Need to only do muti step income statement

0 Santana Rey created Business Solutions on October 1, 2019. 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, 2019. 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. No. Account Title Debit Credit 101 Cash $48,382 106.1 Alex's Engineering Co. 0 106.2 Wildcat Services 0 106.3 Easy Leasing 106.4 IFM Co. 3,040 106.5 Liu Corp. 106.6 Gomez Co. 2,698 106.7 Delta Co. 0 106.8 KC, Ine. 106.9 Dream, Inc. 119 Merchandise inventory 0 126 Computer supplies 710 128 Prepaid insurance 2,070 Prepaid rent 825 163 office equipment 8,080 164 Accumulated depreciation-office equipment 220 167 Computer equipment 20,900 168 Accumulated depreciation-Computer equipment 1,190 201 Accounts payable 1,250 210 Wages payable 620 236 Unearned computer services revenue 1,490 307 Common stock 74,775 318 Retained earnings 7,160 319 Dividends Computer services revenue 413 Sales Sales returns and allowances 0 0 131 $ 0 403 0 5 Part 4 Part 5 of 7 3.57 boints 4. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2020. (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. eBook Print Complete this question by entering your answers in the tabs below. References Required 4 Required 4B Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2020 (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 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 callinn eynenceer wanne Evnence MiRAND HYNANCA ANN AnverTICINA Ynence Caterize the remaininn Required information BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Sales Less: Sales discounts $ Less: Sales returns and allowances Net sales Cash $ 43,520 37 600 637 42,883 42,883 Expenses Selling expenses 0 Total selling expenses General and administrative expenses ! Required information of 7 Total selling expenses General and administrative expenses 0 ok ht nces 0 Total general and administrative expenses Total expenses Net income 0 $ 42,883 Required 4 Required 4B >> 17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 The company gave a price reduction (allowance) of $600 to Liu Corp., and credited Liu's accounts receivable for that amount. 22 The company received the balance due from Liu Corp., net of the discount and the allowance. 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases (debited accounts payable). 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 $4,560 cost for $5,900 on credit to xc, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $155 per day. Feb. 1 The company paid $2,475 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 credit from merchandise returned on January 24. 5 The company paid $480 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 The company paid a $4,740 cash dividend. 23 The company sold merchandise with a $2,630 cost for $3,320 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $155 per day. 27 The company reimbursed Santana Rey $288 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,810 of computer supplies from Harris Office Products on credit with terms of n/30, POB destination, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $780 cash for minor repairs to the company's computer. 16 The company received $5,320 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $4,060 to Harris office Products, consisting of amounts created on December 15 (of $1,250) and March 8. 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,880 on credit to Wildeat services, Invoice dated March 25. 30 The company sold merchandise with a $1,178 cost for $2,280 on credit to IPN Company, invoice dated March 30. 31 The company reimbursed Santana Rey $192 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense. 0 Santana Rey created Business Solutions on October 1, 2019. 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, 2019. 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. No. Account Title Debit Credit 101 Cash $48,382 106.1 Alex's Engineering Co. 0 106.2 Wildcat Services 0 106.3 Easy Leasing 106.4 IFM Co. 3,040 106.5 Liu Corp. 106.6 Gomez Co. 2,698 106.7 Delta Co. 0 106.8 KC, Ine. 106.9 Dream, Inc. 119 Merchandise inventory 0 126 Computer supplies 710 128 Prepaid insurance 2,070 Prepaid rent 825 163 office equipment 8,080 164 Accumulated depreciation-office equipment 220 167 Computer equipment 20,900 168 Accumulated depreciation-Computer equipment 1,190 201 Accounts payable 1,250 210 Wages payable 620 236 Unearned computer services revenue 1,490 307 Common stock 74,775 318 Retained earnings 7,160 319 Dividends Computer services revenue 413 Sales Sales returns and allowances 0 0 131 $ 0 403 0 5 Part 4 Part 5 of 7 3.57 boints 4. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2020. (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. eBook Print Complete this question by entering your answers in the tabs below. References Required 4 Required 4B Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2020 (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 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 callinn eynenceer wanne Evnence MiRAND HYNANCA ANN AnverTICINA Ynence Caterize the remaininn Required information BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Sales Less: Sales discounts $ Less: Sales returns and allowances Net sales Cash $ 43,520 37 600 637 42,883 42,883 Expenses Selling expenses 0 Total selling expenses General and administrative expenses ! Required information of 7 Total selling expenses General and administrative expenses 0 ok ht nces 0 Total general and administrative expenses Total expenses Net income 0 $ 42,883 Required 4 Required 4B >> 17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 The company gave a price reduction (allowance) of $600 to Liu Corp., and credited Liu's accounts receivable for that amount. 22 The company received the balance due from Liu Corp., net of the discount and the allowance. 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases (debited accounts payable). 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 $4,560 cost for $5,900 on credit to xc, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $155 per day. Feb. 1 The company paid $2,475 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 credit from merchandise returned on January 24. 5 The company paid $480 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 The company paid a $4,740 cash dividend. 23 The company sold merchandise with a $2,630 cost for $3,320 on credit to Delta Co., invoice dated February 23. 26 The company paid cash to Lyn Addie for eight days' work at $155 per day. 27 The company reimbursed Santana Rey $288 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,810 of computer supplies from Harris Office Products on credit with terms of n/30, POB destination, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $780 cash for minor repairs to the company's computer. 16 The company received $5,320 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $4,060 to Harris office Products, consisting of amounts created on December 15 (of $1,250) and March 8. 24 The company billed Easy Leasing for $9,157 of computing services provided. 25 The company sold merchandise with a $2,092 cost for $2,880 on credit to Wildeat services, Invoice dated March 25. 30 The company sold merchandise with a $1,178 cost for $2,280 on credit to IPN Company, invoice dated March 30. 31 The company reimbursed Santana Rey $192 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense