Required information [The following information applies to the questions displayed below.] Santana Rey created Business Solutions...

Credit Business Solutions Journal entries Date Account 4-Jan Wages Payable Wages expense Cash Debit $ $ Calculation =165*4 660 165 825 $ 24,800 5-Jan Cash Common stock $ 24,800 $ 6,200 7-Jan Merchandise Inventory Accounts Payable $ 6,200 $ 2,778 9-Jan Cash Gomez Co $ 2,778 11-Jan Unearned computer services revenue Alex's Engineering Co Computer services revenue $ $ 1,470 5,300 $ 6,770 $ 4,800 $ 4,800 13-Jan Liu Co Sales Cost of goods sold Merchandise Inventory $ 3,460 $ 3,460 $ 710 15-Jan Merchandise Inventory Cash $ 710 $ 4,110 16-Jan Cash Computer services revenue $ 4,110 $ 6,200 17-Jan Accounts Payable Cash Merchandise Inventory $ $ 6,138 62 =6,200*1% $ 600 20-Jan Sales returns and allowances Liu Co $ 600 22-Jan Cash Sales discounts Liu Co $ $ 4,158 42 -4,200*1% 4,200 =4,800-600 $ $ 501 =496/99 100 24-Jan Accounts Payable Merchandise Inventory $ 501 $ 9,100 26-Jan Merchandise Inventory Accounts Payable $ 9,100 $ 5,980 $ 5,980 26-Jan KC. Inc. Sales Cost of goods sold Merchandise Inventory $ 4,620 $ 4,620 $ 1,650 =165*10 $ 1,650 31-Jan Wages expense Cash Feb 1-Feb Prepaid rent Cash $ 2,535 $ 2,535 $ 8,599 3-Feb Accounts Payable Cash Merchandise Inventory $ $ =9,100-501 8,513 86 +8,599*1% $ 490 5-Feb Advertising expense Cash $ 490 $ 5,300 11-Feb Cash Alex's Engineering Co $ 5,300 $ 4,780 15-Feb Dividends Cash $ 4,780 $ 3,380 $ 3,380 23-Feb Delta Co Sales Cost of goods sold Merchandise Inventory $ 2,580 $ 2,580 $ 1,320 =165*8 26-Feb Wages expense Cash $ 1,320 $ 64 $ 64 27-Feb Mileage expense Cash March 8-Mar Computer supplies Accounts Payable $ 2,920 $ 2,920 $ 3,380 9-Mar Cash Delta Co $ 3,380 $ 800 11-Mar Reapirs expense - Computer Cash $ 800 $ 5,390 16-Mar Cash Computer services revenue $ 5,390 $ 4,030 =1,110+2,920 19-Mar Accounts Payable Cash $ 4,030 $ 9,167 24-Mar Easy Leasing Computer services revenue $ 9,167 $ 2,880 $ 2,880 25-Mar Wildcat Services Sales Cost of goods sold Merchandise Inventory $ 2,132 $ 2,132 $ 2,380 $ 2,380 30-Mar IFM CO Sales Cost of goods sold Merchandise Inventory $ 1,238 $ 1,238 31-Mar Mileage expense $ 224 Cash $ 224

Adjusting entries 31-Mar Computer supplies expense Computer supplies $ 1,655 =750+2,920-2,015 $ 1,655 $ 681 31-Mar Insurance expense Prepaid Insurance $ 681 $ 1,155 =165*7 31-Mar Wages expense Wages Payable $ 1,155 $ 2,535 31-Mar Rent expense Prepaid rent $ 2,535 $ 1,170 31-Mar Depreciation expense - Computer equipment Accumulated Depreciation - Computer equipment $ 1,170 $ 400 31-Mar Depreciation expense - Office equipment Accumulated Depreciation - Office equipment $ 400 $ 657 31-Mar Cost of goods sold Merchandise Inventory $ =1,331-674 657 Unadj Bal - 674

Credit Date Debit Date Credit Wildcat Services - AR Op bal $ .

25-Mar $ 2,880 Date Debit Date Easy Leasing - AR Op bal $ . 24-Mar $ 9,167 Business Solutions Ledger accounts Date Debit Date Credit Date Debit Date Credit Cash Alex's Engineering Co-AR Op bal $ 43,512 4-Jan $ 825 Op bal $ . 5-Jan $ 24,800 15-Jan $ 710 11-Jan $ 5,300 11-Feb $ 5,300 9. Jan $ 2,778 17. Jan $ 6.138 16-Jan $ 4.110 31-Jan $ 1,650 22-Jan $ 4,158 1-Feb $ 2,535 11-Feb $ 5,300 3-Feb $ 8,513 9-Mar $ 3,380 5-Feb $ 490 16-Mar $ 5,390 15.

Feb $ 4,780 26-Feb $ 1,320 27-Feb 64 11-Mar $ 800 19-Mar $ 4,030 31-Mar $ 224 Bal $ Bal $ 66,349 IFM CO-AR 3,080 2,380 Bal. $ . Llu CO-AR Op bal $ - 13-Jan $ 4,800 20-Jan $ 22-Jan $ 2,880 Gomez Co-AR 2,773 9 -Jan $ 2,778 Bal $ 9,167 Delta CO-AR Op bal $ . 23-Feb $ 3,380 9-Mar $ 3,380 Op bal Op bal $ 30-Mar $ $ 600 4,200 Bal $ Bal. $ 5,460 KC.

Inc. - AR .. 5,980 . Dream Inc. -AR - Bal S .

Computer supplies Op bal $ 750 8-Mar $ 2,920 Op bal $ Op bal $ 26-Jan $ Bal. $ . Merchandise Inventory Op bal $ . 7-Jan $ 6,200 13-Jan $ 3,460 15-Jan $ 710 17-Jan $ 62 26-Jan $ 9,100 26-Jan $ 4,620 24-Jan $ 501 3-Feb $ 86 23-Feb $ 2,580 25-Mar $ 2,132 30-Mar $ 1,238 Bal $ Bal. Bal.

5,980 Office Equip 8,120 $ . Accum. Depr.- Office Equip Op bal $ $ 1,331 Computer Equipment $ 22,000 Bal. $ 3,670 Accum. Depr.

- Computer Equip Op bal $ 1,170 Op bal $ 400 Op bal Bal $ 400 $ 1,170 $ 3,120 Prepaid Insurance $ 2,043 Bal. Prepaid rent 845 2.535 Bal. Wages Payable 4-Jan $ 650 Op bal Op bal Op bal 1-Feb Bal. $ 22,000 Accounts Payable 17-Jan $ 5,200 Op bal $ 1,110 24-Jan $ 501 7-Jan $ 6,200 3-Feb $ 8,599 26-Jan $ 9,100 19-Mar $ 4,030 8-Mar $ 2,920 $ $ $ 650 Bal. $ - $ .

Bal 2013 Unearned computer services revenue 11-Jan $ 1,470 Op bal $ 1,470 $ 3,330 Common stock Op bal $ 73,858 5-Jan $ 24,800 Bal. Retained eamings Op bal Bal. Dividends 15-Feb $ 4,780 $ 9,460 98,658 Bal. $ 9,460 Sales returns and allowances 20-Jan $ 500 Bal. S .

Computer services revenue 11-Jan $ 6,770 15-Jan $ 4.110 16-Mar $ 5,390 24-Mar $ 9,167 Bal. $ 4,780 Sales discounts 22-Jan $ 42 Bal. $ sales 13-Jan $ 26-Jan $ 23-Feb $ 25-Mar $ 30-Mar $ 4,800 5,980 3,380 2,890 2,380 $ 25,437 Bal. $ 19,420 Depreciation expense - Office equip Bal. $ 600 Depreciation expense-Computer equip Bal.

Cost of goods sold 13-Jan $ 3,460 26-Jan $ 4,620 23-Feb $ 2,580 25-Mar $ 2,132 30-Mar $ 1.238 Bal. $ 42 Wages expense 4-Jan $ 165 31-Jan $ 1,650 25-Feb $ 1,320 Bal Bal. $ - $ 14,030 Insurance expense Rent expense Computer supplies expens Bal. $ ,135 Advertising expense 5-Feb $ 490 Bal. Bal.

$ 490 $ Miscellaneous expense Bal. $ Mileage expense 27-Feb $ 31 Mar $ 224 Bal. S Reapirs expense - Computer 11- Mar $ 800 Bal $ 283 Bal. $ . Bal.

$ 300

Business Solutions As of Mar 31, 2020 Unadjusted TB Debit Credit 66,349 As of Mar 31, 2020 Adjustments Debit Credit As of Mar 31, 2020 Adjusted TB Debit Credit 66,349 2,880 9,167 5,460 2,880 9,167 5,460 5,980 5,980 657 1,655 1,331 3,670 2,043 3,380 8,120 681 674 2,015 1,362 845 8,120 2,535 400 400 800 22,000 22,000 1,170 1,170 2,340 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 1,155 1,155 98,658 9,460 98,658 9,460 4,780 4,780 25,437 19,420 25,437 19,420 600 42 14,030 657 3,135 400 1,170 1,155 681 2,535 1,655 600 42 14,687 400 1,170 4,290 681 2,535 1,655 490 288 490 288 800 154,545 800 157,270 154,545 8 ,253 8,253 157,270

25,437 Business Solutions Income statement For three months ended March 31, 2020 Computer services revenue Sales Less: Sales returns and allowances Sales discounts Net Sales Total Revenues 19,420 (600) (42) 18,778 44,215 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 14,687 400 1,170 4,290 681 2,535 1,655 490 288 800 26,996 17,219 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 9,460 17,219 (4,780) 21,899

25,437 19,420 (600) (42) 18,778 44,215 14,687 29,528 Business Solutions Multi-step Income Statement For three months ended March 31, 2020 Computer services revenue Sales Less: Sales returns and allowances Sales discounts Net Sales Gross Sales Cost of goods sold Gross Profit Operating expenses Selling expenses Wages expense Mileage expense Advertising expense Total Selling expenses General & Administrative expenses Depreciation expense - Office equipment Depreciation expense - Computer equipment Insurance expense Rent expense Computer supplies expense Reapirs expense - Computer Total General & Administrative expenses Total Operating expenses Net Profit 4,290 288 490 5,068 400 1,170 681 2,535 1,655 800 7,241 12,309 17,219

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 66,349 23,487 674 2,015 1,362 845 94,732 7,320 Plant Assets Office equipment Accumulated Depreciation - Office equipment Computer equipment Accumulated Depreciation - Computer equipment Total Plant Assets Total Assets 8,120 (800) 22,000 (2,340) 19,660 26,980 121,712 Liabilities & Stockholders Equity Current Liabilities Wages Payable 1,155 Stockholders Equity Common Stock Retained earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 98,658 21,899 120,557 121,712