Question

Required information [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. Debit $48, 442 Credit in in N опPooooooooooo O COD O on COW 00 $ 350 21,400 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 Common stock 318 Retained earnings Retained Dividends Computer services revenue Sales Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment 623 Wages expense Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 1 Ho OOO OOO OO 319 # Nin OOOOOOOOOOO 1
HELLO PLZ MAKE A JOURNAL ENTRY, THAN A 6 COLUM WORKSHEET, AN INCOME STATMENT AND CLASSIFIED BLAANCE SHEET THANK YOU <3

Answer 1

Credit Business Solutions Journal entries Date Account 4-Jan Wages Payable Wages expense Cash Debit $ $ Calculation =175*4 700 175 $ 875 $ 23,200 5-Jan Cash Common stock $ 23,200 $ 7,000 7-Jan Merchandise Inventory Accounts Payable $ 7,000 $ 2,758 9-Jan Cash Gomez Co $ 2,758 11-Jan Unearned computer services revenue Alex's Engineering Co Computer services revenue $ $ 1,410 5,360 $ 6,770 $ 4,500 $ 4,500 13-Jan Liu Co Sales Cost of goods sold Merchandise Inventory $ 3,480 $ 3,480 $ 620 15-Jan Merchandise Inventory Cash $ 620 $ 4,110 16-Jan Cash Computer services revenue $ 4,110 $ 7,000 17-Jan Accounts Payable Cash Merchandise Inventory $ $ 6,930 70 =7,000*1% $ 700 20-Jan Sales returns and allowances Liu Co $ 700 22-Jan Cash Sales discounts Liu Co $ $ 3,762 38 =3,800*1% 3,800 =4,500-700 $ $ 481 -476/99*100 24-Jan Accounts Payable Merchandise Inventory $ 481 $ 9,300 26-Jan Merchandise Inventory Accounts Payable $ 9,300 $ 5,940 $ 5,940 26-Jan KC. Inc. Sales Cost of goods sold Merchandise Inventory $ 4,610 $ 4,610 $ 1,750 =175*10 $ 1,750 31-Jan Wages expense Cash Feb 1-Feb Prepaid rent Cash $ 2,565 $ 2,565 $ 8,819 3-Feb Accounts Payable Cash Merchandise Inventory $ $ =9,300-481 8,731 88 +8,819*1% $ 580 5-Feb Advertising expense Cash $ 580 $ 5,360 11-Feb Cash Alex's Engineering Co $ 5,360 $ 4,720 15-Feb Dividends Cash $ 4,720 $ 3,420 $ 3,420 23-Feb Delta Co Sales Cost of goods sold Merchandise Inventory $ 2,530 $ 2,530 $ 1,400 =175*8 26-Feb Wages expense Cash $ 1,400 $ 96 $ 96 27-Feb Mileage expense Cash March 8-Mar Computer supplies Accounts Payable $ 2,920 $ 2,920 $ 3,420 9-Mar Cash Delta Co $ 3,420 $ 900 11-Mar Reapirs expense - Computer Cash $ 900 $ 5,330 16-Mar Cash Computer services revenue $ 5,330 $ 4,020 =1,100+2,920 19-Mar Accounts Payable Cash $ 4,020 $ 9,187 24-Mar Easy Leasing Computer services revenue $ 9,187 $ 2,980 $ 2,980 25-Mar Wildcat Services Sales Cost of goods sold Merchandise Inventory $ 2,092 $ 2,092 $ 2,230 $ 2,230 30-Mar IFM CO Sales Cost of goods sold Merchandise Inventory $ 1,138 $ 1,138 $ 160 $ 160 31-Mar Mileage expense Cash Adjusting entries 31-Mar Computer supplies expense Computer supplies $ 1,585 =730+2,920-2,065 $ 1,585 $ 627 31-Mar Insurance expense Prepaid Insurance $ 627 $ 1,225 =175*7 31-Mar Wages expense Wages Payable $ 1,225 $ 2,565 31-Mar Rent expense Prepaid rent $ 2,565 $ 1,120 31-Mar Depreciation expense - Computer equipment Accumulated Depreciation - Computer equipment $ 1,120 $ 350 31-Mar Depreciation expense - Office equipment Accumulated Depreciation - Office equipment $ 350 $ 1,917 =2,431-514 31-Mar Cost of goods sold Merchandise Inventory $ 1,917

Business Solutions As of Mar 31, 2020 Unadjusted TB Debit Credit 63,035 As of Mar 31, 2020 Adjustments Debit Credit As of Mar 31, 2020 Adjusted TB Debit Credit 63,035 2,980 9,187 5,280 2,980 9,187 5,280 5,940 5,940 514 2,431 3,650 1,881 3,420 8,060 1,917 1,585 627 2,565 2,065 1,254 855 8,060 350 350 700 21,400 21,400 1,120 1,120 2,240 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 Co 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 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 expense 684 Reapirs expense - Computer 1,225 1,225 98,736 6,960 98,736 6,960 4,720 4,720 25,397 19,070 25,397 19,070 700 38 13,850 3,325 1,917 350 1,120 1,225 627 2,565 1,585 700 38 15,767 350 1,120 4,550 627 2,565 1,585 580 256 580 256 900 151,633 900 154,328 151,633 9 ,389 9,389 154,328

25,397 Business Solutions Income statement For three months ended March 31, 2020 Computer services revenue Sales Less: Sales returns and allowances Sales discounts Net Sales revenue Total Revenues 19,070 (700) (38) 18,332 43,729 15,767 350 1,120 4,550 627 Expenses: 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 Reapirs expense - Computer Total Expenses Net Income 2,565 1,585 580 256 900 28,300 15,429 Business Solutions Statement of retained earnings For three months ended March 31, 2020 Retained earnings, Jan 1, 2020 Net Income Less Dividends Retained earnings, Mar 31, 2020 6,960 15,429 (4,720) 17,669

Business Solutions Balance Sheet As of March 31, 2020 Assets Current Assets Cash Accounts Receivable Merchandise Inventory Computer supplies Prepaid Insurance Prepaid rent Total Current Assets 63,035 23,387 514 2,065 1,254 855 91,110 7,360 Plant Assets Office equipment Accumulated Depreciation - Office equipment Computer equipment Accumulated Depreciation - Computer equipment Total Plant Assets Total Assets 8,060 (700) 21,400 (2,240) 19,160 26,520 117,630 Liabilities & Stockholders Equity Current Liabilities Wages Payable 1,225 Stockholders Equity Common Stock Retained earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 98,736 17,669 116,405 117,630

Credit Date Debit Date Credit Wildcat Services - AR Op bal $ . 25-Mar $ 2,980 Date Debit Date Easy Leasing - AR Op bal $ . 24-Mar $ 9,187 Business Solutions Ledger accounts Date Debit Date Credit Date Debit Date Credit Cash Alex's Engineering Co-AR Op bal $ 43,442 4-Jan $ 875 Op bal $ . 5-Jan $ 23,200 15-Jan $ 620 11-Jan $ 5,360 11-Feb $ 5,360 9. Jan $ 2,758 17. Jan $ 6,930 16-Jan $ 4,110 31-Jan $ 1,750 22-Jan S 3,762 1-Feb $ 2,565 11-Feb $ 5,360 3-Feb $ 8,731 9-Mar $ 3,420 5-Feb $ 580 16-Mar $ 5,330 15 Feb $ 4,720 26-Feb $ 1,400 27-feb S 96 11-Mar $ 900 19-Mar $ 4,020 31-Mar $ 160 Bal $ Bal. $ 63,035 IFM CO-AR 3,050 2,230 Bal. $ . Llu CO-AR Op bal $ - 13-Jan $ 4,500 20-Jan $ 22 Jan $ 2.980 Gomez Co-AR 2,758 9-Jan $ 2,758 Bal $ 9.187 Delta CO-AR Op bal $ . 23-Feb $ 3,420 9-Mar $ 3,420 Op bal Op bal $ 30-Mar $ $ 700 3,800 Bal. $ Bal. $ 5,280 KC. Inc. - AR .. 5,940 . Dream Inc. -AR . Bal S . Computer supplies Op bal $ 730 8. Mar $ 2,920 Op bal $ Op bal $ 26-Jan $ Bal. $ . Merchandise Inventory Op bal $ . 7-Jan $ 7,000 13-Jan $ 3,480 15-Jan $ 620 17-Jan $ 70 26-Jan $ 9,300 26-Jan $ 4,610 24-Jan S 481 3-Feb $ 88 23-Feb $ 2,530 25-Mar $ 2,092 30-Mar $ 1,138 Bal $ Bal. Bal 5,940 Office Equip 8,060 $ . Accum. Depr.- Office Equip Op bal $ $ 2,431 Computer Equipment $ 21,400 Bal. $ 3,650 Accum. Depr. - Computer Equip Op bal $ 1,120 Op bal $ 350 Op bal Bal $ 350 $ 1,120 $ 3,060 Prepaid Insurance $ 1,381 Bal. Prepaid rent Op bal $ 855 1-Feb $ 2,565 Bal. $ 21,400 Accounts Payable 17-Jan $ 7,000 Op bal $ 1,100 24-Jan $ 481 7-Jan $ 7,000 3-Feb $ 8,819 26-Jan $ 9,300 19-Mar $ 4,020 8-Mar $ 2,920 Bal. Wages Payable 4-Jan $ 700 Op bal Op bal $ 700 Bal. $ - $ . Bal $ 1,881 Unearned computer services revenue 11-Jan $ 1,410 Op bal $ 1,410 $ 3,420 Common stock Op bal $ 75,536 5-Jan $ 23,200 Bal. Retained eamings Op bal Bal. Dividends 15-Feb $ 4,720 $ 6,960 98,736 Bal 6,960 Sales returns and allowances 20-Jan $ 700 Bal. $ 4,720 Sales discounts 22-Jan $ 38 Bal. S . Computer services revenue 11-Jan $ 6,770 15-Jan $ 4,110 16-Mar $ 5,330 24-Mar $ 9,187 Bal. $ sales 13-Jan $ 26-Jan $ 23-Feb $ 25-Mar $ 30-Mar $ 4,500 5,940 3,420 2,990 2,230 $ 25,397 Bal. $ 19,070 Depreciation expense - Office equip Bal. $ 700 Depreciation expense-Computer equip Bal. Cost of goods sold 13-Jan $ 3,480 26-Jan $ 4,610 23-Feb $ 2,530 25-Mar $ 2,092 30-Mar $ 1.138 Bal. S 38 Wages expense 4-Jan $ 175 31-Jan $ 1,750 25-Feb $ 1,400 Bal $ 13,850 Bal. $ - Insurance expense Rent expense Computer supplies expens Bal. $ 3,325 Advertising expense 5-Feb $ 530 Bal. Bal. $ 580 $ Miscellaneous expense Bal. $ Mileage expense 27-Feb $ 31 Mar $ 160 Bal. S Reapirs expense - Computer 11- Mar $ 900 Bal. $ 256 Bal. $ . Bal. $ 900