6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2 BUSINESS SOLUTIONS Balance Sheet March 31, 2018 Assets Current assets Total current assets C Plant assets Office Equipment, net 0 Computer equipment, net 0 Total plant assets 0 Total assets $ 0 Liabilities Current liabilities Equity 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2 BUSINESS SOLUTIONS Balance Sheet March 31, 2018 Assets Current assets Total current assets C Plant assets Office Equipment, net 0 Computer equipment, net 0 Total plant assets 0 Total assets $ 0 Liabilities Current liabilities Equity 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 epare an income statement (from the adiusted trial balance in part 3) for the three months ended March 31, 2018. Use a sinale- company paid cash $215 per day Lyn die for days rate OI the Iive 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. 16 The company received $4,170 cash from Delta Co. for computer services provided. 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 of Business Solutions is to leave the 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 Feb 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) 8 The company purchased $2,890 of computer supplies 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 ar. 11 The company paid $800 cash for minor repairs to the company's computer. 16 The company received $5,300 cash 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. No. Account Title Debit Credit 101 Cash $48,502 106.1 Alex's Engineering Co 0 106.2 Wildcat Services 0 106.3 Easy Leasing 106.4 IFM Co. 106.5 Liu Corp. 0 3,000 2,788 106.6 Gomez Co. 106.7 Delta Co 106.8 KC, Inc 106.9 Dream, Inc. 0 0 Merchandise inventory Computer supplies Prepaid insurance Prepaid rent office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue 0 119 126 610 128 2,016 905 131 163 8,110 290 164 167 20,600 168 1,210 1,290 201 210 860 236 1,350 74,331 7,200 307 Common stock Retained earnings 318 Dividends 319 403 Computer services revenue 0 413 Sales 414 Sales returns and allowances C Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment 0 415 502 612 613 623 0 Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense 637 640 652 0 655 676 Mileage expense Miscellaneous expenses Repairs expense-Computer 677 684 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2 BUSINESS SOLUTIONS Balance Sheet March 31, 2018 Assets Current assets Total current assets C Plant assets Office Equipment, net 0 Computer equipment, net 0 Total plant assets 0 Total assets $ 0 Liabilities Current liabilities Equity 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2 BUSINESS SOLUTIONS Balance Sheet March 31, 2018 Assets Current assets Total current assets C Plant assets Office Equipment, net 0 Computer equipment, net 0 Total plant assets 0 Total assets $ 0 Liabilities Current liabilities Equity 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 epare an income statement (from the adiusted trial balance in part 3) for the three months ended March 31, 2018. Use a sinale- company paid cash $215 per day Lyn die for days rate OI the Iive 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. 16 The company received $4,170 cash from Delta Co. for computer services provided. 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 of Business Solutions is to leave the 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 Feb 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) 8 The company purchased $2,890 of computer supplies 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 ar. 11 The company paid $800 cash for minor repairs to the company's computer. 16 The company received $5,300 cash 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. No. Account Title Debit Credit 101 Cash $48,502 106.1 Alex's Engineering Co 0 106.2 Wildcat Services 0 106.3 Easy Leasing 106.4 IFM Co. 106.5 Liu Corp. 0 3,000 2,788 106.6 Gomez Co. 106.7 Delta Co 106.8 KC, Inc 106.9 Dream, Inc. 0 0 Merchandise inventory Computer supplies Prepaid insurance Prepaid rent office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Accounts payable Wages payable Unearned computer services revenue 0 119 126 610 128 2,016 905 131 163 8,110 290 164 167 20,600 168 1,210 1,290 201 210 860 236 1,350 74,331 7,200 307 Common stock Retained earnings 318 Dividends 319 403 Computer services revenue 0 413 Sales 414 Sales returns and allowances C Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment 0 415 502 612 613 623 0 Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense 637 640 652 0 655 676 Mileage expense Miscellaneous expenses Repairs expense-Computer 677 684