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	$	48,542
106.1	Alexs Engineering Co.		0
106.2	Wildcat Services		0
106.3	Easy Leasing		0
106.4	IFM Co.		3,130
106.5	Liu Corp.		0
106.6	Gomez Co.		2,778
106.7	Delta Co.		0
106.8	KC, Inc.		0
106.9	Dream, Inc.		0
119	Merchandise inventory		0
126	Computer supplies		600
128	Prepaid insurance		2,016
131	Prepaid rent		885
163	Office equipment		8,040
164	Accumulated depreciationOffice equipment				$	240
167	Computer equipment		21,500
168	Accumulated depreciationComputer equipment					1,100
201	Accounts payable					1,240
210	Wages payable					540
236	Unearned computer services revenue					1,320
301	S. Rey, Capital					83,051
302	S. Rey, Withdrawals		0
403	Computer services revenue					0
413	Sales					0
414	Sales returns and allowances		0
415	Sales discounts		0
502	Cost of goods sold		0
612	Depreciation expenseOffice equipment		0
613	Depreciation expenseComputer equipment		0
623	Wages expense		0
637	Insurance expense		0
640	Rent expense		0
652	Computer supplies expense		0
655	Advertising expense		0
676	Mileage expense		0
677	Miscellaneous expenses		0
684	Repairs expenseComputer		0

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 companys new merchandising activities. Also, Business Solutions does not use reversing entries and, therefore, all revenue and expense accounts have zero beginning balances as of January 1, 2018. Its transactions for January through March follow:

Jan.		4		The company paid cash to Lyn Addie for five days work at the rate of $135 per day. Four of the five days relate to wages payable that were accrued in the prior year.
		5		Santana Rey invested an additional $24,900 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 $2,778 cash from Gomez Co. as full payment on its account.
		11		The company completed a five-day project for Alexs Engineering Co. and billed it $5,320, which is the total price of $6,640 less the advance payment of $1,320.
		13		The company sold merchandise with a retail value of $4,400 and a cost of $3,470 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 $4,160 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		Liu Corp. returned $700 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $250 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.
		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 $496.
		26		The company purchased $9,700 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 $4,510 cost for $5,990 on credit to KC, Inc., invoice dated January 26.
		31		The company paid cash to Lyn Addie for 10 days work at $135 per day.
Feb.		1		The company paid $2,655 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 $496 amount in the credit memorandum.
		5		The company paid $440 cash to the local newspaper for an advertising insert in todays paper.
		11		The company received the balance due from Alexs Engineering Co. for fees billed on January 11.
		15		Santana Rey withdrew $4,640 cash from the company for personal use.
		23		The company sold merchandise with a $2,530 cost for $3,240 on credit to Delta Co., invoice dated February 23.
		26		The company paid cash to Lyn Addie for eight days work at $135 per day.
		27		The company reimbursed Santana Rey for business automobile mileage (800 miles at $0.32 per mile).
Mar.		8		The company purchased $2,910 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 $760 cash for minor repairs to the companys computer.
		16		The company received $5,410 cash from Dream, Inc., for computing services provided.
		19		The company paid the full amount due to Harris Office Products, consisting of amounts created on December 15 (of $1,240) and March 8.
		24		The company billed Easy Leasing for $9,067 of computing services provided.
		25		The company sold merchandise with a $2,142 cost for $2,860 on credit to Wildcat Services, invoice dated March 25.
		30		The company sold merchandise with a $1,188 cost for $2,240 on credit to IFM Company, invoice dated March 30.
		31		The company reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile).

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 $2,095.
2. Three more months have expired since the company purchased its annual insurance policy at a $2,688 cost for 12 months of coverage.
3. Lyn Addie has not been paid for seven days of work at the rate of $135 per day.
4. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $885.
5. Depreciation on the computer equipment for January 1 through March 31 is $1,100.
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 $644.

   * Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2018.

BUSINESS SOLUTIONS Balance Sheet March 31, 2018 Assets Current assets Total current assets 0 Plant assets Office Equipment, net 0 0 Computer equipment, net Total plant assets 0 Total assets $ 0 Liabilities Current liabilities Total current assets 0 Plant assets Office Equipment, net 0 Computer equipment, net Total plant assets 0 Total assets $ 0 Liabilities Current liabilities Equity Total liabilities and equity $