4. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2018. Use a single- step format. List all expenses without differentiating between selling expenses and general and administrative expenses. BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2018 Revenues Unearned computer services revenue Net sales Total revenues Expenses Cost of goods sold Wages expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Depreciation expense-Office equipment Depreciation expenseComputer equipment Insurance expense Rent expense Computer supplies expense Total expenses The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation: a. The March 31 amount of computer supplies still available totals $2,135. b. Three more months have expired since the company purchased its annual insurance policy at a $2,688 cost for 12 months of coverage. c. Lyn Addie has not been paid for seven days of work at the rate of $215 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $905. e. Depreciation on the computer equipment for January 1 through March 31 is $1,210. f. Depreciation on the office equipment for January 1 through March 31 is $290. g. The March 31 amount of merchandise inventory still available totals $524. apare an income statement (from the adiusted trial balance in part 3) for the three months ended March 31, 2018. Use a single- Jan. 4 The company paid cash to Lyn Adale for five days WOPR at the rate of $215 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $23,500 cash in the company in exchange for more common stock. 7 The company purchased $7,800 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,788 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 $5,340, which is the total price of $6,690 less the advance payment of $1,350. 13 The company sold merchandise with a retail value of $4,800 and a cost of $3,480 to Liu Corp., invoice dated January 13. 15 The company paid $670 cash for freight charges on the merchandise purchased on January 7. mha conany received $4.170 cash from Delta Co. for computer services providea. 17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 Liu Corp. returned $800 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $270 cost, is discarded. The policy 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 $486. 26 The company purchased $9,100 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 $4,490 cost for $5,850 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $215 per day. 1 The company paid $2,715 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 $486 amount in the credit memorandum. 5 The company paid $450 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 The company paid $4,670 cash in dividends. 23 The company sold merchandise with a $2,570 cost for $3,290 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $215 per day. 27 The company reimbursed Santana Rey for business automobile mileage (1,100 miles at $0.32 per mile). plies 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 $800 cash for minor repairs to the company's computer. 16 The company received $5,300 cash from Dream, Inc., f h 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 $1,290) and March 8. 24 The company billed Easy Leasing for $9,057 of computing services provided. 25 The company sold merchandise with a $2,012 cost for $2,990 on credit to Wildcat Services, invoice dated March 25. Feb. Requireu NUDLIUI [The following information applies to the questions displayed below.) 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. Credit Debit $48,502 3,000 una OOOOOOO 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 Corp. 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 Coot of rando cold 8,110 $ 290 20,600 1,210 1,290 860 1,350 74,331 7,200 4. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2018. Use a single- step format. List all expenses without differentiating between selling expenses and general and administrative expenses. BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2018 Revenues Unearned computer services revenue Net sales Total revenues Expenses Cost of goods sold Wages expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer Depreciation expense-Office equipment Depreciation expenseComputer equipment Insurance expense Rent expense Computer supplies expense Total expenses The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation: a. The March 31 amount of computer supplies still available totals $2,135. b. Three more months have expired since the company purchased its annual insurance policy at a $2,688 cost for 12 months of coverage. c. Lyn Addie has not been paid for seven days of work at the rate of $215 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $905. e. Depreciation on the computer equipment for January 1 through March 31 is $1,210. f. Depreciation on the office equipment for January 1 through March 31 is $290. g. The March 31 amount of merchandise inventory still available totals $524. apare an income statement (from the adiusted trial balance in part 3) for the three months ended March 31, 2018. Use a single- Jan. 4 The company paid cash to Lyn Adale for five days WOPR at the rate of $215 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $23,500 cash in the company in exchange for more common stock. 7 The company purchased $7,800 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,788 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 $5,340, which is the total price of $6,690 less the advance payment of $1,350. 13 The company sold merchandise with a retail value of $4,800 and a cost of $3,480 to Liu Corp., invoice dated January 13. 15 The company paid $670 cash for freight charges on the merchandise purchased on January 7. mha conany received $4.170 cash from Delta Co. for computer services providea. 17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 Liu Corp. returned $800 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $270 cost, is discarded. The policy 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 $486. 26 The company purchased $9,100 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 $4,490 cost for $5,850 on credit to KC, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $215 per day. 1 The company paid $2,715 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 $486 amount in the credit memorandum. 5 The company paid $450 cash to the local newspaper for an advertising insert in today's paper. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 The company paid $4,670 cash in dividends. 23 The company sold merchandise with a $2,570 cost for $3,290 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $215 per day. 27 The company reimbursed Santana Rey for business automobile mileage (1,100 miles at $0.32 per mile). plies 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 $800 cash for minor repairs to the company's computer. 16 The company received $5,300 cash from Dream, Inc., f h 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 $1,290) and March 8. 24 The company billed Easy Leasing for $9,057 of computing services provided. 25 The company sold merchandise with a $2,012 cost for $2,990 on credit to Wildcat Services, invoice dated March 25. Feb. Requireu NUDLIUI [The following information applies to the questions displayed below.) 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. Credit Debit $48,502 3,000 una OOOOOOO 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 Corp. 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 Coot of rando cold 8,110 $ 290 20,600 1,210 1,290 860 1,350 74,331 7,200