AA-number 4

Nequited intormation [The following information applles 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 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. In response to requests from customers, S. Rey will begin selling computer sqftware. The company will extend credit terms of 1/10,n/30, FOB shipping point, to all customers who purchase this mercharidise. However, no cash discount is available on consulting fees. Additional accounts (Nos. 119,413, 414,415, and 502) are added to its general ledger to accommodate the company's new merchandising activities. Its transactions for January through March follow. January 4 The company paid cash to Lyn Addie for five dayn' work at the rate of $195 per day. Tour of the five dayn relate to wagee payable that wore aecrued in the prior year. January 5 Santana Rey invested an additional $24,000 eash in the company. January 7 The company purchaned $6,300 of merchandiae from Kannan Corporation with terme of 1/10, n/30, ros ahipping point, involco dated January 7. January 9 The company reeelved 32,840 cash from Conez Company as full payment on ita account. January 11 The company completed a flve-day project for Alex'a Engineering Coepany and bi2lod 1t$55,320, which in the total price of $6,630 lese the advance paymont of $1,310. The company dobited Unearned Computer gerviees Reyenue for 51,310 . January 13 The company nold merohandise with a rotali value of $4,300 and a coat of $3,550 to thiu Corporation, involce dated January 13 . January 15 The company paid 3720 cash for freight oharges on the merehandise purehased on January 7. January i6 The company received 94,060 oanh from Delta company for computer sorvicen prowided. Jamuary 17 The company paid Kaneae Corporation for the invoioe dated January 7 , net of the discount. January 20 the company gave a priee reduction fallowance) of 5300 to the corporation and eredited Liutit Jamuser accounts receivable for that amount. January 22 The company recetved the balance due from Ifu Corporation, not of the discount and the allowance, Yanuary 24 The company roturnod dofoctive noxchand sie to Kansan Corporation and accopted a eredit, agatinat. (tuturo purchaoes (dobited acoounte payabie). The dotoctive eerchandise livalce cost, not of the January 26 The company purchaned $9,200 of merchandiae from Kansan Corporation with terma of 1/10, n/30, ron destination, involee dated January 26. January 26 The eompany nold merchandise with a $4,590 cont for 85,900 on eredit to kc, Incorporated, invoice dated January 26 . January 31 The company paid eash to Lya Addie for 10 daya' work at $195 per day. Tobruary 1 The company paid \$2,655 eash to Hillaide Mal1 for another three months ' rent in advance. February 3 The company paid Kannan Corporation for the balanee due, net of the cash dincount, leas the g486 eredit Erom merchandise returned on January 24 . Febraary 5 The eompany paid $540 eanh to Facebook for an advertinement to appear on Fobruary 5 only. Februaxy 11 the company received the balance due from Alex's Engineering Conpany for feen bliled on January 11. Fobruary 15 8. Rey withdrew $4,700 caah from the company for personal use. Febraary 23 The company nold merchandine with a $2,560 cost for $3,330 on credit to Delta Company, invoice dated February 23 . Fobruary 26. The eompany paid canh to Lyn Addie for elght days' work \&t $195 por day. Fobruary 27 The company relmbureed Santana fey $224 canh for buniness automobile mileage. The company recorded the reimburiement an "Mileage Expende." March 8 The company purchased 92,790 of computer nupplien from llarria office Produeta on eredit with ternn of n/30, rob destination, involoe dated Mareh . Mareh 9 The company received the balance dun Erom Delta Coepany for merchandine aold on Fobruary 23. March 11 The company paid $810 cash for minor repaira to the company's coeputer. March 16 The company recoived $5,450 eash from Droam, Incorporated, for conputing serviaus provided. Mareh 19 The conpany paid the tull amount due of 84,030 to llarris office Froducts, conainting of amountu ereated on Decesber 15 (of $1,240) and March 8. Maroh 24 the eompany bitied Eany Leasing for 59,017 of computing servleen provided. Mareh 25 The company eold merohandise with a 92,052 cont for $2,910 on eredit to Wildeat fervices, Involee dated Maxoh 25. Mareh 30 The gompany nold morohandise with a 61,051 cont tor 12,310 on aredit to TrM Conpany, tavolce dated Maroh 30 . Maceh 31 The compasy reimburaed Santana hey 9192 oanh for buaineud autconobite milloago. The company recorded the relmbureement as "Mileage Fxpense." The following additional facts are avallable for preparing adjustments on March 31 prior to financial statement preparation. a. The March 31 amount of computer supplies stili avallable totals $2,135. b. Prepaid Insurance coverage of $636 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $195 per day. d. Prepaid rent of $2,655 expired during this three-month perlod. e. Debreciation on the combuter eauiament for Januar 1 throuah March 31 is $1.200. a. The March 31 amount of computer suppiles still avallable totals \$2,135. b. Prepaid Insurance coverage of $636 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $195 per day. d. Prepaid rent of $2,655 explied during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,200. t. Depreciation on the office equipment for January 1 through March 31 is $230. g. The March 31 amount of merchandise inventory still avallable totals $614. 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 not soles, cost of goods sold, seling expenses, and general and odministrative expenses. Categorize the following accounts as selling expenses: Wages Expense, Mileage Expense, and Advertising Expense. Categorize the remaining expenses as general and administrative. Complete this question by entering your answers in the tabs below. Prepare an income statement (from the adjusted trial balance in part 3) for the three monthy ended March 35,2022. (a) Use a single-step format. Lit all expenses without differentiating between seling expenses and general and administrative expenses. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31,2022. (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 as general and administrative. Required information \begin{tabular}{|l|l|} \hline & \end{tabular}