SP 4 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] 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 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 available on consulting fees. Additional accounts (Numbers. 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. January 4 The company paid cash to Lyn Addie for five days' work at the rate of $135 per day. Four of the five days relate to wages payable that were accrued in the prior year. January 5 Santana Rey invested an additional $24,100 cash in the company in exchange for more common stock. January 7 The company purchased $7,30 of merchandise from Kansas Corporation with terms of 1/10, n/3, FOB shipping point, invoice dated January 7. January 9 The company received $2,728 cash from Gomez Company as full payment on its account. January 11 The company completed a five-day project for Alex's Engineering Company and billed it \$5, 310, which is the total price of $6,750 less the advance payment of $1,440. The company debited Unearned computer Services Revenue for $1,440. January 13 The company sold merchandise with a retail value of $4,100 and a cost of $3,370 to Liu Corporation, invoice dated January 13. January 15 The company paid $630 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,07 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 $600 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 $486. January 26 The company purchased. $9,400 of merchandise from Kansas corporation with terms of 1/10, n/30, Fne restination inunine dater lanuars be invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days' work at $135 per day. February 1 The company paid \$2,685 cash to Hillside Mall for another three months' rent in advance. February 3 The company paid Kansas Corporation for the balance due, net of the cash discount, less the $486 credit from merchandise returned on January 24. February 5 The company paid $500 cash to Facebook for an advertisement to appear on February 5 only. February 11 The company received the balance due from Alex's Engineering Company for fees billed on January 11. February 15 The company paid a $4,720 cash dividend. February 23 The company sold merchandise with a $2,550 cost for $3,290 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at \$135 per day. February 27 The company reimbursed Santana Rey $160 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased 52,830 of conpucer 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 $5,310 cash fron Dream, Incorporated, for computing services provided. March 19 . The company paid the fu11 amount due of $4,07 to Harris office Products, consisting of amounts created on December 15 (of $1,240 ) and March 8. March 24 The company billed Easy Leasing for $9,077 of computing services provided. March 25 The company sold merchandise with a $2,072 cost for $2,850 on credit to wildcat Services, invoice dated March 25. March 30 The company sold merchandise with a $1,158 cost for $2,250 on credit to IFM company, invoice dated March 30. March 31 The company reambursed Santana Rey $128 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." a. The March 31 amount of computer supplies still available totals $2,135. b. Prepaid Insurance coverage of $708 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $135 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 $1,130. f. Depreciation on the office equipment for January 1 through March 31 is $370. g. The March 31 amount of merchandise inventory still available totals $574. SP 4 Serial Problem Part 2 (Algo) 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, 2021. alances as of December 31, 2021. \begin{tabular}{|l|c|c|c|} \hline \multicolumn{2}{|c|}{106.2: Accounts Receivable-Wildcat Services } \\ \hline Date & Debit & Credit & Balance \\ \hline December 31 & Credit \\ \hline Date & Debit & Balance \\ \hline 106.4: Accounts Receivable-IFM Company & Balance \\ \hline December 31 & Credit \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ 106.3: Accounts Receivable-Easy Leasing } \\ \hline Date & Debit & Credit & Balance \\ \hline December 31 & & & \\ \hline & & & \\ \hline Date & Credit & Balance \\ \hline December 31 & Dccounts Receivable-Liu Corporation & \\ \hline Date & Debit & Balance \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{3}{|c|}{ 106.8: Accounts Receivable KC, Incorporated } \\ \hline Date & Debit & Credit & Balance \\ \hline ember 31 & & & \\ \hline \end{tabular} 106.9: Accounts Receivable-Dream, Incorporated \begin{tabular}{|c|c|c|c|} \hline Date & Debit & Credit & Balance \\ \hline December 31 & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} 119: Merchandise Inventory 126: Computer Supplies Date Debit Credit Balance 0 December 31 BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended March 31, 2022 Retained earnings, December 31,2021 Retained earnings, March 31, 2022 $ BUSINESS SOLUTIONS Balance Sheet March 31, 2022 Assets Current assets Plant assets Current liabilities Equity Total equity Total liabilities and equity January 4 The company paid cash to Lyn Addie for five days' work at the rate of $135 per day. Four of the five days relate to wages payable that were accrued in the prior year. January 5 Santana Rey invested an additional $24,100 cash in the company in exchange for more common stock. January 7 The company purchased $7,30 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. January 9 The company received $2,728 cash from Gomez Company as full payment on its account. January 11 The company completed a five-day project for Alex's Engineering company and billed it \$5, 310 , which is the total price of $6,750 less the advance payment of $1,440. The company debited Unearned Computer Services Revenue for $1,440. January 13 The company sold merchandise with a retail value of $4,100 and a cost of $3,370 to Liu Corporation, invoice dated January 13. January 15 The company paid $630 cash for freight charges on the merchandise purchased on January 7 . January 16 The company received $4,070 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 $600 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 $486. January 26 The company purchased $9,400 of merchandise from Kansas corporation with terms of 1/10, n/30, FOB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,490 cost for 55,820 on credit to KC, Incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days' work at $135 per day. Februarv 1 The combanv Daid $2.685 cash to Hillside Mall for another three months' rent in advance. allowance. anuary 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 $486. anuary 26 The company purchased $9,40 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB destination, invoice dated January 26. anuary 26 The company sold merchandise with a $4,490 cost for $5,820 on credit to Kc, Incorporated, invoice dated January 26. anuary 31 The company paid cash to Lyn Addie for 10 days' work at $135 per day. ebruary 1 The company paid $2,685 cash to Hillside Mall for another three months' rent in advance. ebruary 3 The company paid Kansas Corporation for the balance due, net of the cash discount, less the $486 credit from merchandise returned on January 24. ebruary 5 The company paid $500 cash to Facebook for an advertisement to appear on February 5 only. bruary 11 The company received the balance due from Alex's Engineering Company for fees billed on January 11. abruary 15 The company paid a $4,720 cash dividend. bruary 23 The company sold merchandise with a $2,550 cost for $3,290 on credit to Delta company, invoice dated February 23. abruary 26 The company paid cash to Lyn Addie for eight days' work at $135 per day. ebruary 27 The company reimbursed Santana Rey $160 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,830 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 $5,310 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $4,070 to Harris office Products, consisting of amounts created on December 15 (of $1,240 ) and March 8. March 24 The company billed Easy Leasing for $9,077 of computing services provided. March 25 The company sold merchandise with a $2,072 cost for $2,850 on credit to wildcat Services, inwaim datarl Marah of March 16 The compan received $5,310 cash from D'ream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $4,070 to Harris Office Products, consisting of amounts created on December 15 (of $1,24 ) and March 8. March 24 The company billed Easy Leasing for $9,077 of computing services provided. March 25 The company sold merchandise with a $2,072 cost for $2,850 on credit to Wildcat Services, invoice dated March 25. March 30 The company sold merchandise with a $1,158 cost for $2,250 on credit to IFM Company, invoice dated March 30. March 31 The company reimbursed Santana Rey $128 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 $2,135. b. Prepaid Insurance coverage of $708 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $135 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 $1,130. f. Depreciation on the office equipment for January 1 through March 31 is $370. g. The March 31 amount of merchandise inventory still available totals $574. Serial Problem Part 2 (Algo)