Seriai ProDiem Business solutions LU P1, P2, P5, P4 [The following information applies to the questions displayed below Santana Rey created Business Solutions on October 1, 2017 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, 2017. 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. Account Titlel No Debit $48,372 Credit 101 Cash 106.1 Alexs Engineering Co. 106.2 Wildcat Services e 106.3 Easy Leasing 106.4 IFM CO. 106.5 Liu Corp. 106.6 Gomez Co. Bleee 2 668 106.7 Delta Co. 186.8 KC, Inc. Dream, Inc. Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-office equipment Computen eguipment Accumulated depreciation-computen equipment Accounts payable Wages payable Unearned computen services revenbe Conmon $tock Retained eannings Dividends Computer services revenue Sales Sales returns and allowances Sales discounts Enst nf annds old 106.9 119 58B 126 1665 825 128 131 163 400 164 20 eee 167 168 201 210 580 236 laee 307 318 319 403 413 414 415 SA2 Nex Pirev Dividends 7,360 403 Computer services revenue Sales 413 414 Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 415 502 612 613 623 637 640 652 655 676 677 684 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 availeble on consulting fees. Additional accounts (Nos. 119. 413, 414 415, and 502) are added to its general ledger to accommodete the company's new merchandising activitis, Alsol Business Solutions does not use reversing entries andi therefore all revenue and expense accounts have zero beinning balances as of January 1 2018. its transactions.for January through March follow 4 The campany paid cash to Lyn Addie for five days work atitherateO 125 pePidayFour of the five days relate to wages payable that ere acchued in the prion year 5 Santana Rey invested an additional $25,8ee cash in the company in exchange gn more connon stockn 7 The company purchased $5,30e of merchandise from Kansas Cons. tenns ofW n/30F0B shipping point invoice dated January 7 9 The company received $2,668 cash from Goe co as fulpaymentonAts actounti 11 The company completed a five-day project for Alexs Engineering Cad bned ic $5500 whichils the total price of $7, eee less the advance paynent of $1580 13 The company sold merchandiselith a retail alle ofS200 and cost of3s6eto iu conp nveide bated January 13 15 The company paid $600 cashiforllfreight chargeson thenerchandise.punchased onlianuarv 16 The company received $4, e08 cash fron Delta colFon computenenacephoMEded Jan. 17 The comp any paid Kansas CorplFor the invio1ke dated panuary het g the dIscount 28 Liu Corp. returned $56e of defective herchandise from 4ts invodceidated panua13hereturned nenchandise, Next KPrev ges on the merchandise purchased on January 7 LUMpany received $4,ee0 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 Liu Corp. returned $500 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $320 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products in cost of goods sold.) 22 The company received the balance due from Liu Corp., net of both the discount and the credit fon the returned merchandise. 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $496. 26 The company purchased $9,eee of merchandise from Kansas Corp. with terns of 1/10, n/30, FOB /destination invoice dated January 26. 26 The company sold merchandise with a $4,640 cost for $5,see on credit to KC, Inc invoice dated January 26. 31 The company paid cash to Lyn Addie for 18 days work at $125 per day 1 The company paid $2,475 cash to Hillside Mall for another three nonthsent in advance 3 The company paid Kansas Corp. for the balance due, net ofi.the cash disdount, less the $496 anount in the credit memorandum. S The company paid $6ee cash to the local newspapen for an advertising insert Sn today's paper 11 The company received the balance due from Alex's Engineering Co. for fees billed on banuary 11 Feb. 15 The company paid $4,8ee cash in dividends. 23 The company sold merchandise with al $2,660 cost for $3,220 on credit to Delta Coinvoice dated February 23. 26 The company paid cash to Lyn Addie for eight days ork at $125 per day 27 The company reimbursed Santana Rey for business autonobille mileage(50 m1esat se.32 per rile). 8 The company purchased $2,730 of computer supplies from Harris office Products on icredit,invoice dated March 83 9 The company receivedithe balance due from Delta Co. for merchandise oid on February 23. 11 The company paid $960 cash for minor repairs to the company scomputen 16 The company received $5,260 cash from Oream Inc. for coputing services provided. 19 The company paid the full amount due to Harnis Office Products consisting of amounts created on Decenber 15 (of $1,10e) and March B. 24 The company billed Easy Leasing for $9,847 df computng services proide. 25 The company sold merchandise with a $2,682 costifor 2.see on chedit dcat Services Envo1ce dated March 25. Mar. 3e The company sold nerchandise with a s1.848 cost fon $2 22e on credat to IF Company snvoice dated Narch 30 31 The company ceimbursed Santana Rey for business autonobile leage (4ee milesat $032Ben mile) The following additional facts are available for preparing adjustments on March 31 prior to finarcialistatement preparation a. The March 31 amount of computer supplies stillavailable totals $2 005 b. Three more months have expired since the cmpany purchased tsannubinsurance policv ata $2,220 cost for 12 Prev 31 The company reimbursed Santana Rey for business automobile mileage (400 miles at $0.32 per mile). 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. Three more months have expired since the company purchased its annual insurance policy at a $2,220 cost for 12 months of coverage c. Lyn Addie has not been paid for seven days of work at the rate of $125 per day d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $825. 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. g. The March 31 amount of merchandise inventory still available totals $704 Part 6 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2018 BUSINESS SOLUTIONS Balance Sheet March 31, 2018 Assets Current assets 2 P Course Home G Sinclair Portal a Amazon.com: Onli.. My accounts cha... lem Part III i Required information BUSINESS SOLUTIONS Balance Sheet March 31, 2018 Assets Current assets Total current assets 03 Plant assets Office equipment, net Computer equipment, net Total plant assets 0 Total assets 0 Liabilities Current liabilities