SP 7 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4

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.

Number	Account Title	Debit	Credit
101	Cash	$ 48,472
106.1	Alexs Engineering Company	0
106.2	Wildcat Services	0
106.3	Easy Leasing	0
106.4	IFM Company	3,190
106.5	Liu Corporation	0
106.6	Gomez Company	2,778
106.7	Delta Company	0
106.8	KC, Incorporated	0
106.9	Dream, Incorporated	0
119	Merchandise inventory	0
126	Computer supplies	690
128	Prepaid insurance	1,845
131	Prepaid rent	785
163	Office equipment	8,080
164	Accumulated depreciationOffice equipment		$ 250
167	Computer equipment	21,500
168	Accumulated depreciationComputer equipment		1,080
201	Accounts payable		1,210
210	Wages payable		620
236	Unearned computer services revenue		1,380
301	S. Rey, Capital		82,800
302	S. Rey, Withdrawals	0
403	Computer services revenue		0
413	Sales		0
414	Sales returns and allowances	0
415	Sales discounts	0
502	Cost of goods sold	0
612	Depreciation expenseOffice equipment	0
613	Depreciation expenseComputer equipment	0
623	Wages expense	0
637	Insurance expense	0
640	Rent expense	0
652	Computer supplies expense	0
655	Advertising expense	0
676	Mileage expense	0
677	Miscellaneous expenses	0
684	Repairs expenseComputer	0

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 companys 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 $155 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 $23,800 cash in the company.
January 7	The company purchased $7,000 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.
January 9	The company received $2,778 cash from Gomez Company as full payment on its account.
January 11	The company completed a five-day project for Alexs Engineering Company and billed it $5,330, which is the total price of $6,710 less the advance payment of $1,380. The company debited Unearned Computer Services Revenue for $ 1,380.
January 13	The company sold merchandise with a retail value of $4,200 and a cost of $3,480 to Liu Corporation, invoice dated January 13.
January 15	The company paid $750 cash for freight charges on the merchandise purchased on January 7.
January 16	The company received $4,150 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 $800 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 $9,300 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 $4,570 cost for $5,930 on credit to KC, Incorporated, invoice dated January 26.
January 31	The company paid cash to Lyn Addie for 10 days work at $155 per day.
February 1	The company paid $2,335 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 $476 credit from merchandise returned on January 24.
February 5	The company paid $530 cash to Facebook for an advertisement to appear on February 5 only.
February 11	The company received the balance due from Alexs Engineering Company for fees billed on January 11.
February 15	S. Rey withdrew $4,740 cash from the company for personal use.
February 23	The company sold merchandise with a $2,520 cost for $3,270 on credit to Delta Company, invoice dated February 23.
February 26	The company paid cash to Lyn Addie for eight days work at $155 per day.
February 27	The company reimbursed Santana Rey $224 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense."
March 8	The company purchased $2,740 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 $890 cash for minor repairs to the companys computer.
March 16	The company received $5,450 cash from Dream, Incorporated, for computing services provided.
March 19	The company paid the full amount due of $3,950 to Harris Office Products, consisting of amounts created on December 15 (of $1,210) and March 8.
March 24	The company billed Easy Leasing for $9,147 of computing services provided.
March 25	The company sold merchandise with a $2,112 cost for $2,860 on credit to Wildcat Services, invoice dated March 25.
March 30	The company sold merchandise with a $1,198 cost for $2,400 on credit to IFM Company, invoice dated March 30.
March 31	The company reimbursed Santana Rey $192 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense."

Assume that Santana Rey expands Business Solutions system to include special journals. Required: 2. & 3. Enter the Business Solutions transactions for January through March in a sales journal, cash receipts journal, purchases journal, and cash payments journal or general journal. If the transaction does not specify the name of the payee, state not specified in the Payee column of the cash payments journal. The transactions on the following dates should be journalized in the general journal: January 5, 11, 20, and 24 and March 24. Do not record and post the adjusting entries for the end of March.

Complete this question by entering your answers in the tabs below.

• Sales
• Cash Receipts
• Purchases
• Cash Payments
• General Journal

Enter the Business Solutions transactions for January through March in a sales journal.

SALES JOURNAL
Date	Account Debited	Accounts Receivable Debit Sales Credit	Cost of Goods Sold Debit Inventory Credit
March 31	Totals	$0	$0

CASH RECEIPTS JOURNAL
Date	Account Credited	Cash Debit	Sales Discount Debit	Accounts Receivable Credit	Services Revenue Credit	Other Accounts Credit	Cost of Goods Sold Debit Inventory Credit
March 31	Totals	$0	$0	$0	$0	$0	$0