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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 avallable 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 were acerued in the prior year. January 5 santana Rey-invested an additional $24,100 cash in the company. January 7 The eompany purehased $5,800 of morchandise from kansas corporation with terms of 1/10, a/30, FoB shipping point, invoice dated January 7. January 9 The company received $2,808 cash from Gomez company as ful1 payment on lts account. January 11 The company completed a five-day project for Alex's Engineering Company and bil1ed 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 company sold merchandise with a retail value of $4,800 and a cost of $3,420 to Lid Corporation, involee dated January 13. January 15 The company paid $780 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,040 cash fron 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 tiu corporation and oredited Liu's accounts receivable for that amount. January 22 The company received the balance due from lit corporation, net of the discount and the allowance. January 24 the company returned defective merehandise to kansas corporation and accepted a credit against future purchases (debited accounts payable). The defective merehandise invoice cost, net of the discount, was $486. January 26 The company purchased $9,700 of merchandise from Kansas Corporation with terms of 1/10, n/30, FoB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,620 cost for $5,910 on credit to kc, Incorporated, involce dated January 26. January 31 The company paid cash to Lyn Addie for 10 days' work at $235 per day. February 1 The company paid $2,595 cash to 8111 side 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 eredit from merehandise returned on January 24 . February 5 The conpany paid $560 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 15s. Rey withdrew $4,700 cash from the company for personal use. February 23 The company sold merchandise with a $2,640 cost for $3,300 on credit to Delta Company, invoice dated February 23 . February 26 The company paid cash to Lyn Addie for eight days: work at $235 per day. February 27 the company reimbursed Santana Rey $352 cash for business automobile mileage. The company February 27 The company reimbursed Santana Rey $352 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 . The company purchased $2,920 of computer supplies from Harris office Products on credit with terms of n/30, FOB destination, invoice dated March 8 . Narch 9 The company received the balance due from Delta Company for merchandise sold on February 23. March 11 The company paid $770 cash for minor repairs to the company's computer. March 16 The company received $5,330 cash from Drean, Incorporated, for computing services provided. Mareh 19 The company paid the full anount due of $4,050 to Harris office products, consisting of amounts created 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 Narch 25. March 30 The company sold merchandise with a $1,088 cost for $2,280 on credit to IFM company, invoice dated March 30. March 31 The company reimbursed Santana Rey $384 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 $2,065. 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. g. 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 7837 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

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