In Economics / Senior High School | 2025-04-19

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 $ 48,492 106.1 Alex’s Engineering Company 0 106.2 Wildcat Services 0 106.3 Easy Leasing 0 106.4 IFM Company 3,060 106.5 Liu Corporation 0 106.6 Gomez Company 2,748 106.7 Delta Company 0 106.8 KC, Incorporated 0 106.9 Dream, Incorporated 0 119 Merchandise inventory 0 126 Computer supplies 620 128 Prepaid insurance 2,097 131 Prepaid rent 885 163 Office equipment 8,150 164 Accumulated depreciation—Office equipment $ 370 167 Computer equipment 20,300 168 Accumulated depreciation—Computer equipment 1,220 201 Accounts payable 1,210 210 Wages payable 740 236 Unearned computer services revenue 1,390 301 Common stock 71,962 318 Retained earnings 9,460 319 Dividends 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 expense—Office equipment 0 613 Depreciation expense—Computer 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 expense—Computer 0

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