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. 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 $155 per day. Four of the five days relate to Mages payable that were accrued in the peior year. 5 Santana Rey invested an additional $24,760 cash in the company in exchange for nore common stock. 7 The comany purchased $7,600 of nerchandise from Kansas Corp. with terns of 1/10,n/30, F0B shipping point, invoice dated January 7. 9 The company received 52,878 cash from Gonez Co. as ful1 payment on its account. 11 The company completed a five-day project for Alex's Engineering Co. and billed it \$5,480, which is the total price of $6,810 less the advance paypent of $1,330. The conpany debited Unearned Computer Services Revenue for 13 The company sold merchandise with a retall value of $4,460 and a cost of $3,540 to liu Corp., invoice dated 51,330. January 13. 15 The company paid $760 cash for freight charges on the nerchandise purchased on January 7. 16 The company received $4,070 cash from Delta Co. for conputer services provided. 17 The company paid Kansas Corp. for the invoice dated January 7 , net of the discount. 29 The company gave a price reduction (allouance) of $460 to Liu Corp., and credited Liu's accounts receivable for 22 The company received the balance due from Liu Corp., net of the discount and the allowance. that amount. 24 The company returned defective merchandise to Kansas Corp, and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $476. 26 The coepany purchased $9,500 of merchandise froe Kansas Corp. With teres of 1/10, n/30, F0B destination. 26. The company sold merchandise with a $4,$10 cost for $5,870 on credit to KC, Inc., Invoice dated January 26. invoice dated Jamary 26 . 31 The company paid cash to Lyn Addie for 10 days' work at $155 per day. Feb. 1 The company paid $2,685 cash to Hillside 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 credit from merchandise returned on January 24. 5 The company paid $410 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 The company paid a $4,790 cash dividend. 23 The company sold merchandise with a $2,550 cost for $3,400 on credit to Delta Co,, involce dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $155 per day. 27 The company reimbursed Santana Rey $128 cash for business autonobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. 9 The company received the balance due,from Delta Co. for merchandise sold on February 23. 11 The company paid $800 cash for minor repairs to the company's computer. 16 The company received $5,270 cash from Dream, Inc., for cogputing services provided. 19 The company paid the full amount due of $3,880 to Harris office Products, consisting of amounts created on December 15 (of $1,110 ) and March 8 . 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,072 cost for $2,990 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,098 cost for $2,350 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $64 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 available totals $2,005 b. Prepaid Insurance coverage of $636 expired during this 3 -month period. c. Lyn Addie has not been paid for seven days of work at the rate of $155 per day d. Prepaid rent of $2,685 expired during this 3 -month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,210. f. Depreciation on the office equipment for January 1 through March 31 is $270 g. The March 31 amount of merchandise imventory still available totals $664 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 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. 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 $155 per day. Four of the five days relate to Mages payable that were accrued in the peior year. 5 Santana Rey invested an additional $24,760 cash in the company in exchange for nore common stock. 7 The comany purchased $7,600 of nerchandise from Kansas Corp. with terns of 1/10,n/30, F0B shipping point, invoice dated January 7. 9 The company received 52,878 cash from Gonez Co. as ful1 payment on its account. 11 The company completed a five-day project for Alex's Engineering Co. and billed it \$5,480, which is the total price of $6,810 less the advance paypent of $1,330. The conpany debited Unearned Computer Services Revenue for 13 The company sold merchandise with a retall value of $4,460 and a cost of $3,540 to liu Corp., invoice dated 51,330. January 13. 15 The company paid $760 cash for freight charges on the nerchandise purchased on January 7. 16 The company received $4,070 cash from Delta Co. for conputer services provided. 17 The company paid Kansas Corp. for the invoice dated January 7 , net of the discount. 29 The company gave a price reduction (allouance) of $460 to Liu Corp., and credited Liu's accounts receivable for 22 The company received the balance due from Liu Corp., net of the discount and the allowance. that amount. 24 The company returned defective merchandise to Kansas Corp, and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $476. 26 The coepany purchased $9,500 of merchandise froe Kansas Corp. With teres of 1/10, n/30, F0B destination. 26. The company sold merchandise with a $4,$10 cost for $5,870 on credit to KC, Inc., Invoice dated January 26. invoice dated Jamary 26 . 31 The company paid cash to Lyn Addie for 10 days' work at $155 per day. Feb. 1 The company paid $2,685 cash to Hillside 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 credit from merchandise returned on January 24. 5 The company paid $410 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 The company paid a $4,790 cash dividend. 23 The company sold merchandise with a $2,550 cost for $3,400 on credit to Delta Co,, involce dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $155 per day. 27 The company reimbursed Santana Rey $128 cash for business autonobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. 9 The company received the balance due,from Delta Co. for merchandise sold on February 23. 11 The company paid $800 cash for minor repairs to the company's computer. 16 The company received $5,270 cash from Dream, Inc., for cogputing services provided. 19 The company paid the full amount due of $3,880 to Harris office Products, consisting of amounts created on December 15 (of $1,110 ) and March 8 . 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,072 cost for $2,990 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,098 cost for $2,350 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $64 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 available totals $2,005 b. Prepaid Insurance coverage of $636 expired during this 3 -month period. c. Lyn Addie has not been paid for seven days of work at the rate of $155 per day d. Prepaid rent of $2,685 expired during this 3 -month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,210. f. Depreciation on the office equipment for January 1 through March 31 is $270 g. The March 31 amount of merchandise imventory still available totals $664 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31,2020