SP 4 Serial Probiem Business Solutions (Algo) LO P1, P2, P3, P4 (The following information applies to the questions disprayed beiow.] Santana Rey created Business Solutions on October 1, 2021. 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. 2021. 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 ctlart of accounts. In response to requests from customens, S. Rey wili begin seiling 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 (Numbers. 119, 413, 414,415, and 502 ) are added to its general ledger to accommodiote the company's new merchandising activities, Its transactions for January through Morch follow January 4 The company paid cash to tyn Addie for five days' work at the rate of s2is per day. Four of the five days retate to wages payable that were accrued in the prior year. January 5 Santana fley invested an additional 523,500 cash in the cospany in exchange for more comen stock. January 7 The coopany purchased 17,700 of nerchandise fros kansas Corporation with terms of 1/10, a/30, fob shipping point, invoice dated January 7. Jatuary 9 The coppany received $2,828 cash fron Gomez cospany as fult poynent on its account. January 11 The conpany conpleted a five-day project for Alex's tngineering Conpany and bitled it 55,420 , which is the total price of $6,91. less the advance paysent of 51,490 . The ceapany debited Whearned Conputer Services Pevenue for 51,499 . January 13 The conpany sold merchandise with a retail vatue of $5, eee and a cost of $3,476 to Liu Carperation, involce dated January 13. January 15 The conpany paid \$74e cash for freight charges on the serchandise purchased on January 7. January 15 The company paid $740 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,200 cash from Delta Company for computer services provided. January 17 The company paid Kansas Corporation for the invoice dated January 7 , net of the discount. January 20 The company gave a price reduction (allowance) of $700 to Liu Corporation and credited Liu's accounts receivable for that amount. January 22 The company received the balance due from Liu Corporation, net of the discount and the allowance. January 24 The company returned defective merchandise to Kansas Corporation and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $476. January 26 The company purchased $9,800 of merchandise from Kansas Corporation with terms of 1/16, n/30, FoB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,620 cost for $5,940 on credit to KC, Incorporated, January 31 The conpany paid cash to Lyn Addie for 10 days' work at $245 per day. February 1 The company paid $2,685 cash to Hillside Matl for another three months' rent in advance. February 3 The company paid Kansas Corporation for the batance due, net of the cash discount, less the $476 credit from merchandise returned on January 24 . February 5 The company paid $420 cash to Facebook for an advertisenent to appear on February 5 only. February 11 The company received the balance due from Alex's Engineering Company for fees billed on January February 15 The company paid a $4,780 cash dividend. February 23 The company sold merchandise with a $2,610 cost for $3,460 on credit to Delta Coepany, invoice February 26 'The conpany paid cash to Lyn Addie for eight days' work at $245 per day. February 27 The company reimbursed Santana Rey $352 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,870 of computer supplies from Harris office Products on credit with terms of n/30, FOB destination, invoice dated March 8. March 9 The company received the balance due from Delta Company for merchandise sold on February 23. March 11 The company paid $910 cash for minor repairs to the company's computer. March 16 The company received $5,270 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $3,980 to Harris office Products, consisting of amounts created on December 15 (of $1,110) and March 8. March 24 The company billed Easy Leasing for $9,157 of computing services provided. March 25 The company sold merchandise with a $2,072 cost for $3,060 on credit to Wildcat Services, invoice dated March 25. February 15 The company paid a $4,780 cash dividend. February 23 The company sold merchandise with a $2,610 cost for $3,400 on credit to Detta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $245 per day. February 27 The company reimbursed Santana Rey $352 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,870 of computer supplies from Harris office Products on credit with terms of n/30, FOB destination, invoice dated March 8 . March 9 The company received the balance due from Delta Company for merchandise sold on February 23. March 11 The company paid $910 cash for minor repairs to the company's computer. March 16 The company received $5,270 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $3,980 to Harris office Products, consisting of amounts created on December 15 (of $1,110 ) and March 8 . March 24 The company billed Easy Leasing for $9,157 of cosputing services provided. March 25 The company sold merchandise with a $2,072 cost for $3,000 on credit to Wildcat Services, invoice dated March 25 . March 30 The company sold merchandise with a $1,168 cost for $2,376 on credit to IFM Conpany, invoice dated March 30. March 31 The company reimbursed Santana Rey $256 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." The following additional facts are avallable for preparing adjustments on March 31 prior to financial statement preparation. a. The Marcul 31 amount of computer supplies still available totals $2,125. b. Prepaid Insurance coverage of $618 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $245 per day. d. Prepaid rent of $2,685 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,080. f. Depreciation on the office equipment for January 1 through March 31 is $350. g. The March 31 amount of merchandise inventory still available totals $694. 4 Serial Problem Part 1 (Algo) Required: 1. Prepare journal entries to record each of the January through March transactions. Journal entry worksheet 1 2 78 37 The company completed a five-day project for Alex's Engineering Company 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 Revenue for $1,490. Note: Enter debits before credits