of computer supplies tron Harris orfice Products on oredit with terms of n/30, FOB destination, invoice dated March 8. March 9 The company received the balance due from Delta Company for merchandise sold on February 23. Mareh 11 The conpany paid $770 cash for minor repairs to the conpany's computer. March 16 The company received $5,330 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the ful1 anount due of $4,050 to Barris office Products, consisting of amounts ereated on December 15 (of $1,130 ) and March 8 . March 24 The company billed Easy Leasing for $9,227 of computing services provided. March 25 The company sold merchandise with a $2,072 cost for $2,860 on credit to wildcat services, invoice dated Mareh 25 . March 30 The company sold merchandise with a $1,088 cost tor $2,280 on credit to IFM company, 1nvolee dated March 30 . March 31 The company reimbursed Santana Rey $384 cash for business automobile mileage. The company recorded the reimburdement an "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 $2,065. 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. 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: 1. Prepare journal entries to record each of the January through March transactions. Journal entry worksheet 23567837 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 were accrued in the prior year. Note: Enter debits before credits. 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 . 3. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjustec trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31,2022. (a) Use a single-step format. List all expenses without differentiating between selling expenses and general and administrative expenses. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31,2022. (b) Use a multiple-step format that begins with gross sales (service revenues plus gross product sales) and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Categorize the following accounts as selling expenses: Wages Expense, Mileage Expense, and Advertising Expense, Categorize the remaining expenses as general and administrative. \begin{tabular}{|l|l|l|} \hline Expenses & & \\ \hline Selling expenses & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total selling expenses & & \\ \hline General and administrative expenses & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total expenses & & \\ \hline & & \\ \hline \end{tabular} 5. Prepare a statement of owner's equity (from the adjusted trial balance in part 3 ) for the three months ended March 31,2022 . 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31,2022 . (Report Accounts receivable as a single amount.) 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. 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 daya" work at the rate of $235 per day. Four of the five days relate to wagen payable that were acerued in the prior year. January 5 Santana Rey invested an additional $24,100 cash in the company. January 7 The company purchaeed $5,800 of merchandise from Kaneas corporation with terma of 1/10, n/30, FoB shipping point, invoice dated January 7 . January 9 The company received $2,808 cash from gonez company as ful1 payment on its account. January 11 The company completed a five-day projeet for Alex's Engineering Conpany and billed it $5,330, which is the total price of $6,760 less the advance payment of $1,430. The company debited Unearned computer Services Revenue for $1,430. January 13 The eompany gold merehandise with a retail value of $4,800 and a cost of $3,420 to tid Corporation, invoice dated January 13 . January 15 The company paid $780 cash for freight charges on the merehandise purchased on Jantary 7. January 16 The company received $4,040 canh from Delta company for conputer 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 tiu corporation and eredited Liu's accounte receivable for that amount. January 22 The company received the balance due fron Liu corporation, net of the Jiscount and the allowance. January 24 The company returned defective merchandise to Kansas corporation and accepted a eredit against future purehases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $486. January 26 The conpany purehased $9,700 of merehandise from Kansas corporation with terms of 1/10, n/30, Foas destination, invoice dated January 26. January 26 The company sold merchandise with a $4,620 cost for $5,910 on credit to ke, Incorporated, invoice dated January 26 . January 31 The company paid eash to byn hddio for 10 daya' work at $235 per day. February 1 The company paid $2,595 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, lesa the \$486 credit from merchandise returned on January 24. February 5 The company paid $560 cash to Pacebook for an advertisement to appear on February 5 only. February 11 the company received the bolanee due from Alex's Engineering Company for fees billed on January February 155. Hey withdrew $4,700 cash fron the conpany for personal use. February 23 The company wold merchandise with a $2,640 cost for $3,300 on eredit to belta company, invoice dated February 23 . February 26 The company paid cash to tyn Addie for eight days work at $235 per day. February 27 The company reimburned santana Rey $352 cash for business automobile mileage. The company recorded the resmbursement as "Mileaqe Expense." recorded the reimbursement as "Mileage Expense." March 8 The company purehased $2,920 of computer supplies tron Harris orfice Products on oredit with terms of n/30, FOB destination, invoice dated March 8. March 9 The company received the balance due from Delta Company for merchandise sold on February 23. Mareh 11 The conpany paid $770 cash for minor repairs to the conpany's computer. March 16 The company received $5,330 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the ful1 anount due of $4,050 to Barris office Products, consisting of amounts ereated on December 15 (of $1,130 ) and March 8 . March 24 The company billed Easy Leasing for $9,227 of computing services provided. March 25 The company sold merchandise with a $2,072 cost for $2,860 on credit to wildcat services, invoice dated Mareh 25 . March 30 The company sold merchandise with a $1,088 cost tor $2,280 on credit to IFM company, 1nvolee dated March 30 . March 31 The company reimbursed Santana Rey $384 cash for business automobile mileage. The company recorded the reimburdement an "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 $2,065. 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. 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: 1. Prepare journal entries to record each of the January through March transactions. Journal entry worksheet 23567837 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 were accrued in the prior year. Note: Enter debits before credits. 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 . 3. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjustec trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31,2022. (a) Use a single-step format. List all expenses without differentiating between selling expenses and general and administrative expenses. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31,2022. (b) Use a multiple-step format that begins with gross sales (service revenues plus gross product sales) and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Categorize the following accounts as selling expenses: Wages Expense, Mileage Expense, and Advertising Expense, Categorize the remaining expenses as general and administrative. \begin{tabular}{|l|l|l|} \hline Expenses & & \\ \hline Selling expenses & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total selling expenses & & \\ \hline General and administrative expenses & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total expenses & & \\ \hline & & \\ \hline \end{tabular} 5. Prepare a statement of owner's equity (from the adjusted trial balance in part 3 ) for the three months ended March 31,2022 . 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31,2022 . (Report Accounts receivable as a single amount.)

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