[The following information applies to the questions displayed below.) Santana Rey created Business Solutions on October 1, 2020. 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, 2020. 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 No Account Title Debit Credit 101 Cash $48,422 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 3, 120 106.5 Liu Corp. 106.6 Gomez Co. 2,828 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. Merchandise inventory 126 Computer supplies 730 128 Prepaid insurance 2,016 Prepaid rent 163 Office equipment 3,150 164 Accumulated depreciation office equipment 167 Computer equipment 20,600 e e e 0 119 131 905 $ 260 8,150 $ 260 20,6ee 1,220 1,190 780 1,340 74,721 7,260 163 164 167 168 201 210 236 307 318 319 403 413 414 415 502 612 613 623 637 640 652 655 676 677 684 Office equipment Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue Sales Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer @ 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 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 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 $195 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $23,300 cash in the company in exchange for more common stock. 7 The company purchased $6,eee of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,828 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 $5,370, which is the total price of $6,710 less the advance payment of $1,348. The company debited Unearned Computer Services Revenue for $1,340. 13 The company sold merchandise with a retail value of $4,500 and a cost of $3,488 to Liu Corp., invoice dated January 13. 15 The company paid $67e cash for freight charges on the merchandise purchased on January 7. ws 16 The company received $4,068 cash from Delta Co. for computer services provided. 17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 The company gave a price reduction (allowance) of $5ee to liu Corp. and credited Liu's accounts receivable for that amount. 22 The company received the balance due from Liu Corp., net of the discount and the allowance. 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $476. 26 The company purchased $9,100 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26. 26. The company sold merchandise with a $4,52e cost for $5,870 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days work at $195 per day. Feb. 1 The company paid $2,715 cash to Hillside Mall for another three months' rent in advance. 3. The company paid Kansas Corp. for the balance due, net of the cash discount, less the $475 credit from 60. 31 The company paid cash to Lyn Addie for 18 days' work at $195 per day. Feb. 1 The company paid $2,715 cash to Hillside Mall for another three months' rent in advance. 3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the 5476 credit from merchandise returned on January 24. 5 The company paid $560 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 The company paid a $4,670 cash dividend. 23 The company sold merchandise with a $2,518 cost for $3,410 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days work at $195 per day. 27 The company reimbursed Santana Rey $160 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,85e of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $830 cash for minor repairs to the company's computer. 16 The company received $5,360 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $4,840 to Harris Office Products, consisting of amounts created on December 15 (of $1,190) and March 8. 24 The company billed Easy Leasing for $9,187 of computing services provided. 25 The company sold merchandise with a $2,152 cost for $2,870 on credit to Wildcat Services, invoice dated March 25 30 The company sold merchandise with a $1,058 cost for $2,420 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey 5160 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 3e The company sold merchandise with a $1,058 cost for $2,420 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $160 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 $2,165. b. Prepaid Insurance coverage of $672 expired during this three-month period c. Lyn Addie has not been paid for seven days of work at the rate of $195 per day d. Prepaid rent of $2,715 expired during this three-month period, e. Depreciation on the computer equipment for January 1 through March 31 is $1,220, f. Depreciation on the office equipment for January 1 through March 31 is $260 g. The March 31 amount of merchandise inventory still available totals $534 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 adjuste balances as of December 31, 2020 101: Cash Debit Credit Date Dec 31 Balance 48,422 106.1: Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Dec. 31 0 47447 44 5