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

Santana Rey created Business Solutions on October 1, 2021. 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, 2021. 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.

Number	Account Title	Debit	Credit
101	Cash	$ 48,372
106.1	Alexs Engineering Company	0
106.2	Wildcat Services	0
106.3	Easy Leasing	0
106.4	IFM Company	3,000
106.5	Liu Corporation	0
106.6	Gomez Company	2,668
106.7	Delta Company	0
106.8	KC, Incorporated	0
106.9	Dream, Incorporated	0
119	Merchandise inventory	0
126	Computer supplies	580
128	Prepaid insurance	1,665
131	Prepaid rent	825
163	Office equipment	8,000
164	Accumulated depreciationOffice equipment		$ 400
167	Computer equipment	20,000
168	Accumulated depreciationComputer equipment		1,250
201	Accounts payable		1,100
210	Wages payable		500
236	Unearned computer services revenue		1,500
301	Santana Rey, Capital		80,360
302	Santana 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, Santana 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 (Numbers 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the companys new merchandising activities. Its transactions for January through March follow.

January 4	The company paid cash to Lyn Addie for five days work at the rate of $125 per day. Four of the five days relate to wages payable that were accrued in the prior year.
January 5	Santana Rey invested an additional $25,000 cash in the company.
January 7	The company purchased $5,800 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.
January 9	The company received $2,668 cash from Gomez Company as full payment on its account.
January 11	The company completed a five-day project for Alexs Engineering Company and billed it $5,500, which is the total price of $7,000 less the advance payment of $1,500. The company debited Unearned Computer Services Revenue for $1,500.
January 13	The company sold merchandise with a retail value of $5,200 and a cost of $3,560 to Liu Corporation, invoice dated January 13.
January 15	The company paid $600 cash for freight charges on the merchandise purchased on January 7.
January 16	The company received $4,000 cash from Delta Company for computer services provided.
January 17	The company paid Kansas Corporation for the invoice dated January 7, net of the discount.
January 20	The company gave a price reduction (allowance) of $500 to Liu Corporation and credited Liu's accounts receivable for that amount.
January 22	The company received the balance due from Liu Corporation, net of the discount and the allowance.
January 24	The company returned defective merchandise to Kansas Corporation and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $496.
January 26	The company purchased $9,000 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB destination, invoice dated January 26.
January 26	The company sold merchandise with a $4,640 cost for $5,800 on credit to KC, Incorporated, invoice dated January 26.
January 31	The company paid cash to Lyn Addie for 10 days work at $125 per day.
February 1	The company paid $2,475 cash to Hillside Mall for another three months rent in advance.
February 3	The company paid Kansas Corporation for the balance due, net of the cash discount, less the $496 credit from merchandise returned on January 24.
February 5	The company paid $600 cash to Facebook for an advertisement to appear on February 5 only.
February 11	The company received the balance due from Alexs Engineering Company for fees billed on January 11.
February 15	Santana Rey withdrew $4,800 cash from the company for personal use.
February 23	The company sold merchandise with a $2,660 cost for $3,220 on credit to Delta Company, invoice dated February 23.
February 26	The company paid cash to Lyn Addie for eight days work at $125 per day.
February 27	The company reimbursed Santana Rey $192 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense."
March 8	The company purchased $2,730 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8.
March 9	The company received the balance due from Delta Company for merchandise sold on February 23.
March 11	The company paid $960 cash for minor repairs to the companys computer.
March 16	The company received $5,260 cash from Dream, Incorporated, for computing services provided.
March 19	The company paid the full amount due of $3,830 to Harris Office Products, consisting of amounts created on December 15 (of $1,100) and March 8.
March 24	The company billed Easy Leasing for $9,047 of computing services provided.
March 25	The company sold merchandise with a $2,002 cost for $2,800 on credit to Wildcat Services, invoice dated March 25.
March 30	The company sold merchandise with a $1,048 cost for $2,220 on credit to IFM Company, invoice dated March 30.
March 31	The company reimbursed Santana Rey $128 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense."

The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation.

- The March 31 amount of computer supplies still available totals $2,005.

- Prepaid Insurance coverage of $555 expired during this three-month period.

- Lyn Addie has not been paid for seven days of work at the rate of $125 per day.

- Prepaid rent of $2,475 expired during this three-month period.

- Depreciation on the computer equipment for January 1 through March 31 is $1,250.

- Depreciation on the office equipment for January 1 through March 31 is $400.

- The March 31 amount of merchandise inventory still available totals $704.

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

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