I think my math is wrong, my net income is not adding up and I cannot see where I went wrong in my entries.

Thank you in advance!

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. Credit Debit $ 48,422 3,170 0 2,818 0 0 650 1,989 885 8,030 $ 270 20,000 Number 101 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 119 126 128 131 163 164 167 168 201 210 236 301 302 403 413 414 415 502 612 613 623 637 640 652 655 676 677 684 Account Title Cash Alex's Engineering Company Wildcat Services Easy Leasing IFM Company Liu Corporation Gomez Company Delta Company KC, Incorporated Dream, Incorporated 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 S. Rey, Capital S. Rey, Withdrawals Computer services revenue Sales Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 1,140 1,220 940 1,390 81,004 0 0 In response to requests from customers, S. 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 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. receivable Fay January 4 The company paid cash to Lyn Addie for five days' work at the rate of $235 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 $23,400 cash in the company. January 7 The company purchased $7,500 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. January 9 The company received $2,818 cash from Gomez company as full payment on its account. January 11 The company completed a five-day project for Alex's Engineering Company and billed it $5,400, which is the total price of $6,790 less the advance payment of $1,390. The company debited Unearned computer Service . Services Revenue for $1,390. January 13 The company sold merchandise with a retail value of $4,700 and a cost of $3,420 to Liu Corporation, invoice dated January 13. January 15 The company paid $760 cash for freight charges on the merchandise purchased on January 7. . January 16 The company received $4, 130 cash from Delta Company for computer 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 $500 to Liu Corporation and credited Liu's accounts for that amount. 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 invoice cost, net of the discount, was $486. January 26 The company purchased $9,300 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB destination, invoice dated January 26. January 26 The The company sold merchandise with a $4,599 cost for $5,960 on credit to KC, Incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days work at $235 per day. February 1 The company paid $2,655 cash to Hillside Mail 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 $486 credit from merchandise returned on January 24. February 5 The company paid $600 cash to Facebook for an advertisement to appear on February 5 only. February 11 The company received the balance due from Alex's Engineering Company for fees billed on January 11. February 15 S. Rey withdrew $4,690 cash from the company for personal use. February 23 The company sold merchandise with a $2,460 cost for $3,280 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $235 per day. February 27 The company reimbursed Santana Rey $288 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,870 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. March 9 The company received the balance due from Delta company for merchandise sold on February 23. 11 Th March 16 The company received March 19 The company paid the full amount due of $4,090 to Harris Office Products, consisting of amounts created $5,340 cash from Dream, Incorporated, for computing services provided. The way on December 15 (of $1,220) and March 8. March 24 The company billed Easy Leasing for $9,247 of computing services provided. March 25 The company sold merchandise with a $2,162 cost for $2,900 on credit to Kildcat Services, invoice dated March 30 The company sold merchandise with a $1,068 cost for $2,350 on credit to IFM Company, invoice dated March 30. March 31 The company reimbursed Santana Rey $224 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 25. 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 $2,085. b. Prepaid Insurance coverage of $663 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 $2,655 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,140. f. Depreciation on the office equipment for January 1 through March 31 is $270. g. The March 31 amount of merchandise inventory still available totals $654. 2. Post the journal entries in part 1 to the accounts in the company's general ledger. Note: Begin with the ledger's post-closi adjusted balances as of December 31, 2021. 101: Cash Debit Date Credit 106.1: Accounts Receivable-Alex's Engineering Company Date Debit Credit Balance December 31 0 January 11 5,400 5,400 February 11 5,400 0 1,175 23,400 2,818 760 4,130 7,425 4,153 December 31 January 04 January 05 January 09 January 15 January 16 January 17 January 22 January 31 February 01 February 03 February 05 February 11 February 15 February 26 February 27 March 09 March 11 March 16 March 19 March 31 2,350 2,655 8,721 Balance 48,422 47,247 70,647 73,465 72,705 76,835 69,410 73,563 71,213 68,558 59,837 59,237 64,637 59,947 58,067 57,779 61,059 60,119 65,459 61,369 61,125 600 5,400 4,690 1,880 288 3,280 940 5,340 4,090 244 106.2: Accounts Receivable-Wildcat Services Date Debit Credit Balance December 31 0 March 25 2.900 2,900 106.3: Accounts Receivable-Easy Leasing Date Debit Credit Balance December 31 0 March 24 9,247 9,247 9,247 0 106.4: Accounts Receivable-IFM Company Date Debit Credit Balance December 31 March 30 2,350 2,350 106.5: Accounts Receivable-Liu Corporation Date Debit Credit Balance December 31 0 January 13 4,700 4,700 January 20 500 4,200 January 22 0 4,200 106.6: Accounts Receivable-Gomez Company Date Debit Credit Balance December 31 January 09 2,818 (2,818) 106.7: Accounts Receivable-Delta Company Date Debit Credit Balance December 31 0 February 23 3.280 3,280 March 09 3,280 0 106.8: Accounts Receivable-KC, Incorporated Date Debit Credit Balance December 31 0 January 26 5.960 5,960 106.9: Accounts Receivable-Dream, Incorporated Date Debit Credit Balance December 31 0 119: Merchandise Inventory Debit Credit 126: Computer Supplies Debit Credit Date Balance Date Balance 0 650 December 31 March 08 7,500 2,870 3,520 7,500 4,080 3,420 760 75 December 31 January 07 January 13 January 15 January 17 January 24 January 26 January 26 February 03 February 23 March 25 March 30 4,840 4,765 5,251 14,551 486 9,300 4,590 9,961 8,721 2,460 2,162 1,240 (1,220) (3,382) 1,068 (4,450) 128: Prepaid Insurance Debit Credit 131: Prepaid Rent Debit Credit Date Date Balance Balance 1,989 December 31 885 December 31 February 01 2,655 3,540 163: Office Equipment Debit Credit Date Balance 8,030 164: Accumulated Depreciation Office Equipment Date Debit Credit Balance December 31 270 December 31 167: Computer Equipment Debit Credit Date December 31 Balance 20,000 168: Accumulated Depreciation Computer Equipment Date Debit Credit Balance December 31 1,140 201: Accounts Payable Debit Credit 210: Wages Payable Credit Date Date Debit Balance 1,220 8,720 Balance 940 December 31 January 04 7,500 940 0 1,220 7,500 486 734 December 31 January 07 January 17 January 24 January 26 February 03 March 08 March 19 9,300 8,721 10,034 1,313 4,183 2,870 4,090 93 301: S. Rey, Capital Debit Credit Date Balance 236: Unearned Computer Services Revenue Date Debit Credit Balance December 31 January 11 1,390 (1,390) December 31 81,004 104,404 January 05 23,400 Date 302: S. Rey, Withdrawals Debit Credit 4,690 Balance Balance 4,690 February 15 Date January 11 January 16 March 16 403: Computer Services Revenue Debit Credit 6,790 4,130 5,340 9,247 6,790 10,920 16,260 25,507 March 24 413: Sales Debit 414: Sales Returns and Allowances Debit Credit Date Credit Balance Date Balance January 20 500 500 January 13 January 26 February 23 March 25 March 30 4,700 5,960 3,280 2,900 2,350 4,700 10,660 13,940 16,840 19,190 415: Sales Discounts Debit Credit 47 502: Cost of Goods Sold Debit Credit Balance Date January 22 Balance 47 Date January 13 January 26 February 23 March 25 March 30 612: Depreciation Expense-Office Equipment Date Debit Credit Balance March 31 270 270 613: Depreciation Expense-Computer Equipment Date Debit Credit Balance March 31 1,140 1,140 637: Insurance Expense Debit Credit Date Balance Date January 04 January 31 February 26 623: Wages Expense Debit Credit 235 2,350 1,880 Balance (235) (2,585) (4,465) Date 640: Rent Expense Debit Credit 2,655 Date Balance 2,655 652: Computer Supplies Expense Debit Credit 2,870 Balance 2,870 February 01 March 08 Date 655: Advertising Expense Debit Credit 600 Balance 676: Mileage Expense Debit Credit 288 Balance February 05 600 Date February 27 March 11 288 224 512 677: Miscellaneous Expenses Debit Credit 684: Repairs Expense-Computer Debit Credit Date Balance Date Balance March 11 940 940 Required 4A Required 4B Prepare an income statement (from the adjusted trial balance in part 3) for the three (a) Use a single-step format. List all expenses without differentiating between selling administrative expenses. BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 Revenues Computer services revenue $ 16,440 16,211 Net sales Total revenues 32,651 Expenses 940 13,214 270 1,140 4,465 633 Repairs expense-Computer Cost of goods sold Depreciation expense-Office equipment Depreciation expenseComputer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Total expenses Net income 2,655 2,015 600 532 26,464 6,187 $ Required 4A Required 4B 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. Show less A $ 32,651 500 47 547 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 Gross sales Less: Sales returns and allowances $ Less: Sales discounts Net sales Cost of goods sold Gross profit Expenses Selling expenses Wages expense Mileage expense Advertising expense 32,104 13,214 18,890 4,465 532 600 5,597 270 1,140 Total selling expenses General and administrative expenses Depreciation expense-Office equipment Depreciation expense-Computer equipment Insurance expense Rent expense Computer supplies expense Repairs expense-Computer 633 2,655 2,015 940 Total general and administrative expenses Total expenses Net income 7,653 13,250 5,640 $