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 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 Recelvable 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. Howevet, 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 now merchandising activities. Its transactions for January through March follow: Jan. 4 The company paid cash to Lyn Addie for five days' work at the rate of $195 per day. Four of the five days relate to wages payable that yore acerued in the prior year. 5 Santana Rey invented an additional \$324,300 canh in the conpany in exehange for more conson atoek. 7 The company purchased $7,600 of merehandise trom Kansas Corp. With terms of 1/10,n/30, Fon shipping point, invoice dated January 7 . 9 The company recefved $2,788 cash from Gonez co. as full paynent on its account, 11 The company completed a five-day project for alex's Engineering co. and billed it $5,330, which is the total price of $6,650 less the advanee paynent of $1,320. The coepany debited Unearned coeputer Services Revenue for $1,320. 13 The company sold merehandise with a retail value of $4,800 and a cost of $3,420 to Liu corp., invelce dated Jantary 13 . 15 The company paid $740 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,150 cash from pelta co. for compater 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 $700 to tiu Corp+. and credited Ilu's aceoants receivable for that anount. 22 The company received the balance due fron tifu corp., net of the diacenat and the allowance. 24 The company returned defective merchandise to Kansas corp. and accepted a eredit againat, future purohases (debited accounts payable). The defective nerchandise involee eost, net of the drscount, was $476. 26. The company purchased $9,000 of merchandise fron Kansas corp. With terits of 1/10, A/30, POB for that amount. 24 . The conpany received the halance due from Liu Corp., net of the discount and the allowance. purehasen koturned dofective merchandise to Kansas Corp. and accepted a eredit against future Was $476. 26 The company purchased 59,000 of morchandise from Kansan Corp. with terma of 1/10, n/30, Fon destination, invoice dated January 26 . 26 The company sold merchandise with a $4,550 cont for $5,940 on eredit to kC, Ino., involce dated Janusry 26 . 31 The eompany paid cash to Lyn Addie for 10 dayse work at $195 per day, Feb. 1 The company paid $2,475 cash to Hillside Mall for another three monthet rent in advance. 3 The company paid Kansan corp. for the balanee due, net of the cash discoust, less the $476 oredit from mexchandise 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's Bngineering Co. for fees billed on January 11 . 15 The company paid a $4,760 cash dividend. 23. The company sold nerchandise with a $2,530 cost for $3,350 on oredit to Delta co., Involce dated February 23 . 26 The company paid cash to Lyn Nddie for elght days work at \$195 per day. 27 The company reimbursed Santana Hey $12 s canh for business automobile mileage. The conpany recorded the reinbarsement as "Milleage Expense." Mar. 8-The eompany purchaned $2,820 of compater mupplies fron Harris oftice Products on oredit with terms of n/30, FOB destination, involee dated March 8. 9 The company received the balance due fron Delta Co. for merchandise Bold on Tebruary 23 . 11 The company paid $950 cash for minor repairs to the company's conputer. 16 The company received $5,430 cash fron Dream, . Ind., for eorputing services provided. 19 The conpany paid the tu11 amount due of $4,050 to Harris office Produets, eonsisting of anounts ereated on Decenber 15 (of $1,230 ) and March 8 . 24 The company billed Raby Leasing for 59,147 of computing serviees provided. 25 The company sold merchandise with a $2,052 cost, for $2,950 on eredit to wildoat servieen, fnvoice dated March 25 . 30 The company bold nerchandise with a $1,178 cost for $2,380 on aredit to 19M Conpany, involee dated March 30 . 31 The company reimihirsed santana Rey $160 cash for business auconobile mileage. Tho conpany recorded the relmbursement as "Mileage Expense." The following additional facts are available for preparing adjustments on March 31 prioc 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. Pronalid rent of \$2 475 exniend durina this 3.menth nerind 16 The company received 55,430 cash from Dream, Ine., for conputing aervicen provided. 19 The conpany paid the full amount due of 54,050 to liarris oftice producta, conaibting of anounts created on December 15 (of 51,230 ) and Mareh 8 . 24. The company billed Baby Leasing for 59,147 of computing serylees proyided, 25. The company sold merchandise with a $2,052 cost for $2,950 on credit to Wildeat services, tavoice 30 The company sold merchandiee with a $1,178 cont tor $2,380 on eredit to try Company, invoice datad March 30. 31 The company reimburbed santana lley $160 cash for business autonobile mileage. The company recorded 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 avaliable 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. e. Depreciation on the computer equipment for January 1 through March 31 is $1.050. f. Depreciation on the office equipment for January 1 through March 31 is $330. 9. The March 31 amount of merchandise inventory still available totals $504. Part 6 6. Prepare a classified balance stoet (from the adjusted trial balance) as of March 31,2020. (1) Required information Required information