The following information applies to the questions displayed below) Santana Rey created Business Solutions on October , 2017. The company has been successful, and ts 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, 2017 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 Credit Debit $48.402 O 0 0 3.070 No 101 106.1 1062 106.3 106.4 106.5 106.6 106.7 106.8 106.9 119 126 12B 131 163 164 167 168 201 210 236 301 302 403 413 2,688 0 0 0 0 660 1.935 855 8.040 3 300 21,500 090 Account Title Cash Alex's Engineering Co. Wildcat Services Easy Leasing IFM CO Liu Corp Gomez Co Delta Co KC, Inc Dream, Inc Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-fice equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Uneamed computer services revenue S. Rey, Capital S Rey, Withdrawals Computer services revenue Sales Sales returns and allowances Sales oscounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expenso Mileage expense Miscellaneous expenses Repair expense-Computer U10 540 1400 82,710 D 0 0 415 502 612 633 623 537 640 652 655 676 677 o o o o o o o o o o o o o In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 110, 1/30, FOB shipping point to all customers who purchase this merchandise. However, no cash discount is available on consulting fees. Additional accounts Nos. 115, 40, 414, 415, and 50%) are added to its general ledger to accommodate the company's new merchandising activities. Also, Business Solutions does not use reversing entries and therefore, all revenue and expense accounts have zero beginning balances as of January 1, 2018. Its transactions for January through March follow Jan 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 5 Santana Rey invested an additional $24,800 cash in the company 7 The company purchased $7,500 of merchandise from Kansas Corp with terms of 110.30, FOB shipping point, invoice dated January 9 The company received $2,688 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 55,400, which is the total price of $6,800 less the advance payment of 1400 13 The company sold merchandise with a retail value of $4.500 and a cost of $3.390 to Liu Corp. invoice dated January 13 15 The company paid $610 cash for freight charges on the merchandise purchased on January 7 16 The company received $4,170 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 Liu Corp. returned $700 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a 5290 cost is discarded. The policy of Business Solutions is to leave the cost of defective products in cost of goods sold) 22 The company received the balance due from Liu Corp.net of both the discount and the credit for the returned merchandise 24 The company returned defective merchandise to Kansas Coip and accepted a credit against future purchases. The defective merchandise invoice cost, net of discount, was $486 26 The company purchased 59.200 of merchandise from Kansas Corp with terms of 10, 1/30. FOB destination, invoice dated January 25 26 The company sold merchandise with a $4,590 cost for $5.920 on credit to KC, Inc, Invoice dated January 26 31 The company paid cash to Lyn Addie for 10 days work at $135 per day Feb 1 The company pold $2,565 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 $486 amount in the credit memorandum 5 The company paid $490 cash to the local newspaper for an advertising insert in today's paper 11 The company received the balance due from Alex's Engineering Co for fees billed on January 11 15 Santana Rey withdrew $4.720 cash from the company for personal use 23 The company sold merchandise with a 52.510 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 $135 per day 27 The company reimbursed Santana Rey for business automobile mileage (500 miles at $0 32 per mile) Mar 8 The company purchased $2,890 of computer supplies from Hams Office Products on credit, invoice dated March 8 Single Print View&singleQuestionNo.2.&postSubmission View=13252714028443771.13252714028443775&wid=132... 9 The company received the balance due from Delta Co. for merchandise sold on February 23 11 The company paid $850 cash for minor repairs to the company's computer. 16 The company received $5,340 cash from Dream, Inc., for computing services provided 19 The company pold the full amount due to Harris Office Products, consisting of amounts created on December 15 (or $110 and March 24 The company billed Easy Leasing for $9.057 of computing services provided 25 The company sold merchandise with a $2,082 cost for $2,910 on credit to Wildcat Services, invoice dated March 25 30 The company sold merchandise with a 51118 cost for $2.270 on credit to IFM Company. Invoice dated March 30 31 The company reimbursed Santana Rey for business automobile mileage (200 miles of $0.32 per mile) 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 $2,045, b. Three more months have expired since the company purchased its annual Insurance policy at a $2.580 cost for 12 months of coverage. c Lyn Addie has not been paid for seven days of work at the rate of $135 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $855. e. Depreciation on the computer equipment for January 1 through March 31 is $1,090. 1. Depreciation on the office equipment for January 1 through March 31 is $300. g. The March 31 amount of merchandise Inventory still available totals $514. 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 bar 31, 2017.) (Record the transactions in the order presented. Do not skip rows) Date Dec. 31 101 Cash Debit Credit Balance 106.1 Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Dec. 31 0 106.2 Accounts Receivable-Wildcat Services Date Debit Credit Balance Dec 31 106.3 Accounts Receivable-Easy Leasing Date Debit Credit Balance Dec 31 0 106.4 Accounts Receivable-IFM Co. Debit Credit Balance Date Dec 31 106.5 Accounts Receivable-Liu Corporation Date Debit Credit Balance Dec 31 0 10. Ac Receivable- Go. Dec 1 Balance Daca C Date Dec 106. Acco Credi Balance Oame D 11 Merchandi Date Dec Debut 12 Campus C Balance Prepaid sunce Det CH Cate Dec 31 Du 11 131 paid Rent Creo Balance 153 Om Ewent De Credi Deprimiquiment De Cada Balance Date Dec 31 De MET Computer Equi De Crede Dale Dec 31 Credit Balance Dec 301 Accounts Payable Det C 250 W Date Cred Balance Dee 301 Sex Capital Daten Crot 336 Used Computer Services en Date Debat since Dec 31 302 S. R. Withdrawal a comptar Services Reven nut hoc singlePrefiringles Vines 200250771.13252714025 Assignment Print View VI 413 Sales Debit Credit 414 Sales Returns and Allowances Debit Credit Date Balance Date Balance 415 Sales Discounts Debit Credit 502 Cost of Goods Sold Debit Credit Date Balance Date Balance Balance 612 Depreciation Expense-Office Equipment Date Debit Credit Balance 613 Depreciation Expense Computer Equipment Date Debit Credit Balance 623 Wages Expense Debit Credit 437 Insurance Expense Debit Credit Date Balance Date Balance 440 Rent Expense Debit Credit 662 Computer Supplies Expense Debit Credit Date Balance Date Balance 656 Advertising Expense Debit Credit 676 Mileage Expense Debit Credit Date Balance Date Balance 677 Miscellaneous Expenses Credit 614 Repair Expense-Computer Debit Credit Balance Date Debit Dato Balance The following information applies to the questions displayed below) Santana Rey created Business Solutions on October , 2017. The company has been successful, and ts 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, 2017 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 Credit Debit $48.402 O 0 0 3.070 No 101 106.1 1062 106.3 106.4 106.5 106.6 106.7 106.8 106.9 119 126 12B 131 163 164 167 168 201 210 236 301 302 403 413 2,688 0 0 0 0 660 1.935 855 8.040 3 300 21,500 090 Account Title Cash Alex's Engineering Co. Wildcat Services Easy Leasing IFM CO Liu Corp Gomez Co Delta Co KC, Inc Dream, Inc Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-fice equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Uneamed computer services revenue S. Rey, Capital S Rey, Withdrawals Computer services revenue Sales Sales returns and allowances Sales oscounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expenso Mileage expense Miscellaneous expenses Repair expense-Computer U10 540 1400 82,710 D 0 0 415 502 612 633 623 537 640 652 655 676 677 o o o o o o o o o o o o o In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 110, 1/30, FOB shipping point to all customers who purchase this merchandise. However, no cash discount is available on consulting fees. Additional accounts Nos. 115, 40, 414, 415, and 50%) are added to its general ledger to accommodate the company's new merchandising activities. Also, Business Solutions does not use reversing entries and therefore, all revenue and expense accounts have zero beginning balances as of January 1, 2018. Its transactions for January through March follow Jan 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 5 Santana Rey invested an additional $24,800 cash in the company 7 The company purchased $7,500 of merchandise from Kansas Corp with terms of 110.30, FOB shipping point, invoice dated January 9 The company received $2,688 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 55,400, which is the total price of $6,800 less the advance payment of 1400 13 The company sold merchandise with a retail value of $4.500 and a cost of $3.390 to Liu Corp. invoice dated January 13 15 The company paid $610 cash for freight charges on the merchandise purchased on January 7 16 The company received $4,170 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 Liu Corp. returned $700 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a 5290 cost is discarded. The policy of Business Solutions is to leave the cost of defective products in cost of goods sold) 22 The company received the balance due from Liu Corp.net of both the discount and the credit for the returned merchandise 24 The company returned defective merchandise to Kansas Coip and accepted a credit against future purchases. The defective merchandise invoice cost, net of discount, was $486 26 The company purchased 59.200 of merchandise from Kansas Corp with terms of 10, 1/30. FOB destination, invoice dated January 25 26 The company sold merchandise with a $4,590 cost for $5.920 on credit to KC, Inc, Invoice dated January 26 31 The company paid cash to Lyn Addie for 10 days work at $135 per day Feb 1 The company pold $2,565 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 $486 amount in the credit memorandum 5 The company paid $490 cash to the local newspaper for an advertising insert in today's paper 11 The company received the balance due from Alex's Engineering Co for fees billed on January 11 15 Santana Rey withdrew $4.720 cash from the company for personal use 23 The company sold merchandise with a 52.510 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 $135 per day 27 The company reimbursed Santana Rey for business automobile mileage (500 miles at $0 32 per mile) Mar 8 The company purchased $2,890 of computer supplies from Hams Office Products on credit, invoice dated March 8 Single Print View&singleQuestionNo.2.&postSubmission View=13252714028443771.13252714028443775&wid=132... 9 The company received the balance due from Delta Co. for merchandise sold on February 23 11 The company paid $850 cash for minor repairs to the company's computer. 16 The company received $5,340 cash from Dream, Inc., for computing services provided 19 The company pold the full amount due to Harris Office Products, consisting of amounts created on December 15 (or $110 and March 24 The company billed Easy Leasing for $9.057 of computing services provided 25 The company sold merchandise with a $2,082 cost for $2,910 on credit to Wildcat Services, invoice dated March 25 30 The company sold merchandise with a 51118 cost for $2.270 on credit to IFM Company. Invoice dated March 30 31 The company reimbursed Santana Rey for business automobile mileage (200 miles of $0.32 per mile) 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 $2,045, b. Three more months have expired since the company purchased its annual Insurance policy at a $2.580 cost for 12 months of coverage. c Lyn Addie has not been paid for seven days of work at the rate of $135 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $855. e. Depreciation on the computer equipment for January 1 through March 31 is $1,090. 1. Depreciation on the office equipment for January 1 through March 31 is $300. g. The March 31 amount of merchandise Inventory still available totals $514. 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 bar 31, 2017.) (Record the transactions in the order presented. Do not skip rows) Date Dec. 31 101 Cash Debit Credit Balance 106.1 Accounts Receivable-Alex's Engineering Co. Date Debit Credit Balance Dec. 31 0 106.2 Accounts Receivable-Wildcat Services Date Debit Credit Balance Dec 31 106.3 Accounts Receivable-Easy Leasing Date Debit Credit Balance Dec 31 0 106.4 Accounts Receivable-IFM Co. Debit Credit Balance Date Dec 31 106.5 Accounts Receivable-Liu Corporation Date Debit Credit Balance Dec 31 0 10. Ac Receivable- Go. Dec 1 Balance Daca C Date Dec 106. Acco Credi Balance Oame D 11 Merchandi Date Dec Debut 12 Campus C Balance Prepaid sunce Det CH Cate Dec 31 Du 11 131 paid Rent Creo Balance 153 Om Ewent De Credi Deprimiquiment De Cada Balance Date Dec 31 De MET Computer Equi De Crede Dale Dec 31 Credit Balance Dec 301 Accounts Payable Det C 250 W Date Cred Balance Dee 301 Sex Capital Daten Crot 336 Used Computer Services en Date Debat since Dec 31 302 S. R. Withdrawal a comptar Services Reven nut hoc singlePrefiringles Vines 200250771.13252714025 Assignment Print View VI 413 Sales Debit Credit 414 Sales Returns and Allowances Debit Credit Date Balance Date Balance 415 Sales Discounts Debit Credit 502 Cost of Goods Sold Debit Credit Date Balance Date Balance Balance 612 Depreciation Expense-Office Equipment Date Debit Credit Balance 613 Depreciation Expense Computer Equipment Date Debit Credit Balance 623 Wages Expense Debit Credit 437 Insurance Expense Debit Credit Date Balance Date Balance 440 Rent Expense Debit Credit 662 Computer Supplies Expense Debit Credit Date Balance Date Balance 656 Advertising Expense Debit Credit 676 Mileage Expense Debit Credit Date Balance Date Balance 677 Miscellaneous Expenses Credit 614 Repair Expense-Computer Debit Credit Balance Date Debit Dato Balance