Question

Serial Problem Business Solutions LO P1, P2, P3, P4 (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 Debit $48,372 @ © @ 3,000 © 2,668 @ @ © @ 580 1,665 825 8,000 400 20,000 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 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 1,250 1,100 500 1,500 73,000 7,360 @ @ @ © @ @ @ @ @

Prepare journal entries to record each of the January through March transactions.

Answer 1

Jan. 04 Wages Payable Wages Expense 500 125 Cash 625 Janios 2 sowo 25000 Cash S. Rey Capital Merchandise inventory, 5800 Accounts payable Jan.o7 sou Jang 2668 Comez Coin 2668 Jan.ll Alex Engineering 5500 Unenned Servia Revenue 1500 Computer Sewrica Revenue 7000 Jan. 13 Liu Cone 5200 Sales 5200 Janis Cost of goods Sold 3560 3560 Merchandise invertory Merchandise inventory Janilst 6oo Cash 600 yooo 0 Jan. 16 Yovo Cash Computer servica Revenue Accounts Payable 5800 Cash Merchandire inventory Jonelt 5742 58 80

Pnce No. Jan. 20 Sales Return & Allowances 500 Lin Camp 500 Jan, 22 Cash Sales Discount 4653 47 4700 Jan. 24 Lin Comp No journal Entry Merchandise inventory Jan. 26 9000 Account Payable gooo Jan. 26 5800 kC Inc Sales 5800 Jan 26 a Jon24 4640 Cost of goods sold Mechandisse inventory 4640 Accounts Payable 496 Menchantise inventory 996 Wages Expense 1250 Cash 1250 2 Jan 31 Febiol 2475 Prepaid Rent 3 Cash 2475 Feb 03 8504 Accounts Payable Merchandise inventory 8419 85

Febios 5500 5500 Alex Engineering Tes ist 4800 Dividends Cash 4800 Teb. 23 Delta Inc. Sales 3220 3220 2660 Feb.28 2600 Cost of goods sold Merchandise inventory Wages Expenne Feb-26 locou Cash 192 Feb. 27 Mileage Expense (600x032) Cash 192 Men G Computer Supplies Accounts payable 2-720 2730 3220 Mon 9 Cash Delta Inn 3220 960 Manill Repon Expense - Computer Cash 960 5260 Cash Mar 16. 5260 Computer Serie Revenue

Bima Date: Pago No Manila Accounts Payable 3830 Cash 3830 Mon 24 9047 Easy Leasing 9047 Computer Serviu Revenue Wildkat Service 2800 Sales Man 25 2800 May. 25 2002 2002 Cost of goods Sold Merchandise Inventory IFM Gmpony a ( Mon 30 2220 2220 Sales 2 Man 30 1048 Cost of goods sold Merchandise inventory Mileage Expense . Cash 128 Mar 31 (28

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