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Sentana Rey created Business Solutions on October 1. 2019. The company has been successful and its list of customers has grown. To accommodate the growth,

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Sentana Rey created Business Solutions on October 1. 2019. 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 ench customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019. 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 Credit Debit 348,372 0 0 0 3,000 2,660 0 0 SBD 1.665 825 8.000 $ 480 20.000 hectunt Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 105.) Fasy Leasing 105.8 IFM CO 106.5 Liu Corp 105.6 Gomez Ce 106.7 Delta Co 106.8 KC, Inc. 106.9 Dream, Inc 119 Merchandise Inventory 126 Computer supplies 128 Prepaid Insurance 121 Prepaid rent 163 Office equipent 164 Accumulated depreciation office equipment 167 Computer equipment 156 Accumulated depreciation-Computer equipment 201 Accounts payable 21e Wages payable 236 Uneared computer services ren 301 5. Rey, Capital 302 5. Rey, withdrawals 403 Computer services revenue Sales 414 Sales returns and allowances 415 Sales discounts SO Cost of goods sold Depreciation expense-office equipment 613 Depreciation expense-Computer equipment 623 Mages expense Insurance expense Rent expense Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense Computer 1.250 1,100 500 1,500 30,360 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 Jan. 4 The company paid cash to Lya Addie for five days work at the rate of 5125 per day. Four of the five days relate to wages payable that were accrued in the prior year 5 Santana Rey invested an additional $25,000 cash in the company. The company purchased 55,000 of merchandise from Kansas Corp. with terms of 1/10, 1/30, F08 shipping point. invoice dated Juary 7. The company received $7,662 cash from Get coas full payment on its account 11 The company completed a five-day project for Alex Engineering Co. and billed it 35,500, which is the total Frict of 57.00 less the advance payment of $1.500. The company debited earned computer Services Tevenue for 51.500 1 The old merchandise with retall value of 55,200 and a cost of $1.500 to Liu Cor. Invoice dated 15 The many paid 1000 cash for freight charges on the merchandise purchased on January 11 The towny received 14,000 cash from Delta Co, for computer services provided 12 the company maid Kansas Corp. for the invoice dated January 1, net of the discount Company Caprice reduction Allowance of $500 tot corp.and credited Liu's accounts receivable for The company received the balance de trois cor, of the discount and the allowance The cowy returned defective merchandise to score and accepted a credit against future purcha Gebited to payahin) The defect O ne the discount 06 In response to requests from customers. S. Rey will begin selling computer software The company wil extend credit terms of 1/10,n/, 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 Jan The company paid cach to kyn 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 Santana Rey Invested an additional 525.000 cash in the company 7 The company purchased 5.0 of merchandise from Kansas Corp with terms of 1/10, 1/30, 70 shipping point Invoice dated January 7. The company received $2.668 cash from bones Co. as full payment on its account 11 The company completed a five day project for Alex's Engineering Co. And billed it $5.500, wich is the total price of $7,000 less the advance payment of $1.500. The company debited unearned Computer Services Revenue for $1,500 13 The company sold merchandise with a retail value of $5,200 and a cost of $3,560 to Ciu Comp. Invoice dated January 13. 15 The company paid $600 cash for Freight charges on the merchandise purchased on January 16 The company received $4.000 cash from Delta Co. for computer services provided. 17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 The company gave a price reduction (allowance) of $500 to Liu Corp., and credited Liu's accounts receivable for that amount 22 The company received the balance due from Li Corp. net of the discount and the allowance 24 The company returned defective merchandise to ans Corp. and accepted credit rainst future purchases (debited accounts payable). The defective mechandise involce cost, net of the discount, was 5496 25 The company purchased $9.000 of chandise from Kassas Corp. with terms of 1/10, 1/30 FOB destination Lnvoice dated January 26. 26 The company soul merchandise with $4,640 cost for $5, Bon credit to Incoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days work at 3125 per day Feb. 1 The company paid $2,475 cash to Hillside Mall for other three month rent in avance The company paid Kansas Corp. for the balance duet of the cash discount, less the $496 credit from archandise returned on January 24 5 The company paid 5600 cash to Facebook for an advertisement to appear on February only 11 The company received the balance due from Alex's Engineering Col for fees Villed w Janary 11. 15 Santana Hey withdrew 14,800 cash from the company for personal use. 23 The company sold merchandise with 4 52,0 cost for $3,220 credit to Delta Co Invoice dated February 23 26 The company paid cash to lyhole for eight days' work at $2 per day 27. The company reimbursed Santana Rey 5102 for business automobile silence. The company recorded the relebursement as Mileage Expense Har The company purchased $2,730 of computer supplies from Harris office to credit with terms of /30. FOB destination, invoice dated March 9 The company received the balance due from Deltaco forchandise on ebruary 23. 11 The company paid $960 cash for winor repairs to the core poter 16 The company received $5,260 cath from Dres, Inc. for computing services provided 19 The company uld the full amount der of $3,830 to Harris office Products consisting of count created on De ber 15 (of $1,100) and March 24 The company billed Easy Leasing for 59,047 of computing services provided 25 The company sold merchandise with a $2,007 cost for 2,000 credit to Nildcat Services, Invoice dated March 25. 30 The company sold merchandise with $1,008 cost for $2,220 on credit to Company. Iwoice dated Merch 30 31 The company reimbursed Santan Rey 5138 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 $2.005 b. Prepaid Insurance coverage of 5555 expired during this 3-month period c. Lyn Addie has not been paid for seven days of work at the rate of $125 per day d. Prepaid rent of $2.475 expired during this 3-month period e. Depreciation on the computer equipment for January 1 through March 31 is $1.250, f. Depreciation on the office equipment for January 1 through March 31 is $400. The March 31 amount of merchandise inventory still available totals $704 2. Post the journal entries in part 1 to the accounts balances as of December 31, 2019 the company's general ledger Note: Begin with the ledgers post-closing adjusted 1 Can Deut 100 Accounts Receivable inginering D Debut alance Date

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