SPS 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 cach 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 Receivable account. This change allows the company to continue using the existing chart of accounts. Cr. Na. Dr. Account Title Ct. No. Account Title $53,372 0 0 0 3,000 210 Wapes payable 235 Ured computer services revenue 301 S. Rey, Capital 302 S. Roy Withdrawals Computer Services revenue $ 500 1,500 80,360 50 0 0 0 0 2.668 0 0 0 0 0 0 101 Cash 106.1 Alex's Engineering Co. 106 2 W Services 106.3 Easy Leasing 1064 IMC 1065 Liu Corp 106.5 Gomer Co. 106.7 Delta 1058 KC, 106.9 Dream, Inc 119 Merchand selectory 120 Computer supplies 128 Prepaid insurance 131 Prepaident 163 Office egent 164 Accumulated depreciation- Office equipment Computer equipment 168 Accumulated depreciation Computer equipment Accounts payable. 0 0 580 1,665 825 8.000 414 Sales returns and allowances 415 Sales discounts 502 Cost of goods sold 612 Depreciation expense-Office equipment 613 Depreciation expense Computer equipment 623 Wages expense 637 Insurance expense 640 Berit expense 652 Computer supplies expense G55 Advertising expense 675 Meerense 677 Misceous expose 634 Repairs expense-Computer 0 0 0 5 000 20,000 0 0 0 1.250 1.100 0 BH 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 foes. 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 $125 per day, Four of the five days relate to wages payable that were accrued in the prior year. S Santana Rey invested an additional $25,000 cash in the company 7 The company purchased $5.800 of merchandise from Kansas Corp. with terms of 1/10,n/30 FOB shipping point, invoice dated January 7. The company received $2,668 cash from Gomez Co. as full payment on its account. 11 The company completed a five-day project for Alex's Engineering Co. and billed it $5.500. which is the total price of $7,000 less the advance payment of $1.500. The company debited Unearned Computer Services Revenue for $1.500 13 The company sold merchandise with a retail valoe of $5,200 and a cost of $3,560 to Liu Corp. invoice dated January 13. [continued on nest papel 9 Candelaar SPS 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 cach 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 Receivable account. This change allows the company to continue using the existing chart of accounts. Cr. Na. Dr. Account Title Ct. No. Account Title $53,372 0 0 0 3,000 210 Wapes payable 235 Ured computer services revenue 301 S. Rey, Capital 302 S. Roy Withdrawals Computer Services revenue $ 500 1,500 80,360 50 0 0 0 0 2.668 0 0 0 0 0 0 101 Cash 106.1 Alex's Engineering Co. 106 2 W Services 106.3 Easy Leasing 1064 IMC 1065 Liu Corp 106.5 Gomer Co. 106.7 Delta 1058 KC, 106.9 Dream, Inc 119 Merchand selectory 120 Computer supplies 128 Prepaid insurance 131 Prepaident 163 Office egent 164 Accumulated depreciation- Office equipment Computer equipment 168 Accumulated depreciation Computer equipment Accounts payable. 0 0 580 1,665 825 8.000 414 Sales returns and allowances 415 Sales discounts 502 Cost of goods sold 612 Depreciation expense-Office equipment 613 Depreciation expense Computer equipment 623 Wages expense 637 Insurance expense 640 Berit expense 652 Computer supplies expense G55 Advertising expense 675 Meerense 677 Misceous expose 634 Repairs expense-Computer 0 0 0 5 000 20,000 0 0 0 1.250 1.100 0 BH 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 foes. 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 $125 per day, Four of the five days relate to wages payable that were accrued in the prior year. S Santana Rey invested an additional $25,000 cash in the company 7 The company purchased $5.800 of merchandise from Kansas Corp. with terms of 1/10,n/30 FOB shipping point, invoice dated January 7. The company received $2,668 cash from Gomez Co. as full payment on its account. 11 The company completed a five-day project for Alex's Engineering Co. and billed it $5.500. which is the total price of $7,000 less the advance payment of $1.500. The company debited Unearned Computer Services Revenue for $1.500 13 The company sold merchandise with a retail valoe of $5,200 and a cost of $3,560 to Liu Corp. invoice dated January 13. [continued on nest papel 9 Candelaar