Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies to the questions displayed below] Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019. Santana Rey decided to add a fourth digit with a decimal point to the 106 account number that had been used for the single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts. 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 coepany paid cash to Lyn Addie for five days' work at the rate of $155 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $24,700 cash in the conpany in exchange for more connon stock. 7 The company purchased \$7,600 of merchandise from Kansas Corp. With terms of 1/10, n/30, F08 shipping point, invoice dated January 7. 9 The company received $2,878 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 $5,480, which is the total price of 56,810 less the advance payment of $1,330. The company debited Unearned computer Services Revenue for $1,330. 13 The company sold merchandise with a retail value of $4,400 and a cost of $3,540 to Liu Corp., invoice dated January 13. 15 The company paid $760 cash for freight charges on the merchandise purchased on January 7. 16 The coepany recelved $4,70 cash froe Delta Co. for computer services provided. 17 The conpany paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 The coepany gave a price reduction (allowance) of $400 to Liu Corp., and credited tiu'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 \$476. 26 The company purchased 59,500 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, involce dated January 26 . 26. The coepany sold merchandise with a $4,510 cost for $5,870 on credit to xC, Inc., Invoice dated January 26 . 31 The company paid cash to Lyn Addie for 10 days' work at $155 per day. Feb. 1 The company paid $2,685 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 $476 credit from merchandise returned on January 24 . 5 The company paid $410 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 perchandise with a $2,550 cost for $3,400 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $155 per day. 27 The company reimbursed Santana Rey $128 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased \$2,770 of coeputer 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 $809 cash for minor repairs to the company's computer. 16 The company recelved $5,278 cash from Dream, Inc., for conputing services provided. 19 The company paid the full amount due of $3,880 to Harris Office Products, consisting of amounts created on Decenber 15 (of $1,110 ) and March 8 . 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,072 cost for $2,990 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,098 cost for $2,350 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $64 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." The following additional facts are avallable for preparing adjustments on March 31 prior to financial statement preparation: a. The March 31 amount of computer supplies still available totals $2,005 b. Prepaid Insurance coverage of $636 expired during this 3 month period. c. Lyn Addie has not been paid for seven days of work at the rate of $155 per day. d. Prepaid rent of $2.685 expired during this 3 -month period e. Depreciation on the computer equipment for January 1 through March 31 is $1,210 1. Depreciation on the office equipment for January 1 through March 31 is $270 9. The March 31 amount of merchandise inventory still avalable totals $664 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3 ) for the three months ended March 31 , 2020 Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies to the questions displayed below] Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019. Santana Rey decided to add a fourth digit with a decimal point to the 106 account number that had been used for the single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts. 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 coepany paid cash to Lyn Addie for five days' work at the rate of $155 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $24,700 cash in the conpany in exchange for more connon stock. 7 The company purchased \$7,600 of merchandise from Kansas Corp. With terms of 1/10, n/30, F08 shipping point, invoice dated January 7. 9 The company received $2,878 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 $5,480, which is the total price of 56,810 less the advance payment of $1,330. The company debited Unearned computer Services Revenue for $1,330. 13 The company sold merchandise with a retail value of $4,400 and a cost of $3,540 to Liu Corp., invoice dated January 13. 15 The company paid $760 cash for freight charges on the merchandise purchased on January 7. 16 The coepany recelved $4,70 cash froe Delta Co. for computer services provided. 17 The conpany paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 The coepany gave a price reduction (allowance) of $400 to Liu Corp., and credited tiu'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 \$476. 26 The company purchased 59,500 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, involce dated January 26 . 26. The coepany sold merchandise with a $4,510 cost for $5,870 on credit to xC, Inc., Invoice dated January 26 . 31 The company paid cash to Lyn Addie for 10 days' work at $155 per day. Feb. 1 The company paid $2,685 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 $476 credit from merchandise returned on January 24 . 5 The company paid $410 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 perchandise with a $2,550 cost for $3,400 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $155 per day. 27 The company reimbursed Santana Rey $128 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased \$2,770 of coeputer 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 $809 cash for minor repairs to the company's computer. 16 The company recelved $5,278 cash from Dream, Inc., for conputing services provided. 19 The company paid the full amount due of $3,880 to Harris Office Products, consisting of amounts created on Decenber 15 (of $1,110 ) and March 8 . 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,072 cost for $2,990 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,098 cost for $2,350 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $64 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." The following additional facts are avallable for preparing adjustments on March 31 prior to financial statement preparation: a. The March 31 amount of computer supplies still available totals $2,005 b. Prepaid Insurance coverage of $636 expired during this 3 month period. c. Lyn Addie has not been paid for seven days of work at the rate of $155 per day. d. Prepaid rent of $2.685 expired during this 3 -month period e. Depreciation on the computer equipment for January 1 through March 31 is $1,210 1. Depreciation on the office equipment for January 1 through March 31 is $270 9. The March 31 amount of merchandise inventory still avalable totals $664 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3 ) for the three months ended March 31 , 2020