Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Santana Rey created Business Solutions on October

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Santana 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 each customet. 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. 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 Lyn Nddie for five days' work at the rate of \$195 per day. Four of the five days relate to wages payable that were acerued in the prior year. 5 Santana Rey invested an additional $24,300 pash in the company in exchange for more common stock. 7 The company purchased $7,600 of merchandise from Kansas Corp. With teras of 1/10, n/30, Pon shipping point, invoice dated January 7. 9 The company received $2,788 cash from Gomez co. as full payment on its account. 11 The company completed a five-day project for Alex's Engineering co. and b11led it $5,330, which 10 the total price of $6,65010s5 the advance payment of $1,320. The company debited Unearned conputer Services Revenue for $1,320. 13 The company sold merchandise with a retail value of $4,800 and a cost of $3,420 to tiu corp., involee dated January 13. 15 The company paid $740 eash for freight charges on the merchandise purchaned on January 7. 16 The company received $4,150 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 reduetion (allowance) of $700 to Liu Corp., and credited hifu's accounts receivable for that amount. 22 The company received the balance due from Liu corp.. net of the diacount and the allowance. 24 The coopany returned defective merehandise to Kansas corp. and accepted a credit against future purchases (debited accounts payable). The defective marchandise involce cost, net of the discount, vas $476. 16 The company received $4,150 cash from Delta Co. for computer services provided. 17 The company paid Kansas Corp. for the involce dated January 7 , net of the discount. 20 The company gave a price reduction (allowance) of $700 to Liu Corp. and eredited tiu's accounts receivable for that amount. 22. The company received the balance due from wiu Corp., net of the discount and the allowance. 24 The company returned defective merchandise to kansas Corp. and accepted a credit against tuture was $476. (debited accounts payable). The defective merchandise involce cost, net of the discount, 26 The company purchased $9,000 of merchandise from Kansas Corp. with terms of 1/10, n/30, FoB destination, invoice dated January 26 . 26 The company sold merchandise with a $4,550 cost for $5,940 on eredit to Kc, Inc., involce dated January 26 . Feb. 31 The company paid cash to Lyn Addie for 10 days' work at $195 per day. 1 The company paid $2,475 cash to Hil1side Mall for another three months rent in advance. 3. The company paid Kansas corp. for the balance due, net of the cash discount, less the \$476 oredit bf fom merchandise returned on January 24. 5 The company paid $470 cash to Facebook for an advertisenent to appear on February 5 only. 11 The company received the balance due from Alex'g Engineering Co. for fees billed on January 11 . 15 The company paid a $4,760 cash dividend. 23 The company sold merchandise with a $2,530cost for $3,350 on eredit to Delta co., involce dated Eebruary 23 . 26 The company paid cash to Lyn Addie for elght dayg' work at \$195 per day. 27 The company reimbursed Santana Rey $128 cash for business automobile mileage. The conpany recorded the reimburgement as "Mileage Expense." Mar. 8 The company purchased $2,820 of computer supplies from Harris office products on credit with terms of n/30, FOB destination, involce dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23 . 11 The company paid $950 cash for minor repairg to the company's conputer. 16 The company received $5,430 cash from Dream, Ine, for conputing Irervices provided. 19 The company paid the full amount due of $4,050 to Harris office Products, consisiting of amounts created on December 15 (of $1,230 ) and March 8 . 24 The eompany billed Easy Leaning for $9,147 of computing servicen provided. 25 The company sold merchandise with a $2,052 cost for $2,950 on credit to wildcat Services, invoice dated Mareh 25 . 30 The company sold merchandise with a $1,178 cost for $2,380 on eredit to IFM conpany, invoice dated March 30 . 31. The company rejmbursed gantans Rey $160 cash for business automobile nilleage. The company recorded the reimbirsenent as "Mileage Rxponse." The following additional facts are avaliable for preparing adjustments on March 31 prior to financial statement preparation: a. The March 31 amount of computer supplies still avallable totals $2,035. b. Prepaid Insurance coverage of $627 expired during this 3 -month period. c. Lyn Addie has not been paid for seven days of work at the rate of $195 per day. d. Prepaid rent of $2,475 expired during this 3-month period. Pequired information Required information Required information

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IT Auditing Using A System Perspective Premier Reference Source

Authors: Robert Elliot Davis

1st Edition

1799855481, 978-1799855484

More Books

Students also viewed these Accounting questions

Question

Evaluate three pros and three cons of e-prescribing

Answered: 1 week ago