Business Solutions

Unadjusted Trial Balance

March $31,2021$

Debit Credit

Cash $$68,057$

Accounts receivable $22,867$

Merchandise inventory $846$

Computer supplies $3,310$

Prepaid insurance $1,665$

Prepaid rent $3,300$

Office equipment $8,000$

Accumulated depreciation$$Office equipment $$400$

Computer equipment $20,000$

Accumulated depreciation$$Computer equipment $1,250$

Accounts payable

Wages payable

Unearned computer services revenue

Common stock $98,000$

Retained earnings $7,360$

Dividends $4,800$

Computer services revenue $25,307$

Sales $19,240$

Sales returns and allowances $500$

Sales discounts $47$

Cost of goods sold $13,910$

Depreciation expense$$Office equipment

Depreciation expense$$Computer equipment

Wages expense $2,375$

Insurance expense

Rent expense

Computer supplies expense

Advertising expense $600$

Mileage expense $320$

Repairs expense$$Computer $960$

Totals $$151,557$ $$151,557$

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 $$2,005.$

b$.$ Prepaid Insurance coverage of $$555$ expired during this three$-$month period.

c$.$ Lyn Addie has not been paid for seven days of work at the rate of $$125$ per day.

d$.$ Prepaid rent of $$2,475$ expired during this three$-$month period.

e$.$ Depreciation on the computer equipment for January $1$ through March $31$ is $$1,250.$

f$.$ Depreciation on the office equipment for January $1$ through March $31$ is $$400.$

g$.$ The March $31$ amount of merchandise inventory still available totals $$704\mathrm{.}2.$Prepare an income statement from the adjusted trial balance for the three months ended March $31,2022.$

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.