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 available 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 activities. Its transactions for January through March follow. January 4 The company paid cash to Lyn Addie for five days work at the rate of $125 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 $25,000 cash in the company in exchange for more common stock. January 7 The conpany purchased $5,800 of merchandise from Kansas Corporation with terms of 1/10, n/30, FoB shipping point, invoice dated January 7. January 9 The company received $2,668 cash f rom Gomez company as ful1 payment on its account. January 11 The company completed a fiverday project for Alex's Engineering Company and billed it $5,500, which is the total price of $7,000 less the advance payment of $1,500. The company debited Unearned Computer Services Revenue for $1,500. January 13 The company sold merchandise with a retail value of $5,200 and a cost of $3,560 to tiu corporation, invoice dated January 13. January 15 The company paid $600 cash for freight charges on the merchandise purchased on Joriary 7 . January 16 The company received $4,000 cash from Delta Company for computer services provided. January 17 The company paid Kansas Corporation for the involce dated January 7 , net of the discount. January 20 The company gave a price reduction (allowance) of $500 to Liu corporation and credited Iiu's accounts receivable 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 $496. January 26 The company purchased $9,000 of merchandise from Kansas corporation with terms of 1/10, n/30, FoB destination, invoice dated January 26 . January 26 The company sold merchandise with a $4,640 cost for $5,800 on credit to kC, Incorporated, invoice dated January 26 . January 31 The company paid eash to Lyn Addie for 10 days work at $125 per day. February 1 The company pald $2,475 cash to Hillside Mal1 for another three month' rent in advance. February 3 The company paid Kansas Corporation for the balance due, net of the cash discount, less the \$496 credit from merehandise returned on January 24 . February 5 The company pald $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 Coupany for fees billed on January 11. February 15 The eompany paid a $4,800 cash dividend. Fobruary 23 The company sold merchandise with a $2,660 cost for $3,220 on eredit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days work at \$125 per day. February 27 The company reimbursed Santana Rey $192 cash for business automobile mileage. The conpany recorded the reimbursement as "Mileage Expense. " March s The company purchased $2,730 of computer supplies from Harris office products on eredit with terma of n/30, ros destination, invoice dated March 8 . Mareh 9 The company received the balance due from Delta Company for merchandise sold on Febraary 23. March 11 The company paid $960 cash for minor repairs to the conpany's computer. Mareh 16 The company received $5,260 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of 53,830 to Barris office products, consisting of amounta created on Decenber 15 (of $1,100 ) and March Mereh 24 The company billed kasy teaning for 59,047 of eonputing servicen provided, March 25 The company sold merchandise with a $2,002 cost for $2,800 on credit to Wildeat services, invoice dated March 25 . Mareh 30 The eompany sold merchandise with a $1,048 cost for $2,220 on credit [o IrM Company, invoiee dated March 30. March 31 The company reimbursed Santana Rey $128 cash for businesa automobile mileage. The company recorded the reimbursement as "Mileage Expense." 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 avallable totals $704. SP 4 Serial Problem Part 4 (Static) 4. Prepare an income statement (from the adjusted trial balance in part 3) for the three monthstended 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 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. 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 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 categories for net sales, cost of goods sold, seling expenses, and general and Advertising Expense. Categorize the remaining expenses as generai and administrative. Show less 4 (1) Required information 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 available 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 activities. Its transactions for January through March follow. January 4 The company paid cash to Lyn Addie for five days work at the rate of $125 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 $25,000 cash in the company in exchange for more common stock. January 7 The conpany purchased $5,800 of merchandise from Kansas Corporation with terms of 1/10, n/30, FoB shipping point, invoice dated January 7. January 9 The company received $2,668 cash f rom Gomez company as ful1 payment on its account. January 11 The company completed a fiverday project for Alex's Engineering Company and billed it $5,500, which is the total price of $7,000 less the advance payment of $1,500. The company debited Unearned Computer Services Revenue for $1,500. January 13 The company sold merchandise with a retail value of $5,200 and a cost of $3,560 to tiu corporation, invoice dated January 13. January 15 The company paid $600 cash for freight charges on the merchandise purchased on Joriary 7 . January 16 The company received $4,000 cash from Delta Company for computer services provided. January 17 The company paid Kansas Corporation for the involce dated January 7 , net of the discount. January 20 The company gave a price reduction (allowance) of $500 to Liu corporation and credited Iiu's accounts receivable 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 $496. January 26 The company purchased $9,000 of merchandise from Kansas corporation with terms of 1/10, n/30, FoB destination, invoice dated January 26 . January 26 The company sold merchandise with a $4,640 cost for $5,800 on credit to kC, Incorporated, invoice dated January 26 . January 31 The company paid eash to Lyn Addie for 10 days work at $125 per day. February 1 The company pald $2,475 cash to Hillside Mal1 for another three month' rent in advance. February 3 The company paid Kansas Corporation for the balance due, net of the cash discount, less the \$496 credit from merehandise returned on January 24 . February 5 The company pald $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 Coupany for fees billed on January 11. February 15 The eompany paid a $4,800 cash dividend. Fobruary 23 The company sold merchandise with a $2,660 cost for $3,220 on eredit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days work at \$125 per day. February 27 The company reimbursed Santana Rey $192 cash for business automobile mileage. The conpany recorded the reimbursement as "Mileage Expense. " March s The company purchased $2,730 of computer supplies from Harris office products on eredit with terma of n/30, ros destination, invoice dated March 8 . Mareh 9 The company received the balance due from Delta Company for merchandise sold on Febraary 23. March 11 The company paid $960 cash for minor repairs to the conpany's computer. Mareh 16 The company received $5,260 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of 53,830 to Barris office products, consisting of amounta created on Decenber 15 (of $1,100 ) and March Mereh 24 The company billed kasy teaning for 59,047 of eonputing servicen provided, March 25 The company sold merchandise with a $2,002 cost for $2,800 on credit to Wildeat services, invoice dated March 25 . Mareh 30 The eompany sold merchandise with a $1,048 cost for $2,220 on credit [o IrM Company, invoiee dated March 30. March 31 The company reimbursed Santana Rey $128 cash for businesa automobile mileage. The company recorded the reimbursement as "Mileage Expense." 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 avallable totals $704. SP 4 Serial Problem Part 4 (Static) 4. Prepare an income statement (from the adjusted trial balance in part 3) for the three monthstended 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 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. 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 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 categories for net sales, cost of goods sold, seling expenses, and general and Advertising Expense. Categorize the remaining expenses as generai and administrative. Show less 4 (1) Required information