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 Receivable account. This change allows the company to continue using the existing chart of accounts. 167168201210236307318319403413414415502612613623637640652655676ComputerequipmentAccumulateddepreciation-computerequipmentAccountspayableWagespayableUnearnedcomputerservicesrevenueCommonstockRetainedearningsDividendsComputerservicesrevenueSalesSalesreturnsandallowancesSalesdiscountsCostofgoodssoldDepreciationexpense-officeequipmentDepreciationexpense-ComputerequipmentWagesexpenseInsuranceexpenseRentexpenseComputersuppliesexpenseAdvertisingexpenseMileageexpense20,3001,0701,2906601,4907,21200000000000000 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 Addie for five days' work at the rate of $165 per day. Pour of the five days rolate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $23,900 cash in the company in exchange for more common stock. 7 The company purchased $7,500 of merchandise from Kansas Corp. with terms of 1/10,n/30,FOB shipping point, invoice dated January 7. 9 The company received $2,688 cash from Gomez Co. as fu11 payment on its account. 11 The company completed a five-day project for Alex'in Engineering Co. and billed 1t $5,420, which is the total price of $6,910 less the advance payment of $1,490. The company debited Unearned Computer services Revenue for $1,490. 13 The company sold nerchandise with a rotail value of $4,400 and a cost of $3,430 to Liu corp., invoice dated January 13. 15 The company paid $690 cash for freight eharges on the merchandise purchased on January 7. 16 The company received $4,170 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 $700 to Liu Corp., and eredited Liu's accounts receivable for that amount. 22 The company received the balance due from Liu corp., net of the discount and the allowance. 24 The company roturned defective merchandise to Kanbas corp. and accepted a credit against future purchases (debited accounts payable). The defective merchandine involce cost, net of the discount, Was $496. 26 The company purchased $9,400 of merehandise from Kansas Corp. With terms of 1/10, n/30, FOB destination, invoice dated January 26. 26 The company sold merchandise vith a $4,570 cost for $5,870 on eredit to kc, Inc., involee dated January 26 . 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day, Feb. 1 The company paid $2,565 cash to Hillside Ma11 for another three months' rent in advance. 3 The company paid Kansas corp. for the balance due, net of the cash discount, leas the $496 eredit from merchandibe returned on January 24 . 24 The company returned defective morchandise to Kansas corp. and accepted a oredit against future purehases (debited accounts payable). The defoctive merchandise invoice cost, net of the discount, was $496. 26. The company purchased $9,400 of merchandise from Kansas Corp. With terms of 1/10, n/30, Foa destination, involce dated January 26. 26. The company sold merchandine with a $4,570 cost for $5,870 on credit to kc, Inc., invoice dated Jantary 26. Feb. 1 The company paid $2,565 eash to Hillside Mal1 for another three montha' rent in advance. 3. The company paid Kansas Corp. for the balance due, net of the cash discount, less the \$496 credit from merchandise returned on January 24. 5 The company paid $440 canh to Facebook tor an advertisement to appear on February 5 only. 11 The company received the balance due from Nlex's Engineering Co. for fees billed on January 11. 15 The company paid a $4,760 cash dividend. 23 The company sold merchandise with a $2,470 cost for $3,350 on credit to Delta co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The company reimbursed Santana Rey $320 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,910 of computer isupplieg from Harris office products on credit with termi of n/30, Fon destination, invoice dated Mareh 8 . 9 The company received the Jalance due fron Delta Co. for inerchandise sold on February 23 . 11 The company paid $780 cash for minor repaira to the company's computer. 16. The company received $5,300 cash from Dream, Ine. for computing alervices provided. 19 The company paid the fuil amount due of 54,200 to Harris office products, consisting of anounts ereated on December 15 (of 51,290 ) and March 8 , 24 The company billed Rany heaning for $9,157 of computing services provided. 25 The company sold merchandise with a $2,192 cont for $2,820 on credit to Wildeat 8ervicen, invoice dated March 25. 30 The company bold merchandiee With a $1,078 cont for $2,260 on eredit to IFM Company, invoice dated Mareh 30. 31. The company reimbursed Santana key $96 cash for business automobile mileage. The coepany recorded the reimburiement an "Mileage Expense, " The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation: oreated on December 15 (of $1,290) and March 8 . 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,192 cost for $2,820 on credit to wildcat 5ervices, invoice dated March 25. 30 The company sold merchandise with a $1,078 cost for $2,260 on credit to IFM company, involce dated March 30. 31 The company reimbursed Santana Rey $96 cash 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 avallable totals $2,005. b. Prepaid Insurance coverage of $609 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $165 per day. d. Prepaid rent of $2,565 expired during this 3 -month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,070. f. Depreciation on the office equipment for January 1 through March 31 is $340. g. The March 31 amount of merchandise inventory still available totals $674. 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3 ) for the three months ended March 31,2020. 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 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 avallable 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 Addie for five days work at the rate of $165 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $23,900 cash in the company in exchange for more common stock. 7 The company purchased $7,500 of merchandise from Kansas Corp. with termn of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,688 cash from Gomez Co. as full payment on its account. 11 The company completed a five-day project for Mlex's Engineering co. and billed it $5,420, which is the total price of $6,910 less the advance payment of $1,490. The company debited Unearned Computer services Rovenue for $1,490. 13 The company sold merchandise with a retail value of $4,400 and a cost of $3,430 to Liu corp.. invoice dated January 13 . 15 The company paid $690 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,1 po 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 $700 to Liu corp., and credited liu's accounts receivable for that amount. 22 The cospany received the balance due from Liu corp., net of the discount and the allowance. 24 The company returned defective merchandise to kansas corp. and accepted a credit against future purchases (debited accounts payable). The defective morchandise invoice cost, net of the discount, was $496. 26 The company purchased $9,400 of merchandise fron Kansas Corp. with terns of 1/10,n/30, Fos destination, invoice dated January 26 . 26 The company sold merchandise with a $4,570 cost for $5,870 on credit to KC, Inc.. invoice dated January 26 . 31 The company paid cash to Lyn Addie for 10 days" work at $165 per day. Feb. 1 The company paid $2,565 cash to Hillside Mall for another three months rent in advance. 3 The company paid Kansas Corp. for the balonce due, net of the cash discount, less the $496 credit 11 The company paid casn to byn Adare tor 10 days work at $163 per day, Feb. 1 The company paid $2,565 cash to Hillside Hall for another three months" rent in advance. 3 The company paid Kansas corp. for the balance due, net of the cash discount, less the \$496 oredit from merchandine returned on January 24 . 5 The company paid $440 cash to Facebook for an advertinenent to appear on Fobruary 5 only. 11 The company received the balance due from Alex' B Engineering Co. for fees billed on January 11. 15 The company paid a $4,760 cash dividend. 23 The company sold merchandise with a $2,470 cost for $3,350 on credit to Delta Co., involce dated February 23. 26 The company paid cash to t.yn Addie for eight days' work at $165 per day. 27 The coinpany roimbursed Santana Rey $320 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchaned $2,910 of computer supplien fron Harria office producti on eredit with terma of n/30, FOB destination, inyolee dated March 8 . 9 The company received the balance due from belta Co. for merchandine sold on February 23. 11 The company paid $780 cash for minor repairs to the company's computer. 16 The company received $5,300 cash from Dream, fne, for computing services provided. 19 The company paid the ful1 anount due of 54,200 to Harrin office produoti, conadating of anounta ereated on Decenber 15 (of 51,290 ) and Mareh 24 The company billed Basy Leasing for 59,157 of eomputing services provided. 25 The company sold merchandise with a 52,192 cost for 52,020 on eredit to Nildeat services, involce dated Mareh 25. 30 The company sold merchandilse With a $1,078 cost for $2,260 on credit to irM company, invoice dated March 30. 31 The company reimbursed Santana Mey $96 cash for businens autonobile mileage. The company recorded the reimburaement an "Mileage Expente." The following additional facts are avallable for preparing adjustments on March 31 prior to financial statement preparation: a. The March 31 amount of computer supplies still available totais $2,005. b. Prepaid Insurance coverage of $609 expired during this 3 -month period. c. Lyn Addie has not been paid for seven days of work at the rate of $165 per day. d. Prepaid rent of $2,565 expired during this 3 -month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,070. f. Depreciation on the office equipment for January 1 through March 31 is $340. 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3 ) for the three months ended March 31,2020 . 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 Receivable account. This change allows the company to continue using the existing chart of accounts. 167168201210236307318319403413414415502612613623637640652655676ComputerequipmentAccumulateddepreciation-computerequipmentAccountspayableWagespayableUnearnedcomputerservicesrevenueCommonstockRetainedearningsDividendsComputerservicesrevenueSalesSalesreturnsandallowancesSalesdiscountsCostofgoodssoldDepreciationexpense-officeequipmentDepreciationexpense-ComputerequipmentWagesexpenseInsuranceexpenseRentexpenseComputersuppliesexpenseAdvertisingexpenseMileageexpense20,3001,0701,2906601,4907,21200000000000000 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 Addie for five days' work at the rate of $165 per day. Pour of the five days rolate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $23,900 cash in the company in exchange for more common stock. 7 The company purchased $7,500 of merchandise from Kansas Corp. with terms of 1/10,n/30,FOB shipping point, invoice dated January 7. 9 The company received $2,688 cash from Gomez Co. as fu11 payment on its account. 11 The company completed a five-day project for Alex'in Engineering Co. and billed 1t $5,420, which is the total price of $6,910 less the advance payment of $1,490. The company debited Unearned Computer services Revenue for $1,490. 13 The company sold nerchandise with a rotail value of $4,400 and a cost of $3,430 to Liu corp., invoice dated January 13. 15 The company paid $690 cash for freight eharges on the merchandise purchased on January 7. 16 The company received $4,170 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 $700 to Liu Corp., and eredited Liu's accounts receivable for that amount. 22 The company received the balance due from Liu corp., net of the discount and the allowance. 24 The company roturned defective merchandise to Kanbas corp. and accepted a credit against future purchases (debited accounts payable). The defective merchandine involce cost, net of the discount, Was $496. 26 The company purchased $9,400 of merehandise from Kansas Corp. With terms of 1/10, n/30, FOB destination, invoice dated January 26. 26 The company sold merchandise vith a $4,570 cost for $5,870 on eredit to kc, Inc., involee dated January 26 . 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day, Feb. 1 The company paid $2,565 cash to Hillside Ma11 for another three months' rent in advance. 3 The company paid Kansas corp. for the balance due, net of the cash discount, leas the $496 eredit from merchandibe returned on January 24 . 24 The company returned defective morchandise to Kansas corp. and accepted a oredit against future purehases (debited accounts payable). The defoctive merchandise invoice cost, net of the discount, was $496. 26. The company purchased $9,400 of merchandise from Kansas Corp. With terms of 1/10, n/30, Foa destination, involce dated January 26. 26. The company sold merchandine with a $4,570 cost for $5,870 on credit to kc, Inc., invoice dated Jantary 26. Feb. 1 The company paid $2,565 eash to Hillside Mal1 for another three montha' rent in advance. 3. The company paid Kansas Corp. for the balance due, net of the cash discount, less the \$496 credit from merchandise returned on January 24. 5 The company paid $440 canh to Facebook tor an advertisement to appear on February 5 only. 11 The company received the balance due from Nlex's Engineering Co. for fees billed on January 11. 15 The company paid a $4,760 cash dividend. 23 The company sold merchandise with a $2,470 cost for $3,350 on credit to Delta co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The company reimbursed Santana Rey $320 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,910 of computer isupplieg from Harris office products on credit with termi of n/30, Fon destination, invoice dated Mareh 8 . 9 The company received the Jalance due fron Delta Co. for inerchandise sold on February 23 . 11 The company paid $780 cash for minor repaira to the company's computer. 16. The company received $5,300 cash from Dream, Ine. for computing alervices provided. 19 The company paid the fuil amount due of 54,200 to Harris office products, consisting of anounts ereated on December 15 (of 51,290 ) and March 8 , 24 The company billed Rany heaning for $9,157 of computing services provided. 25 The company sold merchandise with a $2,192 cont for $2,820 on credit to Wildeat 8ervicen, invoice dated March 25. 30 The company bold merchandiee With a $1,078 cont for $2,260 on eredit to IFM Company, invoice dated Mareh 30. 31. The company reimbursed Santana key $96 cash for business automobile mileage. The coepany recorded the reimburiement an "Mileage Expense, " The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation: oreated on December 15 (of $1,290) and March 8 . 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,192 cost for $2,820 on credit to wildcat 5ervices, invoice dated March 25. 30 The company sold merchandise with a $1,078 cost for $2,260 on credit to IFM company, involce dated March 30. 31 The company reimbursed Santana Rey $96 cash 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 avallable totals $2,005. b. Prepaid Insurance coverage of $609 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $165 per day. d. Prepaid rent of $2,565 expired during this 3 -month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,070. f. Depreciation on the office equipment for January 1 through March 31 is $340. g. The March 31 amount of merchandise inventory still available totals $674. 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3 ) for the three months ended March 31,2020. 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 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 avallable 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 Addie for five days work at the rate of $165 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $23,900 cash in the company in exchange for more common stock. 7 The company purchased $7,500 of merchandise from Kansas Corp. with termn of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,688 cash from Gomez Co. as full payment on its account. 11 The company completed a five-day project for Mlex's Engineering co. and billed it $5,420, which is the total price of $6,910 less the advance payment of $1,490. The company debited Unearned Computer services Rovenue for $1,490. 13 The company sold merchandise with a retail value of $4,400 and a cost of $3,430 to Liu corp.. invoice dated January 13 . 15 The company paid $690 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,1 po 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 $700 to Liu corp., and credited liu's accounts receivable for that amount. 22 The cospany received the balance due from Liu corp., net of the discount and the allowance. 24 The company returned defective merchandise to kansas corp. and accepted a credit against future purchases (debited accounts payable). The defective morchandise invoice cost, net of the discount, was $496. 26 The company purchased $9,400 of merchandise fron Kansas Corp. with terns of 1/10,n/30, Fos destination, invoice dated January 26 . 26 The company sold merchandise with a $4,570 cost for $5,870 on credit to KC, Inc.. invoice dated January 26 . 31 The company paid cash to Lyn Addie for 10 days" work at $165 per day. Feb. 1 The company paid $2,565 cash to Hillside Mall for another three months rent in advance. 3 The company paid Kansas Corp. for the balonce due, net of the cash discount, less the $496 credit 11 The company paid casn to byn Adare tor 10 days work at $163 per day, Feb. 1 The company paid $2,565 cash to Hillside Hall for another three months" rent in advance. 3 The company paid Kansas corp. for the balance due, net of the cash discount, less the \$496 oredit from merchandine returned on January 24 . 5 The company paid $440 cash to Facebook for an advertinenent to appear on Fobruary 5 only. 11 The company received the balance due from Alex' B Engineering Co. for fees billed on January 11. 15 The company paid a $4,760 cash dividend. 23 The company sold merchandise with a $2,470 cost for $3,350 on credit to Delta Co., involce dated February 23. 26 The company paid cash to t.yn Addie for eight days' work at $165 per day. 27 The coinpany roimbursed Santana Rey $320 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchaned $2,910 of computer supplien fron Harria office producti on eredit with terma of n/30, FOB destination, inyolee dated March 8 . 9 The company received the balance due from belta Co. for merchandine sold on February 23. 11 The company paid $780 cash for minor repairs to the company's computer. 16 The company received $5,300 cash from Dream, fne, for computing services provided. 19 The company paid the ful1 anount due of 54,200 to Harrin office produoti, conadating of anounta ereated on Decenber 15 (of 51,290 ) and Mareh 24 The company billed Basy Leasing for 59,157 of eomputing services provided. 25 The company sold merchandise with a 52,192 cost for 52,020 on eredit to Nildeat services, involce dated Mareh 25. 30 The company sold merchandilse With a $1,078 cost for $2,260 on credit to irM company, invoice dated March 30. 31 The company reimbursed Santana Mey $96 cash for businens autonobile mileage. The company recorded the reimburaement an "Mileage Expente." The following additional facts are avallable for preparing adjustments on March 31 prior to financial statement preparation: a. The March 31 amount of computer supplies still available totais $2,005. b. Prepaid Insurance coverage of $609 expired during this 3 -month period. c. Lyn Addie has not been paid for seven days of work at the rate of $165 per day. d. Prepaid rent of $2,565 expired during this 3 -month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,070. f. Depreciation on the office equipment for January 1 through March 31 is $340. 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3 ) for the three months ended March 31,2020