(The following information applies to the questions displayed below.) 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 $ 48,532 106.1 Alex's Engineering Company 0 106.2 Wildcat Services 0 106.3 Easy Leasing 0 106.4 IFM Company 3,180 106.5 Liu Corporation 0 106.6 Gomez Company 2,718 106.7 Delta Company 0 106.8 KC, Incorporated 0 106.9 Dream, Incorporated 0 119 Merchandise inventory 0 126 Computer supplies 650 128 Prepaid insurance 2,016 131 Prepaid rent 875 163 office equipment 8,130 164 Accumulated depreciation-office equipment $ 320 167 Computer equipment 21,200 168 Accumulated depreciation Computer equipment 1,250 201 Accounts payable 1,120 210 Wagos payable 860 236 Unearned computer services revenue 1,380 301 s. Rey, Capital 82,371 302 S. Rey, Withdrawals 403 Computer services revenue 413 Sales 414 Sales returns and allowances 415 Sales discounts 502 Cost of goods sold 612 Depreciation expense-office equipment 613 Depreciation expense-Computer equipment 0 0 OOOOO 0 502 Cost of goods sold 612 Depreciation expense-office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 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 piccommodate the company's 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 $215 per day. Four of the five days relate to wages payable re accrued in the prior year. January 5 Santana Rey invested an additional $24,500 cash in the company. January 7 The company purchased $5,800 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. January 9 The company received $2,718 cash from Gomez Company as full payment on its account. January 11 The company completed a five-day project for Alex's Engineering Company and billed it $5,320, which is the total price of $6,700 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 $4,500 and a cost of $3,540 to Liu Corporation, invoice dated January 13. January 15 The company paid $700 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,110 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 $400 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 Kannas corporation and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cont, net of the discount, was $486. January 26 The company purchased 59,600 of merchandise from Kansas Corporation with terms of 1/10, 1/30, POB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,600 cost for $5,890 on credit to KC, Incorporated, invoice dated January 26. January 26 The company sold merchandise with a $4,600 cost for $5,890 on credit to KC, Incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days' work at $215 per day. February 1 The company paid $2,625 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 $486 credit from merchandise returned on January 24. February 5 The company paid $430 cash to Facebook for an advertisement to appear on February 5 only. February 11 The company received the balance due from Alex's Engineering Company for fees billed on January 11. February 15 S. Roy withdrew $4,770 cash from the company for personal use. February 23 The company sold merchandise with a $2,580 cost for $3,250 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $215 per day. February 27 The company reimbursed Santana Rey $288 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,770 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 $810 cash for minor repairs to the company's computer. March 16 The company received $5,420 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $3,890 to Harris Office Products, consisting of amounts 15 (of $1,120) and March 8 March 24 The company billed Eany Leasing for $9,057 of computing service provided. March 25 The company sold merchandise with a $2,022 cost for $2,890 on credit to Wildcat Services, invoice dated March 25. March 30 The company sold merchandise with a $1,208 cost for $2,350 on credit to IFM Company, invoice a dated March 30. March 31 The company reimbursed Santana Rey $96 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 $2,195. 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 $215 per day. d. Prepaid rent of $2,625 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,250. f. Depreciation on the office equipment for January 1 through March 31 is $320. g. The March 31 amount of merchandise inventory still available totals $694 Journal entry worksheet .... 37 The company paid Kansas Corp. for the invoice dated January 7, net of the discount. Note: Enter debits before credits. General Journal Debit Credit Date January 17 Record entry Clear entry View general Journal Journal entry worksheet