5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31, 2022.

Required information SP 4 Serlal Problem Buslness Solutlons (Algo) LO P1, P2, P3, P4 [The following information applies to the questions displayed 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 modlfied 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 Recelvable 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 avallable on consulting fees. Additional accounts (Numbers. 119,413,414,415, and 502) are added to its general ledger to accommodate the company's new merchandising activlties. Its transactions for January through March follow. January 4 The company paid cash to Lyn Addie for five days? work at the rate of $215 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 $23,700 cash in the conpany in exchange for nore connon stock. January 7 The company purchased $6,890 of nerchandise from Kansas Corporation with terms of 1/16, n/30, FOB shipping point, involice dated January 7. January 9 The company received $2,698 cash fron Gonez Company as full payment on its account. January 11 The conpany completed a five-day project for Alex's Engineering Conpany and billed it $5, 36e, which is the total price of $6,770 less the advance payment of $1,416. The company debited Unearned Computer Services Revenue for $1,410. January 13 The company sold merchandise with a retail value of $4,180 and a cost of $3,420 to Liu Corporation, invoice dated January 13. January 15 The conpany paid $670 cash for freight charges on the nerchandise purchased on January 7. January 16 The company received $4,640 cash from Delta Company for conputer 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 $700 to Liu Corporation and credited Liu"s accounts receivable for that amount. January 22 The conpany received the balance due fron Liu Corporation, net of the discount and the allowance. January 24 The conpany returned defective nerchandise to Kansas Corporation and accepted a credit against future purchases (debited accounts payable). The defective nerchandise invoice cost, net of the discount, was $476. January 26 The company purchased $9,890 of nerchandise from Kansas Corporation with terms of 1/10, n/30, FOB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,470 cost for $5,820 on credit to KC, Incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days' work at $215 per day. February 1 The conpany paid $2,715 cash to Hillside Ma11 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 fron merchandise returned on January 24. February 5 The company paid $510 cash to Facebook for an advertisement to appear on February 5 only. February 11 The company received the balance due fron Alex's Engineering Company for fees billed on January 11. February 15 The company paid a $4,790 cash dividend. February 23 The company sold merchandise with a $2,470 cost for $3,230 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $215 per day. February 27 The conpany reinbursed Santana Rey $224 cash for business autonobile nileage. The company recorded the reinbursement as "Mileage Expense." March 8 The conpany purchased $2,840 of computer supplies fron Harris office Products on credit with terms of n/39, FOB destination, invoice dated March 8. March 9 The conpany received the balance due fron Delta Company for merchandise sold on February 23. March 11 The conpany paid $930 cash for minor repairs to the conpany's computer. March 16 The conpany received $5,390 cash fron Dream, Incorporated, for conputing services provided. March 19 The conpany paid the full anount due of $4,670 to Harris office Products, consisting of anounts created on December 15 (of $1,239 ) and March 8. March 24 The company billed Easy Leasing for $9,237 of conputing services provided. March 25 The company sold merchandise with a $2,112 cost for $2,900 on credit to Wildcat Services, invoice dated March 25. March 30 The conpany sold merchandise with a $1,668 cost for $2,310 on credit to IFM Company, invoice dated March 30. March 31 The company reinbursed Santana Rey $96 cash for business autonobile mileage. The conpany recorded the reinbursement as "Mileage Expense." The following additional facts are avallable for preparing adjustments on March 31 prlor to financlal statement preparatlon. a. The March 31 amount of computer supplies stlll avallable totals $2165. b. Prepald insurance coverage of $654 explred during this three-month perlod. c. Lyn Addle has not been pald for seven days of work at the rate of $215 per day. d. Prepald rent of $2,715 explred during this three-month perlod. e. Depreclatlon on the computer equipment for January 1 through March 31 is $1,140. f. Depreclation on the office equlpment for January 1 through March 31 is $290. g. The March 31 amount of merchandise inventory still avallable totals $624. 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31,2022 5. Prepare a statement of retalned earnings (from the adjusted trial balance In part 3) for the three months ended March 31,2022