Santana Rey created Business Solutions on October 1, 2017. The company has been successful, and its...

 

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Santana Rey created Business Solutions on October 1, 2017. 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, 2017. 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. No. Account Title Debit Credit 101 Cash $48,472 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 3,090 106.4 IFM Co. 106.5 Liu Corp. 0. 106.6 Gomez Co. 106.7 Delta Co. 2,838 106.8 KC, Inc. 0. 106.9 Dream, Inc. 119 Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital s. 126 610 128 2,070 131 865 8,120 $ 163 164 290 167 20,400 168 1,160 1,190 201 210 660 236 1,380 301 81,785 S. Rey, Withdrawals Computer services revenue Sales 302 403 413 414 Sales returns and allowances 415 Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense 502 612 613 623 637 640 Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 652 655 676 677 684 4 The company paid cash to Lyn Addie for five days' work at the rate of $165 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. 7 The company purchased $6,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,838 cash from Gomez Co. as full payment on its account. company completed a five-day project for Alex's Engineering Co. and billed it $5,470, which is the total price of $6,850 less the advance payment of $1,380. 13 The company sold merchandise with a retail value of $4,100 and a cost of $3,380 to Liu Corp., invoice dated January 13. The company paid $630 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,120 cash from Delta Co. for computer services provided. The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 Liu Corp. returned $600 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $320 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products in cost of goods sold.) 22 The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise. Jan. 11 The 15 17 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $486. 26 The company purchased $9,600 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 $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in Feb. the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company February 23. sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The company reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $940 cash for minor repairs to the company's computer. 16 The company received $5,360 cash from Dream, Inc., for computing services provided. 10 mhe company naid the Mar. due to Harrie nFfine Drnduste coneieting of amAunte ereatad on destination, invoice dated January 26. 26 The company sold merchandise with a $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice Feb. reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). Mar. dated March 8. received the balance due from Delta Co. for merchandise sold on February 23. 9 The company fec 11 The company paid $940 cash for minor repairs to the company's computer. 16 The The company paid the full amount due to Harris Office Products, consisting of amounts created on December l15 (of $1,190) and March 8. 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,960 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,108 cost for $2,410 on credit to IFM Company, invoice dated company received $5,360 cash from Dream, Inc., for computing services provided. 19 March 30. 31 The company reimbursed Santana Rey for business automobile mileage (700 miles at $0.32 per mile). 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 $2,125. b. Three more months have expired since the company purchased its annual insurance policy at a $2,760 cost for 12 months of coverage. c. Lyn Addie has not been paid for seven days of work at the rate of $165 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $865. e. Depreciation on the computer equipment for January 1 through March 31 is $1,160. f. Depreciation on the office equipment for January 1 through March 31 is $290. g. The March 31 amount of merchandise inventory still available totals $564. 3. Prepare a partial work sheet consisting of the first six columns that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. BUSINESS SOLUTIONS Partial Work Sheet March 31, 2018 Unadjusted Trial Balance Adjusted Trial Balance Adjustments No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. 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 301 S. Rey, Capital 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 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 Totals Santana Rey created Business Solutions on October 1, 2017. 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, 2017. 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. No. Account Title Debit Credit 101 Cash $48,472 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 3,090 106.4 IFM Co. 106.5 Liu Corp. 0. 106.6 Gomez Co. 106.7 Delta Co. 2,838 106.8 KC, Inc. 0. 106.9 Dream, Inc. 119 Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital s. 126 610 128 2,070 131 865 8,120 $ 163 164 290 167 20,400 168 1,160 1,190 201 210 660 236 1,380 301 81,785 S. Rey, Withdrawals Computer services revenue Sales 302 403 413 414 Sales returns and allowances 415 Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense 502 612 613 623 637 640 Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 652 655 676 677 684 4 The company paid cash to Lyn Addie for five days' work at the rate of $165 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. 7 The company purchased $6,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,838 cash from Gomez Co. as full payment on its account. company completed a five-day project for Alex's Engineering Co. and billed it $5,470, which is the total price of $6,850 less the advance payment of $1,380. 13 The company sold merchandise with a retail value of $4,100 and a cost of $3,380 to Liu Corp., invoice dated January 13. The company paid $630 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,120 cash from Delta Co. for computer services provided. The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 Liu Corp. returned $600 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $320 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products in cost of goods sold.) 22 The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise. Jan. 11 The 15 17 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $486. 26 The company purchased $9,600 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 $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in Feb. the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company February 23. sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The company reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $940 cash for minor repairs to the company's computer. 16 The company received $5,360 cash from Dream, Inc., for computing services provided. 10 mhe company naid the Mar. due to Harrie nFfine Drnduste coneieting of amAunte ereatad on destination, invoice dated January 26. 26 The company sold merchandise with a $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice Feb. reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). Mar. dated March 8. received the balance due from Delta Co. for merchandise sold on February 23. 9 The company fec 11 The company paid $940 cash for minor repairs to the company's computer. 16 The The company paid the full amount due to Harris Office Products, consisting of amounts created on December l15 (of $1,190) and March 8. 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,960 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,108 cost for $2,410 on credit to IFM Company, invoice dated company received $5,360 cash from Dream, Inc., for computing services provided. 19 March 30. 31 The company reimbursed Santana Rey for business automobile mileage (700 miles at $0.32 per mile). 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 $2,125. b. Three more months have expired since the company purchased its annual insurance policy at a $2,760 cost for 12 months of coverage. c. Lyn Addie has not been paid for seven days of work at the rate of $165 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $865. e. Depreciation on the computer equipment for January 1 through March 31 is $1,160. f. Depreciation on the office equipment for January 1 through March 31 is $290. g. The March 31 amount of merchandise inventory still available totals $564. 3. Prepare a partial work sheet consisting of the first six columns that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. BUSINESS SOLUTIONS Partial Work Sheet March 31, 2018 Unadjusted Trial Balance Adjusted Trial Balance Adjustments No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. 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 301 S. Rey, Capital 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 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 Totals Santana Rey created Business Solutions on October 1, 2017. 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, 2017. 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. No. Account Title Debit Credit 101 Cash $48,472 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 3,090 106.4 IFM Co. 106.5 Liu Corp. 0. 106.6 Gomez Co. 106.7 Delta Co. 2,838 106.8 KC, Inc. 0. 106.9 Dream, Inc. 119 Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital s. 126 610 128 2,070 131 865 8,120 $ 163 164 290 167 20,400 168 1,160 1,190 201 210 660 236 1,380 301 81,785 S. Rey, Withdrawals Computer services revenue Sales 302 403 413 414 Sales returns and allowances 415 Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense 502 612 613 623 637 640 Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 652 655 676 677 684 4 The company paid cash to Lyn Addie for five days' work at the rate of $165 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. 7 The company purchased $6,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,838 cash from Gomez Co. as full payment on its account. company completed a five-day project for Alex's Engineering Co. and billed it $5,470, which is the total price of $6,850 less the advance payment of $1,380. 13 The company sold merchandise with a retail value of $4,100 and a cost of $3,380 to Liu Corp., invoice dated January 13. The company paid $630 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,120 cash from Delta Co. for computer services provided. The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 Liu Corp. returned $600 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $320 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products in cost of goods sold.) 22 The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise. Jan. 11 The 15 17 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $486. 26 The company purchased $9,600 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 $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in Feb. the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company February 23. sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The company reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $940 cash for minor repairs to the company's computer. 16 The company received $5,360 cash from Dream, Inc., for computing services provided. 10 mhe company naid the Mar. due to Harrie nFfine Drnduste coneieting of amAunte ereatad on destination, invoice dated January 26. 26 The company sold merchandise with a $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice Feb. reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). Mar. dated March 8. received the balance due from Delta Co. for merchandise sold on February 23. 9 The company fec 11 The company paid $940 cash for minor repairs to the company's computer. 16 The The company paid the full amount due to Harris Office Products, consisting of amounts created on December l15 (of $1,190) and March 8. 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,960 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,108 cost for $2,410 on credit to IFM Company, invoice dated company received $5,360 cash from Dream, Inc., for computing services provided. 19 March 30. 31 The company reimbursed Santana Rey for business automobile mileage (700 miles at $0.32 per mile). 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 $2,125. b. Three more months have expired since the company purchased its annual insurance policy at a $2,760 cost for 12 months of coverage. c. Lyn Addie has not been paid for seven days of work at the rate of $165 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $865. e. Depreciation on the computer equipment for January 1 through March 31 is $1,160. f. Depreciation on the office equipment for January 1 through March 31 is $290. g. The March 31 amount of merchandise inventory still available totals $564. 3. Prepare a partial work sheet consisting of the first six columns that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. BUSINESS SOLUTIONS Partial Work Sheet March 31, 2018 Unadjusted Trial Balance Adjusted Trial Balance Adjustments No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. 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 301 S. Rey, Capital 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 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 Totals Santana Rey created Business Solutions on October 1, 2017. 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, 2017. 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. No. Account Title Debit Credit 101 Cash $48,472 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 3,090 106.4 IFM Co. 106.5 Liu Corp. 0. 106.6 Gomez Co. 106.7 Delta Co. 2,838 106.8 KC, Inc. 0. 106.9 Dream, Inc. 119 Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital s. 126 610 128 2,070 131 865 8,120 $ 163 164 290 167 20,400 168 1,160 1,190 201 210 660 236 1,380 301 81,785 S. Rey, Withdrawals Computer services revenue Sales 302 403 413 414 Sales returns and allowances 415 Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense 502 612 613 623 637 640 Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 652 655 676 677 684 4 The company paid cash to Lyn Addie for five days' work at the rate of $165 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. 7 The company purchased $6,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,838 cash from Gomez Co. as full payment on its account. company completed a five-day project for Alex's Engineering Co. and billed it $5,470, which is the total price of $6,850 less the advance payment of $1,380. 13 The company sold merchandise with a retail value of $4,100 and a cost of $3,380 to Liu Corp., invoice dated January 13. The company paid $630 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,120 cash from Delta Co. for computer services provided. The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 Liu Corp. returned $600 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $320 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products in cost of goods sold.) 22 The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise. Jan. 11 The 15 17 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $486. 26 The company purchased $9,600 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 $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in Feb. the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company February 23. sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The company reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $940 cash for minor repairs to the company's computer. 16 The company received $5,360 cash from Dream, Inc., for computing services provided. 10 mhe company naid the Mar. due to Harrie nFfine Drnduste coneieting of amAunte ereatad on destination, invoice dated January 26. 26 The company sold merchandise with a $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice Feb. reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). Mar. dated March 8. received the balance due from Delta Co. for merchandise sold on February 23. 9 The company fec 11 The company paid $940 cash for minor repairs to the company's computer. 16 The The company paid the full amount due to Harris Office Products, consisting of amounts created on December l15 (of $1,190) and March 8. 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,960 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,108 cost for $2,410 on credit to IFM Company, invoice dated company received $5,360 cash from Dream, Inc., for computing services provided. 19 March 30. 31 The company reimbursed Santana Rey for business automobile mileage (700 miles at $0.32 per mile). 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 $2,125. b. Three more months have expired since the company purchased its annual insurance policy at a $2,760 cost for 12 months of coverage. c. Lyn Addie has not been paid for seven days of work at the rate of $165 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $865. e. Depreciation on the computer equipment for January 1 through March 31 is $1,160. f. Depreciation on the office equipment for January 1 through March 31 is $290. g. The March 31 amount of merchandise inventory still available totals $564. 3. Prepare a partial work sheet consisting of the first six columns that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. BUSINESS SOLUTIONS Partial Work Sheet March 31, 2018 Unadjusted Trial Balance Adjusted Trial Balance Adjustments No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. 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 301 S. Rey, Capital 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 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 Totals Santana Rey created Business Solutions on October 1, 2017. 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, 2017. 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. No. Account Title Debit Credit 101 Cash $48,472 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 3,090 106.4 IFM Co. 106.5 Liu Corp. 0. 106.6 Gomez Co. 106.7 Delta Co. 2,838 106.8 KC, Inc. 0. 106.9 Dream, Inc. 119 Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital s. 126 610 128 2,070 131 865 8,120 $ 163 164 290 167 20,400 168 1,160 1,190 201 210 660 236 1,380 301 81,785 S. Rey, Withdrawals Computer services revenue Sales 302 403 413 414 Sales returns and allowances 415 Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense 502 612 613 623 637 640 Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 652 655 676 677 684 4 The company paid cash to Lyn Addie for five days' work at the rate of $165 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. 7 The company purchased $6,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,838 cash from Gomez Co. as full payment on its account. company completed a five-day project for Alex's Engineering Co. and billed it $5,470, which is the total price of $6,850 less the advance payment of $1,380. 13 The company sold merchandise with a retail value of $4,100 and a cost of $3,380 to Liu Corp., invoice dated January 13. The company paid $630 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,120 cash from Delta Co. for computer services provided. The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 Liu Corp. returned $600 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $320 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products in cost of goods sold.) 22 The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise. Jan. 11 The 15 17 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $486. 26 The company purchased $9,600 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 $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in Feb. the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company February 23. sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The company reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $940 cash for minor repairs to the company's computer. 16 The company received $5,360 cash from Dream, Inc., for computing services provided. 10 mhe company naid the Mar. due to Harrie nFfine Drnduste coneieting of amAunte ereatad on destination, invoice dated January 26. 26 The company sold merchandise with a $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice Feb. reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). Mar. dated March 8. received the balance due from Delta Co. for merchandise sold on February 23. 9 The company fec 11 The company paid $940 cash for minor repairs to the company's computer. 16 The The company paid the full amount due to Harris Office Products, consisting of amounts created on December l15 (of $1,190) and March 8. 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,960 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,108 cost for $2,410 on credit to IFM Company, invoice dated company received $5,360 cash from Dream, Inc., for computing services provided. 19 March 30. 31 The company reimbursed Santana Rey for business automobile mileage (700 miles at $0.32 per mile). 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 $2,125. b. Three more months have expired since the company purchased its annual insurance policy at a $2,760 cost for 12 months of coverage. c. Lyn Addie has not been paid for seven days of work at the rate of $165 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $865. e. Depreciation on the computer equipment for January 1 through March 31 is $1,160. f. Depreciation on the office equipment for January 1 through March 31 is $290. g. The March 31 amount of merchandise inventory still available totals $564. 3. Prepare a partial work sheet consisting of the first six columns that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. BUSINESS SOLUTIONS Partial Work Sheet March 31, 2018 Unadjusted Trial Balance Adjusted Trial Balance Adjustments No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. 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 301 S. Rey, Capital 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 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 Totals Santana Rey created Business Solutions on October 1, 2017. 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, 2017. 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. No. Account Title Debit Credit 101 Cash $48,472 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 3,090 106.4 IFM Co. 106.5 Liu Corp. 0. 106.6 Gomez Co. 106.7 Delta Co. 2,838 106.8 KC, Inc. 0. 106.9 Dream, Inc. 119 Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital s. 126 610 128 2,070 131 865 8,120 $ 163 164 290 167 20,400 168 1,160 1,190 201 210 660 236 1,380 301 81,785 S. Rey, Withdrawals Computer services revenue Sales 302 403 413 414 Sales returns and allowances 415 Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense 502 612 613 623 637 640 Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 652 655 676 677 684 4 The company paid cash to Lyn Addie for five days' work at the rate of $165 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. 7 The company purchased $6,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,838 cash from Gomez Co. as full payment on its account. company completed a five-day project for Alex's Engineering Co. and billed it $5,470, which is the total price of $6,850 less the advance payment of $1,380. 13 The company sold merchandise with a retail value of $4,100 and a cost of $3,380 to Liu Corp., invoice dated January 13. The company paid $630 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,120 cash from Delta Co. for computer services provided. The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 Liu Corp. returned $600 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $320 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products in cost of goods sold.) 22 The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise. Jan. 11 The 15 17 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $486. 26 The company purchased $9,600 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 $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in Feb. the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company February 23. sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The company reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $940 cash for minor repairs to the company's computer. 16 The company received $5,360 cash from Dream, Inc., for computing services provided. 10 mhe company naid the Mar. due to Harrie nFfine Drnduste coneieting of amAunte ereatad on destination, invoice dated January 26. 26 The company sold merchandise with a $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice Feb. reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). Mar. dated March 8. received the balance due from Delta Co. for merchandise sold on February 23. 9 The company fec 11 The company paid $940 cash for minor repairs to the company's computer. 16 The The company paid the full amount due to Harris Office Products, consisting of amounts created on December l15 (of $1,190) and March 8. 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,960 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,108 cost for $2,410 on credit to IFM Company, invoice dated company received $5,360 cash from Dream, Inc., for computing services provided. 19 March 30. 31 The company reimbursed Santana Rey for business automobile mileage (700 miles at $0.32 per mile). 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 $2,125. b. Three more months have expired since the company purchased its annual insurance policy at a $2,760 cost for 12 months of coverage. c. Lyn Addie has not been paid for seven days of work at the rate of $165 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $865. e. Depreciation on the computer equipment for January 1 through March 31 is $1,160. f. Depreciation on the office equipment for January 1 through March 31 is $290. g. The March 31 amount of merchandise inventory still available totals $564. 3. Prepare a partial work sheet consisting of the first six columns that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. BUSINESS SOLUTIONS Partial Work Sheet March 31, 2018 Unadjusted Trial Balance Adjusted Trial Balance Adjustments No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. 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 301 S. Rey, Capital 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 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 Totals Santana Rey created Business Solutions on October 1, 2017. 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, 2017. 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. No. Account Title Debit Credit 101 Cash $48,472 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 3,090 106.4 IFM Co. 106.5 Liu Corp. 0. 106.6 Gomez Co. 106.7 Delta Co. 2,838 106.8 KC, Inc. 0. 106.9 Dream, Inc. 119 Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital s. 126 610 128 2,070 131 865 8,120 $ 163 164 290 167 20,400 168 1,160 1,190 201 210 660 236 1,380 301 81,785 S. Rey, Withdrawals Computer services revenue Sales 302 403 413 414 Sales returns and allowances 415 Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense 502 612 613 623 637 640 Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 652 655 676 677 684 4 The company paid cash to Lyn Addie for five days' work at the rate of $165 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. 7 The company purchased $6,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,838 cash from Gomez Co. as full payment on its account. company completed a five-day project for Alex's Engineering Co. and billed it $5,470, which is the total price of $6,850 less the advance payment of $1,380. 13 The company sold merchandise with a retail value of $4,100 and a cost of $3,380 to Liu Corp., invoice dated January 13. The company paid $630 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,120 cash from Delta Co. for computer services provided. The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 Liu Corp. returned $600 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $320 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products in cost of goods sold.) 22 The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise. Jan. 11 The 15 17 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $486. 26 The company purchased $9,600 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 $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in Feb. the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company February 23. sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The company reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $940 cash for minor repairs to the company's computer. 16 The company received $5,360 cash from Dream, Inc., for computing services provided. 10 mhe company naid the Mar. due to Harrie nFfine Drnduste coneieting of amAunte ereatad on destination, invoice dated January 26. 26 The company sold merchandise with a $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice Feb. reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). Mar. dated March 8. received the balance due from Delta Co. for merchandise sold on February 23. 9 The company fec 11 The company paid $940 cash for minor repairs to the company's computer. 16 The The company paid the full amount due to Harris Office Products, consisting of amounts created on December l15 (of $1,190) and March 8. 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,960 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,108 cost for $2,410 on credit to IFM Company, invoice dated company received $5,360 cash from Dream, Inc., for computing services provided. 19 March 30. 31 The company reimbursed Santana Rey for business automobile mileage (700 miles at $0.32 per mile). 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 $2,125. b. Three more months have expired since the company purchased its annual insurance policy at a $2,760 cost for 12 months of coverage. c. Lyn Addie has not been paid for seven days of work at the rate of $165 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $865. e. Depreciation on the computer equipment for January 1 through March 31 is $1,160. f. Depreciation on the office equipment for January 1 through March 31 is $290. g. The March 31 amount of merchandise inventory still available totals $564. 3. Prepare a partial work sheet consisting of the first six columns that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. BUSINESS SOLUTIONS Partial Work Sheet March 31, 2018 Unadjusted Trial Balance Adjusted Trial Balance Adjustments No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. 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 301 S. Rey, Capital 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 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 Totals Santana Rey created Business Solutions on October 1, 2017. 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, 2017. 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. No. Account Title Debit Credit 101 Cash $48,472 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 3,090 106.4 IFM Co. 106.5 Liu Corp. 0. 106.6 Gomez Co. 106.7 Delta Co. 2,838 106.8 KC, Inc. 0. 106.9 Dream, Inc. 119 Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue S. Rey, Capital s. 126 610 128 2,070 131 865 8,120 $ 163 164 290 167 20,400 168 1,160 1,190 201 210 660 236 1,380 301 81,785 S. Rey, Withdrawals Computer services revenue Sales 302 403 413 414 Sales returns and allowances 415 Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense 502 612 613 623 637 640 Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 652 655 676 677 684 4 The company paid cash to Lyn Addie for five days' work at the rate of $165 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. 7 The company purchased $6,900 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,838 cash from Gomez Co. as full payment on its account. company completed a five-day project for Alex's Engineering Co. and billed it $5,470, which is the total price of $6,850 less the advance payment of $1,380. 13 The company sold merchandise with a retail value of $4,100 and a cost of $3,380 to Liu Corp., invoice dated January 13. The company paid $630 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,120 cash from Delta Co. for computer services provided. The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 Liu Corp. returned $600 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $320 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products in cost of goods sold.) 22 The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise. Jan. 11 The 15 17 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $486. 26 The company purchased $9,600 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 $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in Feb. the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company February 23. sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The company reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $940 cash for minor repairs to the company's computer. 16 The company received $5,360 cash from Dream, Inc., for computing services provided. 10 mhe company naid the Mar. due to Harrie nFfine Drnduste coneieting of amAunte ereatad on destination, invoice dated January 26. 26 The company sold merchandise with a $4,490 cost for $5,840 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. 1 The company paid $2,595 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 amount in the credit memorandum. 5 The company paid $590 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 Santana Rey withdrew $4,760 cash from the company for personal use. 23 The company sold merchandise with a $2,640 cost for $3,250 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The 8 The company purchased $2,770 of computer supplies from Harris Office Products on credit, invoice Feb. reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile). Mar. dated March 8. received the balance due from Delta Co. for merchandise sold on February 23. 9 The company fec 11 The company paid $940 cash for minor repairs to the company's computer. 16 The The company paid the full amount due to Harris Office Products, consisting of amounts created on December l15 (of $1,190) and March 8. 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,960 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,108 cost for $2,410 on credit to IFM Company, invoice dated company received $5,360 cash from Dream, Inc., for computing services provided. 19 March 30. 31 The company reimbursed Santana Rey for business automobile mileage (700 miles at $0.32 per mile). 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 $2,125. b. Three more months have expired since the company purchased its annual insurance policy at a $2,760 cost for 12 months of coverage. c. Lyn Addie has not been paid for seven days of work at the rate of $165 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $865. e. Depreciation on the computer equipment for January 1 through March 31 is $1,160. f. Depreciation on the office equipment for January 1 through March 31 is $290. g. The March 31 amount of merchandise inventory still available totals $564. 3. Prepare a partial work sheet consisting of the first six columns that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. BUSINESS SOLUTIONS Partial Work Sheet March 31, 2018 Unadjusted Trial Balance Adjusted Trial Balance Adjustments No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. 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 301 S. Rey, Capital 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 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 Totals

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