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.

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 $205 per day. Four of the five days relate to wages payable that were accrued in the prior year.
		5		Santana Rey invested an additional $23,600 cash in the company in exchange for more common stock.
		7		The company purchased $5,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.
		9		The company received $2,788 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 $5,450, which is the total price of $6,840 less the advance payment of $1,390. The company debited Unearned Computer Services Revenue for $1,390.
		13		The company sold merchandise with a retail value of $4,100 and a cost of $3,440 to Liu Corp., invoice dated January 13.
		15		The company paid $700 cash for freight charges on the merchandise purchased on January 7.
		16		The company received $4,180 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 $600 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 $486.
		26		The company purchased $9,400 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 $4,560 cost for $5,970 on credit to KC, Inc., invoice dated January 26.
		31		The company paid cash to Lyn Addie for 10 days’ work at $205 per day.
Feb.		1		The company paid $2,535 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 $486 credit from merchandise returned on January 24.
		5		The company paid $550 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 $2,470 cost for $3,280 on credit to Delta Co., invoice dated February 23.
		26		The company paid cash to Lyn Addie for eight days’ work at $205 per day.
		27		The company reimbursed Santana Rey $224 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense."
Mar.		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 $910 cash for minor repairs to the company’s computer.
		16		The company received $5,270 cash from Dream, Inc., for computing services provided.
		19		The company paid the full amount due of $4,010 to Harris Office Products, consisting of amounts created on December 15 (of $1,250) and March 8.
		24		The company billed Easy Leasing for $9,197 of computing services provided.
		25		The company sold merchandise with a $2,042 cost for $2,960 on credit to Wildcat Services, invoice dated March 25.
		30		The company sold merchandise with a $1,078 cost for $2,240 on credit to IFM Company, invoice dated March 30.
		31		The company reimbursed Santana Rey $256 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:

1. The March 31 amount of computer supplies still available totals $2,145.
2. Prepaid Insurance coverage of $663 expired during this 3-month period.
3. Lyn Addie has not been paid for seven days of work at the rate of $205 per day.
4. Prepaid rent of $2,535 expired during this 3-month period.
5. Depreciation on the computer equipment for January 1 through March 31 is $1,080.
6. Depreciation on the office equipment for January 1 through March 31 is $240.
7. The March 31 amount of merchandise inventory still available totals $564.

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

please i need help

Answer 1

Answer-

Date	General Journal		Debit	Credit
Jan-04	Wages Payable	Dr	820
	Wages Expenses	Dr	205
	Cash	Cr		1025
Jan-05	Cash	Dr	23600
	Common Stock	Cr		23600
Jan-07	Inventory	Dr	5900
	Kansas Corp.	Cr		5900
Jan-09	Cash	Dr	2788
	Gomez Co.	Cr		2788
Jan-11	Alex Engineering Co.	Dr	5450
	Unearned Computer Services Revenue	Dr	1390
	Computer Services Revenue	Cr		6840
Jan-13	Liu Corp.	Dr	4100
	Revenue	Cr		4100
Jan-13	COGS	Dr	3440
	Inventory	Cr		3440
Jan-15	Inventory	Dr	700
	Bank	Cr		700
Jan-16	Cash	Dr	4180
	Revenue	Cr		4180
Jan-17	Kansas Corp.	Dr	5900
	Bank	Cr		5841
	Discount received on Purchases	Cr		59
Jan-20	Provision for doubtful allowance	Dr	600
	Liu Corp.	Cr		600
Jan-22	Bank	Dr	3459
	Revenue	Dr	600
	Discount given on sales	Dr	41
	Provision for doubtful allowance	Cr		600
	Liu Corp.	Cr		3500
Jan-24	Kansas Corp.	Dr	486.00
	Discount received on Purchases	Dr	4.91
	Inventory	Cr		490.91
Jan-26	Inventory	Dr	9400
	Kansas Corp.	Cr		9400
Jan-26	KC, Inc.	Dr	5970
	Revenue	Cr		5970
Jan-26	COGS	Dr	4560
	Inventory	Cr		4560
Jan-31	Wages Expenses	Dr	2050
	Bank	Cr		2050
Feb-01	Prepaid Rent	Dr	2535
	Bank	Cr		2535
Feb-03	Kansas Corp.	Dr	8914
	Bank	Cr		8820
	Discount received on Purchases	Cr		94
Feb-05	Advertisement Expenses	Dr	550
	Bank	Cr		550
Feb-11	Bank	Dr	5450
	Alex Engineering Co.	Cr		5450
Feb-15	Dividend	Dr	4790
	Cash	Cr		4790
Feb-23	Delta Co.	Dr	3280
	Revenue	Cr		3280
Feb-23	COGS	Dr	2470
	Inventory	Cr		2470
Feb-26	Wages Expenses	Dr	1640
	Bank	Cr		1640
Feb-27	Mileage Expense	Dr	224
	Cash	Cr		224
Mar-08	Inventory	Dr	2760
	Harris Office Products	Cr		2760
Mar-09	Bank	Dr	3280
	Delta Co.			3280
Mar-11	Repair & Maintenance Expenses	Dr	910
	Cash	Cr		910
Mar-16	Cash	Dr	5270
	Revenue	Cr		5270
Mar-19	Harris Office Products	Dr	4010
	Bank	Cr		4010
Mar-24	Easy Leasing	Dr	9197
	Revenue	Cr		9197
Mar-25	Wildcat Services	Dr	2960
	Revenue	Cr		2960
Mar-25	COGS	Dr	2042
	Inventory	Cr		2042
Mar-30	Ifm Company	Dr	2240
	Revenue	Cr		2240
Mar-30	COGS	Dr	1078
	Inventory	Cr		1078
Mar-31	Mileage Expense	Dr	256
	Cash	Cr		256
Mar-31	Computer Supplies	Dr	1475
	Accounts Payable	Cr		1475
Mar-31	Insurance Expenses	Dr	663
	Prepaid Insurance	Cr		663
Mar-31	Wages Expenses	Dr	1435
	Wages Payable	Cr		1435
Mar-31	Rent Expenses	Dr	2535
	Prepaid Rent	Cr		2535
Mar-31	Depreciation	Dr	1080
	Computer Equipment	Cr		1080
Mar-31	Depreciation	Dr	240
	Office Equipment	Cr		240
Mar-31	Shortage of marchandise Inventory	Dr	4115.09
	Inventory	Cr		4115.09

Inventory should be available based on above transactions=	4,679.09
Actual Inventory available	564
Shortage of marchandise Inventory