4. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2022. (a) Use a single-step format List all expenses without differentiating between selling expenses and general and administrative expenses. (b) Use a multiple-step format that begins with gross sales (service revenues plus gross product sales) and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Categorize the following accounts as selling expenses: Wages Expense, Mileage Expense, and Advertising Expense. Categorize the remaining expenses general and administrative. Complete this question by entering your onswers in the tabs below. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2022. (a) Use a single-step format. List all expenses without differentiating between selling expenses and general and administrative expenses. 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. 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 avallable totals $2,055. b. Prepaid Insurance coverage of $600 expired during this three-month period c. Lyn Addie has not been paid for seven days of work at the rate of $235 per day. d. Prepaid rent of $2,505 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,220. f. Depreciation on the office equipment for January 1 through March 31 is $290. g. The March 31 amount of merchandise inventory still avallable totals $674. Danuary 4 The company paid cash to tyn Addie for five days' work at the rate of $235 per doy. Four of the five doys relate to wages payable that were accrued in the prior year. January 5 Santana Rey invested an additional $24,000 cash in the company in exchange for more common 5 tock. January 7 The company purchased $6,900 of merchandise from Kansas Corporation with terms of 1/10, n/30, foB shipping point, invoice dated 2anuary 7. January 9 The company received $2,698 cash fron Gomez Coepany as full payment on its account. January 11 The company completed a flve-day project for Alex's Engineering Company and billed it $5,330, which is the total price of $6,780 less the advance paynent of $1,450. The company debited Unearned Computer Services Revenue for $1,450. January 13 The company sold merchandise with a retail value of $4,409 and a cost of $3,460 to Liu Corporation, invoice dated January 13. January 15 The company pald $620 cash for freight charges on the merchandise purchased on January 7 . 3 anuary 16 The company recelved 54,15 e cash from Delta Company for conputer services provided. January 17 The company paid Kansas Corporation for the involce dated January 7 , net of the discount. January 20 The company gave a price reduction (allowance) of $590 to Liu Corporation and credited tiu's accounts receivable for that anount. 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 involce cost, net of the discount, was $476. January 26 The company purchased $9,900 of merchandise from Kansas Corporation with terns of 1/10, n/30, foe destination, invoice dated 2 anuary 26. January 26 The compacy sold merchandise with a $4,510 cost for $5,930 on credit to KC, Incorporated, involce dated January 26 . January 31 The company paid cash to Lyn Addle for 10 days' work at $235 per day. February 1 The compony paid $2,505 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 $476 credit from merchandise returned on January 24. February 5 The company paid $410 cash to Facebook for an advertisenent to appear on February 5 only. February 11 The company recelved the balance dur from Alex's Engineering Conpany for fees billed on January 11. february is The company pald a $4,790 cash dividend. february 23 The company sold merchandise with a $2,630 cost for $3,330 on credit to Delta conpany, invoice dated February 23. February 26 The company paid cash to tyn Addie for eight days' work at $235 per day. February 27 The company reinbursed Santana Rey $320 cash for business autooobile nileage. The coepany reconded the reimbursement as Maleage Expense.- March a The company purchased $2,770 of computer supplies fron Harris office Products on credit with terns of n/30, FOB destination, involce dated Harch 8. March 9 The company received the balance due from Delta conpany for merchandise sold on February 23. March 11 The company poid $790 cash for ainor repairs to the company's conputer. March 16 The company received $5,260 cash from Drean, Incorporated, for computing services prouided. March 19 The company pald the full amount die of $4,030 to liarris office Products, consisting of anounts created on Decenber 15 (of $1,260 ) and March 8 . Harch 24 The company billed Easy Leasing for $9,127 of conputing services provided. March 25 The company sold merchandise with =$2,022 cost for $2,800 on credit to uildcat 5ervices, involce dated. March 25. March 30 The company sold merchandise with a $1,238 cost for $2,350 on credit to IFM Company, imvolce doted March 3e. March 31 The company reimbursed Santana Aley \$2aa cash for business automobile mileage. The company recorded the reimbursenent as "Mileage Expense