Sarah Katz created Katz Solutions on October 1, 2015. 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, 2015. Sarah 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 Account Title Dr. Account Tide Dr. Cr. 5 $00 1,500 3,000 7360 101 Cash $48,372 106.I Alex's Engineering Co 106.2 Wildcat Services 106.3 Easy Leasing 1064 IFM Co 106.5 Lu Corp 106.6 Gomez Co. 06.7 Delta Co 1068 KC, Inc 106.9 Dream Inc. 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 DiMidends 403 Computer services revenue 413 Sales 414 Sales returns and allowances 415 Sales discounts 02 Cost of goods sold 612 Depreclation expense Office equipment 3,000 50 2,668 119 Merchandise inventory 126 Computer supplies 580 1,665 Computer equipment 28 Prepald Insurance 131 Prepaid rent 163 Office equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertsing expense 676 Mleage expense 77 Miscellaneous expenses 8,000 Office equipment 400 167 Computer equipment 0,000 1,250 1,100 Computer equipment 201 Accounts payable In response to requests from customers, Sarah 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. Also, Katz Solutions does not use reversing entries and, therefore, all revenue and expense accounts have zero beginning balances as of January 1, 2016. Its transactions for January through March follow 4The company paid cash to Lyn Addie for five days' work at the rate of $125 per day. Four of the five days relate to wages payable that were accrued in the prior year 5Sarah Katz invested an additional $25,000 cash in the company in exchange for more common stock 7The company purchased $5,800 of merchandise from Kansas Corp, with terms of 1/10, n/30 Jan