[The following information applies to the questions displayed below.] 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 each 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. Credit No. Account Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 106.5 Liu Corp. 106.6 Gomez Co. 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. 119 Merchandise inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation-office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 413 Sales 414 Sales returns and allowances 415 Sales discounts 502 Cost of goods sold Debit $48,522 0 0 0 3,090 0 2,838 0 0 0 0 690 2,070 865 8,060 $ 360 20,900 1,080 1,110 900 1,410 75, 415 6,760 0 0 0 0 0 0 502 612 613 623 637 640 652 655 676 677 684 Cost of goods sold Depreciation expense- Depreciation expense-cc Wages expense Insurance expense Rent expense Computer supplies exper Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Compute response to requests from custo xtend credit terms of 1/10, n/30, F owever, no cash discount is avail 02) are added to its general ledg ansactions for January through 502 612 613 623 637 640 652 655 676 677 684 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 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 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 $225 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 $7,700 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,838 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 $5,430, which is the total price of $6,840 less the advance payment of $1,410. The company debited Unearned Computer Services Revenue for $1,410. 13 The company sold merchandise with a retail value of $5,000 and a cost of $3,430 to Liu Corp., invoice dated January 13. 15 The company paid $740 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,130 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 $700 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 $9,600 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 $4,490 cost for $5,960 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $225 per day. 1 The company paid $2,595 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 $476 credit from merchandise returned on January 24. Feb. Feb. Mar. January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $225 per day. 1 The company paid $2,595 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 $476 credit from merchandise returned on January 24. 5 The company paid $480 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 $4,790 cash dividend. 23 The company sold merchandise with a $2,510 cost for $3,310 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $225 per day. 27 The company reimbursed Santana Rey $256 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." 8 The company purchased $2,760 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 $800 cash for minor repairs to the company's computer. 16 The company received $5,420 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $3,870 to Harris Office Products, consisting of amounts created on December 15 (of $1,110) and March 8. 24 The company billed Easy Leasing for $9,107 of computing services provided. 25 The company sold merchandise with a $2,042 cost for $2,910 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,158 cost for $2,290 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $224 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 $2,205. b. Prepaid Insurance coverage of $690 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $225 per day. d. Prepaid rent of $2,595 expired during this 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,080. f. Depreciation on the office equipment for January 1 through March 31 is $360. g. The March 31 amount of merchandise inventory still available totals $534. Required: 1. Prepare journal entries to record each of the January through March transactions. View transaction list View journal entry worksheet : .....: No General Journal Debit Credit Date Jan 04 1 900 Wages expense Wages payable 225 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 $2,205. b. Prepaid Insurance coverage of $690 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $225 per day. d. Prepaid rent of $2,595 expired during this 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,080. f. Depreciation on the office equipment for January 1 through March 31 is $360. g. The March 31 amount of merchandise inventory still available totals $534. Post the journal entries in part 1 to the accounts in the company's general ledger. Note: Begin with the ledger's post-closing adjust lances as of December 31, 2019. 3. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adj trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. BUSINESS SOLUTIONS Partial Work Sheet March 31, 2020 Unadjusted Trial Balance Dr. 65,706 0 Adjustments Adjusted Trial Balance Cr. Cr. Dr. Cr. Dr. 0 9,107 5,380 5,000 0 No. Account Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 106.5 Liu Corp. 106.6 Gomez Co. 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. 119 Merchandise inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 0 5,960 0 8,253 3,450 2,070 865 8,060 163 8,060 164 360 167 20,540 168 201 210 236 2,160 27,170 0 0 307 98,715 318 6,760 4,790 319 403 Office equipment Accumulated depreciation Office equipment Computer equipment Accumulated depreciationComputer 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 25,497 19,470 413 414 700 43 13,628 415 502 612 613 1,080 380 623 4,950 637 690 640 865 652 4,005 865 4,005 640 652 655 676 677 480 Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Totals 480 684 800 169,647 177,767 0 Income Statement For Three Months Ended March 31, 2020 Revenues 0 Total revenues Expenses Total expenses 0 $ 0 5. Prepare a statement of retained earnings (from the adjusted BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended March 31, 2020 Retained earnings, Dec. 31, 2019 0 Retained earnings, March 31, 2020 $ 0