Question

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 Debit $48,392 3,090 2,838 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 Accumulated depreciation-office equipment Computer equipment Accumulated depreciation-Computer equipment 201 Accounts payable Wages payable 236 Unearned computer services revenue 307 Common stock 318 Retained earnings 319 Dividends 403 Computer services revenue 660 2,124 875 8,160 164 $ 370 21,200 1,080 1,140 660 1,340 73,789 8,960

Answer 1

	Journal Entries
Date	Account Title	F.NO.	Debit	Credit
4-Jan	Wages expense	623	215
	Wages payable	210	860
	Cash	101		1075
05-Jan	Cash	101	23200
	Common stock	307		23200
7-Jan	Merchandise Inventory	119	6100
	Accounts payable	201		6100
9-Jan	Cash	101	2748
	Gomez Co.	106.6
11-Jan	Alex's Engg. Co	106.1	5410
	Unearned Computer Services Revenue	236	1430
	Computer services revenue	403		6840
13-Jan	Liu Corp.	106.5	4600
	Sales	412		4600
	Cost of Goods sold	502	3510
	Merchandise Inventory	119		3510
15-Jan	Merchandise Inventory	119	790
	Cash	101		790
16-Jan	Cash	101	4070
	Computer services revenue	403		4070
17-Jan	Accounts payable	201	6100
	Merchandise Inventory	119		61
	Cash(6100*(1-1%)	101		6039
20-Jan	Sales return & allowances	414	600
	Liu Crop.	106.5		600
22-Jan	Cash(4600-600)	101	4000
	Liu Crop.	106.5		4000
24-Jan	Accounts payable	201	486
	Merchandise Inventory	119		486
26-Jan	Merchandise Inventory	119	9300
	Accounts payable	201		9300
	KC inc.	106.5	5930
	Sales	413		5930
	Cost of Goods sold	502	4530
	Merchandise Inventory	119		4530
31-Jan	Wages expense	623	2150
	Cash	101		2150
1-Feb	Prepaid Rent	131	2505
	Cash	101		2505
3-Feb	Accounts payable	201	8814
	Cash	101		8721
	Merchandise Inventory	119		93
	(9300-486-93)
5-Feb	Advertising expense	655	580
	Cash	101		580
11-Feb	Cash	101	5410
	Alex's Engg. Co	106.5		5410
15-Feb	Dividends	319	4640
	Cash	101		4640
23-Feb	Delta Co.	106.5	3350
	Sales	413		3350
	Cost of Goods sold	502	2480
	Merchandise expense	119		2480
26-Feb	Wages expense	623	1720
	Cash	101		1720
	(215(8)
27-Feb	Mileage expense	676	96
	Cash	101		96
8-Mar	Computer supplies	126	2850
	Accounts payable	201		2850
9-Mar	Cash	101	3350
	Delta Co.	106.5		3350
11-Mar	Repairs Expense-Computer	684	880
	Cash	101		880
16-Mar	Cash	101	5310
	Computer services revenue	403		5310
19-Mar	Accounts payable	201	4110
	Cash	101		4110
	(1260+2850)
24-Mar	Easy Leasing	106.3	9077
	Computer services revenue	403		9077
25-Mar	Wildcat Services	106.2	2920
	Sales	413		2920
	Cost of Goods sold	502	2122
	Merchandise Inventory	119		2122
30-Mar	IFM Co.	106.4	2350
	Sales	413		2350
	Cost of Goods sold	502	1188
	Merchandise Inventory	119		1188
31-Mar	Mileage expense	676	352
	Cash	101		352
			150133	150133

Adusting Journal entries F.NO. Debit Credit

a. Computer supplies exp. 652 1495

Computer supplies 126 1495

b Insurance expense 627 618

prepaid Insurance 128 618

c Wages expense 623 1505

Wages payable 210 1505

(215*7)

d Rent expense 640 2505

Prepaid Rent 131 2505

e. Depon. Exp. Comp.eqpt 613 1210

Acc. Depn Comp..Eqpt 168 1210

f Depn.Exp off,eqpt 612 300

Acc. Depn. off .Eqpt 164 300

g Cost of goods sold 502 1036

Merchandise Inventory 119 1036

(1720-684)

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