Serial Problem The following information applied to the indisplayed beb! Santana Rey created Business Solutions on October 1, 2018. The company has been costul and to ist of customers has grown To accommodate the grow the accounting system is modified to set up separate accounts for each come. The tong chart of accounts includes the account number and for each count and balance of December 31, 2019. Santana Rey decided to asd a fourth it with a como 100cc number that had been used for the single Accounts Recome the change the company to continue using the casting characte Chart of Account No Account 101 Cash 106 Alex's Engineering Co. 106 Wildcat Services 10. Lasing 106.4FM Co 2.000 106. Corp 105.6ome Co 106 70etan . 100 Inc . 108.5Oream, Inc 179 Merchandise inventory 126 Computer supplies 8.000 5400 1.100 300 1.500 72.000 7.380 128 Prepaid insurance 131 Prepaid rent 163 Office 164 Accumulated con-offie en 167 Computer 168 Accumulated depreciation-Computer equement 201 Accounts payable 20 Wages payable 236 Uneamed computer vies revenue 307 Common stock 318 Retained Gaming 319 Dividends 403 Computer Services revenue 413 Sales 414 Sales ums and lowance 415 Sales discounts 302 Cost of goods sold 612 Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rentgen 662 Computer supplies expense ess Advertising expense 676 Mileageense 677 Misce penses 0 640 Rent expense 652 Computer supplies expense 685 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense--Computer 0 0 In response to requests from customers. S. Rey will beginselling computer software. The company will extend credit terms of 1/10, 1/30, FOB shipping point to all customers who purchase this merchandise. However, no cash discount is available on consulting fees Additional accounts (Nos 119,413,414,455 and 502) are added to its general ledger so accommodate the company's new merchandising activities. Also, Business Solution does not use reversing entries and therefore, all revenue and expense accounts have zero beginning balances as of January 1, 2020 You are to record business transactions for January through March using the Information below Jan 4 The company paid cash to Lyn Addie for five days' work at the rate of $125 per day Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $25.000 cash in the company in exchange for more common stock. 7 The company purchased 59,800 of merchandise from Kansas Comp with terms of 1/10, w30. FOB shipping point, invoice dated January 7. 9 The company received $2.668 cash from Gomes Co. as full payment on to account 11 The company completed a five-day project for Alex's Engineering Co. and bited it $5.500, which is the total price of $7.000 less the advance payment of $1,500 13 The company old merchandise with a retail value of 55.200 and a cost of $3.SOOL Corp. invoice dated January 13 15 The company paid 5000 cash for freight charges on the merchandise purchased on January 7 16 The company received 54.000 cash from Delta Ce for computer services provided 17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount 20 Liu Corp. returned 5500 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 for the retumed merchandise 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchase. The defective merchandise invoice cont net of the discount was $496. 26 The company purchased $7.000 af marchandise from Kansas Corp, with terms of 40, 30. FOB destination, Invoice dated January 26 26 The company sold merchandise with a 54.640 cost for 55.000 on credit to KC, Inc. invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days work at $125 per day Feb 1 The company paid 52.475 cash to Hilside Mas for another three months rent in advance The company paid Kansas Corp. for the balance due, met of the cash discountless the $196 amount in the credit memorandum. 5 The company paid $1200 cash to the local newspaper for an advertising insettin 11 The company received the balance due from Alex's Engineering Co, Tortos.biled on January 11 15 The company paid $5000 cash individende 23 The company sold merchandise with a 52.660 cost for 53.720 on credit to Delta Co. invoice dated February 23 26 The company paid cash to Lyn Addie for nine day work at 5125 per day 27 The company reimbursed Santana Rey for business moble mileage (1600 miles at 50.32 per mile) Mar. The company purchased 53.720 cl computer supplies from Haris Office Products on The company received the balance due from Deta Co. for merchandise hold on February 23 11 The company paid $610 cash for minor repairs to the company computer 16 The company received $5.200 cash from Dream, Inc. for computing services provided 19 The company paid the full amount due to Harris Office Products consisting of amounts Created on December 15 of 51,100) and March 24 The company biled Easy Leasing for 59.047 of computing services provided 25 The company sold merchandise with a $2.002 cost for $2.800 on credit to Wildcat Services, Invoice dated March 25 The company told merchandise with a $1,De cost for $2.220 on credit to FM Company, invoice dated March 30 31 The company reimbursed Santana Roy for business tomobile mileage (400 mies at 50.32 per mile) The following additional facts are valable for preparing on the March 31 worksheet prior to financial statement preparation a The March 31 amount of computer supplies stable als 5850. 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 montrent expense is $925 .. Depreciation on the computer equipment for January rough March 31 is $2.250 1. Depreciation on the office equipment for January 1hrough March 31 5800 The March 31 amount of merchandise inventory Silable to 5554 The following additional facts are available for preparing adjustments on the March 31 worksheet prior to financial statement preparation: a. The March 31 amount of computer supplies still available totals $850. 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 $925. e. Depreciation on the computer equipment for January 1 through March 31 is $2,250. 1. Depreciation on the office equipment for January 1 through March 31 is $800. 9. The March 31 amount of merchandise inventory still available totals $554. Required: 1. Prepare journal entries to record each of the January through March transactions, SKIP A LINE BETWEEN EACH TRANSACTION 2. Post the journal entries in part 1 to the accounts in the company's general ledger. (Note: Begin with the ledger's post-closing adjusted balances as of December 31, 2019.) DO NOT WRITE ANYTHING IN THE EXPLANATION COLUMN 3. Complete the partial work sheet template consisting of the first six columns that includes the unadjusted trial balance. You will only write in the March 31 adjustment amounts for (a) through (9) to arrive at the adjusted trial balance numbers provided on the worksheet. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger 4. Prepare an income statement from the adjusted trial balance in part 3) for the three months ended March 31, 2020. Use a single-step format, List all expenses without differentiating between selling expenses and general and administrative expenses. 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31, 2020 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2020 Chapter 4 Serial Problem, SP4 Name: Part 1 Business Solutions Journal Entries GENERAL JOURNAL Date Account Titles and Explanation P.R. Debit Credit Name: Chapter 4 Serial Problem, SP4 Part 1 Business Solutions Journal Entries (Continued) Date Account Titles and Explanation P.R. Debit Credit Name: Chapter 4 Serial Problem, SP4 Part 1 Business Solutions Journal Entries (Continued) Date Account Titles and Explanation P.R. Debit Credit Name: Chapter 4 Serial Problem, SP4 Part 1 Business Solutions Journal Entries (Continued) Date Account Titles and Explanation P.R. Debit Credit Chapter 4 Part 2 Serial Problem, Name: Business Solutions (Continued) GENERAL LEDGER Cash Explanation ACCOUNT NO. 101 CREDIT BALANCE P.R. DEBIT Date 2019 Dec 31 Balance 48,372 Chapter 4 Serial Problem Name: Part 2 Business Solutions (Continued) Accounts Receivable-Alex's Engineering Co. Date Explanation P.R. DEBIT 2019 Dec 31 Balance ACCOUNT NO. 106.1 CREDIT BALANCE 0.00 Accounts Receivable-Wildcat Services Date Explanation P.R. DEBIT 2019 Dec 31 Balance ACCOUNT NO. 106.2 CREDIT BALANCE 0.00 Accounts Receivable-Easy Leasing Date Explanation P.R. DEBIT 2019 Dec 31 Balance ACCOUNT NO. 106.3 CREDIT BALANCE 0.00 Accounts Receivable-IFM Explanation P.R. ACCOUNT NO. 106.4 CREDIT BALANCE DEBIT Date 2019 Dec 31 Balance 3,000.00 Chapter 4 Part 2 Name: Serial Problem Business Solutions (Continued) Accounts Receivable-Liu Corporation Date Explanation P.R. DEBIT 2019 Dec 31 Balance ACCOUNT NO. 106.5 CREDIT BALANCE 0.00 Accounts Receivable-Gomez Co.. Date Explanation P.R. DEBIT 2019 Dec 31 Balance ACCOUNT NO. 106.6 CREDIT BALANCE 2.668.00 Accounts Receivable-Delta Co. Explanation P.R. DEBIT ACCOUNT NO. 106.7 CREDIT BALANCE Date 2019 Dec 31 Balance 0.00 Accounts Receivable-KC, Inc. Explanation P.R. DEBIT ACCOUNT NO. 106.8 CREDIT BALANCE Date 2019 Dec 31 Balance 0.00 Accounts Receivable-Dream, Inc. Date Explanation P.R. DEBIT 2019 Dec 31 Balance ACCOUNT NO. 106.9 CREDIT BALANCE 0.00 Name: Chapter 4 Serial Problem, SP Part 2 Business Solutions (Continued) Merchandise Inventory Date Explanation P.R. 2019 Dec 31 Balance ACCOUNT NO. 119 CREDIT BALANCE DEBIT 0.00 Computer Supplies Explanation P.R. ACCOUNT NO. 126 CREDIT BALANCE DEBIT Date 2019 Dec 31 Balance 580.00 Prepaid Insurance Explanation P.R. ACCOUNT NO. 128 CREDIT BALANCE DEBIT Date 2019 Dec 31 Balance 1,665.00 Chapter 4 Part 2 Name: Serial Problem Business Solutions (Continued) Prepaid Rent Explanation P.R. DEBIT Date 2019 Dec 31 Balance ACCOUNT NO. 131 CREDIT BALANCE 825.00 Office Equipment Explanation P.R. ACCOUNT NO. 163 CREDIT BALANCE DEBIT Date 2019 Dec 31 Balance 8,000.00 Accumulated Depreciation - Office Equipment Date Explanation P.R. DEBIT 2019 Dec 31 Balance ACCOUNT NO. 164 CREDIT BALANCE 400.00 Computer Equipment Date Explanation P.R. 2019 Dec 31 Balance ACCOUNT NO. 167 CREDIT BALANCE DEBIT 20.000.00 Accumulated Depreciation--Computer Equipment ACCOUNT NO. 168 Date Explanation P.R. DEBIT CREDIT BALANCE 2019 Dec 31 Balance 1.250.00 Chapter 4 Serial Problem Name: Part 2 Business Solutions (Continued) Accounts Payable Date Explanation P.R. DEBIT 12019 Dec 31 Balance ACCOUNT NO. 201 CREDIT BALANCE 1,100.00 Wages Payable Explanation P.R. ACCOUNT NO. 210 CREDIT BALANCE DEBIT Date 2019 Dec 31 Balance 500.00 Unearned Computer Servies Revenue Date Explanation P.R. DEBIT 2019 Dec 31 Balance ACCOUNT NO. 236 CREDIT BALANCE 1,500.00 Common Stock Explanation ACCOUNT NO. 307 CREDIT BALANCE P.R. DEBIT Date 2019 Dec 31 Balance 73.000.00 Retained Earnings Explanation P.R. DEBIT ACCOUNT NO. 318 CREDIT BALANCE Date 2019 Dec 31 Balance 7,360.00 Chapter 4 Part 2 Name: Serial Problem Business Solutions (Continued) Dividends Explanation ACCOUNT NO. 319 CREDIT BALANCE Date P.R. DEBIT Computer Services Revenue Explanation P.R. ACCOUNT NO. 403 CREDIT BALANCE Date DEBIT Sales Explanation ACCOUNT NO. 413 CREDIT BALANCE Date P.R. DEBIT Sales Returns & Allowances Explanation P.R. ACCOUNT NO. 414 CREDIT BALANCE Date DEBIT Name: Chapter 4 Part 2 Serial Problem Business Solutions (Continued) Sales Discounts Explanation P.R. ACCOUNT NO. 415 CREDIT BALANCE Date DEBIT Cost of Goods Sold Explanation P.R. ACCOUNT NO. 502 CREDIT BALANCE Date DEBIT Depreciation Expense--Office Equipment Explanation P.R. DEBIT ACCOUNT NO. 612 CREDIT BALANCE Date Depreciation Expense--Computer Equipment Explanation P.R. DEBIT ACCOUNT NO. 613 CREDIT BALANCE Date Wages Expense Explanation P.R. ACCOUNT NO. 623 CREDIT BALANCE Date DEBIT Chapter 4 Part 2 Name: Serial Problem Business Solutions (Continued) Insurance Expense Explanation P.R Date ACCOUNT NO. 637 CREDIT BALANCE DEBIT Rent Expense Explanation ACCOUNT NO. 640 CREDIT BALANCE Date P.R. DEBIT Computer Supplies Expense Explanation P.R. DEBIT ACCOUNT NO. 652 CREDIT BALANCE Date Advertising Expense Explanation P.R. ACCOUNT NO. 655 CREDIT BALANCE Date DEBIT Mileage Expense Explanation P.R. ACCOUNT NO. 676 CREDIT BALANCE Date DEBIT Miscellaneous Expense Explanation P.R. ACCOUNT NO. 677 CREDIT BALANCE Date DEBIT Repairs Expense - Computer Explanation P.R. ACCOUNT NO. 684 CREDIT BALANCE Date DEBIT CHAPTER 4 SERIAL PROBLEM NAME PART 3 BUSINESS SOLUTIONS (CONTINUED) BUSINESS SOLUTIONS Partial Work Sheet March 31, 2020 UNABUUSTED Acct. TRIAL BALANCE ADJUSTMENTS No. ACCOUNT TITLES OR TORE CRE ADJUSTED TRIAL BALANCE DR. CR Created by Shella Porter 2007 Chapter 4 Part 4 Name: Serial Problem 4 Business Solutions (Continued) BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Total Expenses Net Income Part 5 SUCCESS SYSTEMS Statement of Retained Earnings For Three Months Ended March 31, 2015 Created by Sheila Porter 2007 Name: Chapter 4 Part 6 Serial Problem Business Solutions (Continued) BUSINESS SOLUTIONS Balance Sheet March 31, 2020 Created by Sheila Porter 2007 Serial Problem The following information applied to the indisplayed beb! Santana Rey created Business Solutions on October 1, 2018. The company has been costul and to ist of customers has grown To accommodate the grow the accounting system is modified to set up separate accounts for each come. The tong chart of accounts includes the account number and for each count and balance of December 31, 2019. Santana Rey decided to asd a fourth it with a como 100cc number that had been used for the single Accounts Recome the change the company to continue using the casting characte Chart of Account No Account 101 Cash 106 Alex's Engineering Co. 106 Wildcat Services 10. Lasing 106.4FM Co 2.000 106. Corp 105.6ome Co 106 70etan . 100 Inc . 108.5Oream, Inc 179 Merchandise inventory 126 Computer supplies 8.000 5400 1.100 300 1.500 72.000 7.380 128 Prepaid insurance 131 Prepaid rent 163 Office 164 Accumulated con-offie en 167 Computer 168 Accumulated depreciation-Computer equement 201 Accounts payable 20 Wages payable 236 Uneamed computer vies revenue 307 Common stock 318 Retained Gaming 319 Dividends 403 Computer Services revenue 413 Sales 414 Sales ums and lowance 415 Sales discounts 302 Cost of goods sold 612 Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rentgen 662 Computer supplies expense ess Advertising expense 676 Mileageense 677 Misce penses