Santana Rey created Buslness 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 contue using the existing chart of accounts. In response to requests trom customers, Santana Key will begln selling computer sortware. I he 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 (Numbers 119,413,414,415, and 502) are added to its general ledger to accommodate the company's new merchandising actlvitles. Its transactlons for January through March follow. January 4 The conpany paid cash to Lyn Addie for five days' work at the rate of $125 per day. Four of the five January 5 Santana Rey invested an additional $25, 000 cash in the conpany. January 7 The company purchased $5,800 of nerchandise from Kansas Corporation with terms of 1/10,n/30,FOB shipping point, involce dated January 7. January 9 The conpany received $2,668 cash fron Gonez Company as full payment on its account. lanuary 11 The company completed a five-day project for Alex"s Engineering Company and billed it $5,500, which is the total price of $7,000 less the advance payment of $1,509. The company debited Unearned Computer Services Revenue for $1,500. Ianuary 13 The company sold merchandise with a retail value of $5,280 and a cost of $3,560 to Liu Corporation, invoice dated January 13. lanuary 15 The company paid $600 cash for freight charges on the nerchandise purchased on January 7 . lanuary 16 The conpany recelved $4,009 cash fron Delta Company for computer services provided. lanuary 17 The company paid Kansas Corporation for the involice dated January 7 , net of the discount. lanuary 20 The conpany gave a price reduction (allowance) of $500 to Liu Corporation and credited Liu's accounts receivable for that amount. Ianuary 22 The company received the balance due fron Liu Corporation, net of the discount and the allowance. lanuary 24 The conpany returned defective nerchandise to Kansas Corporation and accepted a credit against future purchases (debited accounts payable). The defective nerchandise invoice cost, net of the discount, was $496. Ianuary 26 The company purchased $9,e90 of nerchandise from Kansas Corporation with terms of 1/10, n/30, FOB destination, invoice dated January 26. lanuary 26 The company sold merchandise with a $4,640 cost for $5,890 on credit to KC, Incorporated, involce dated January 26. Ianuary 31 The company paid cash to Lyn Addie for 10 days' work at $125 per day. 'ebruary 1 The company paid $2,475 cash to Hillside Mall for another three months' rent in advance. Cebruary 3 The company paid Kansas Corporation for the balance due, net of the cash discount, 1 ess the $496 credit from nerchandise returned on January 24. Cebruary 5 The company paid $600 cash to Facebook for an advertisement to appear on February 5 only. toruary 11 The conpany received the balance due fron Alex's Engineering Company for fees billed on January 11. toruary 15 Santana Rey withdrew $4,890 cash fron the conpany for personal use. toruary 23 The conpany sold merchandise with a $2,660 cost for $3,220 on credit to Delta Company, invoice dated February 23. tbruary 26 The company paid cash to Lyn Addie for elght days' work at $125 per day. toruary 27 The company reinbursed Santana Rey $192 cash for business autonobile nileage. The company recorded the reinbursenent as "Mileage Expense." March 8 The company purchased $2,730 of computer supplies fron Harris office Products on credit with terms of n/30, FOB destination, involice dated March 8 . March 9 The company received the balance due fron Delta Company for merchandise sold on February 23. March 11 The company paid $960 cash for ninor repairs to the company's computer. March 16 The conpany received $5,260 cash fron Dream, Incorporated, for conputing services provided. March 19 The company paid the full anount due of $3, 830 to Harris office Products, consisting of anounts created on Decenber 15 (of $1,100 ) and March 8. March 24 The company billed Easy Leasing for $9,047 of conputing services provided. March 25 The conpany sold merchandise with a $2,692 cost for $2,890 on credit to wildcat Services, invoice dated March 25. March 30 The conpany sold merchandise with a $1,e48 cost for $2,22 on credit to IFM conpany, invoice dated March 30. March 31 The conpany reinbursed Santana Rey $128 cash for business autonobile nileage. The company recorded the reinbursenent as "Mileage Expense." he following additlonal facts are avallable for preparing adjustments on March 31 prlor to financlal statement reparation. a. The March 31 amount of computer supplies stll avallable totals $2,005. b. Prepald Insurance coverage of $555 explred during this three-month period. c. Lyn Addle has not been pald for seven days of work at the rate of $125 per day. d. Prepald rent of $2,475 explred during this three-month period. e. Depreclation on the computer equipment for January 1 through March 31 is \$1,250. f. Depreclation on the office equipment for January 1 through March 31 is $400. g. The March 31 amount of merchandlse inventory still avallable totals \$704. tri BUAIVEA8 SOLUTIONB Inocme statament For Thros Monthe Endad Maroh 31, 2022