Required information SP 4 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4 [The following information applies 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. Number 101 106.1 Cash Account Title. Alex's Engineering Company 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Company 106.5 Liu Corporation 106.6 Gomez Company 106.7 Delta Company 106.8 KC, Incorporated Debit Credit $ 48,552 0 0 3,180 e 2,808 Number Account Title Debit Credit 101 Cash $ 48,552 106.1 Alex's Engineering Company 0 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Company 3,180 106.5 Liu Corporation e 106.6 Gomez Company 2,808 106.7 Delta Company e 106.8 KC, Incorporated 0 106.9 Dream, Incorporated 0 119 Merchandise inventory 126 Computer supplies 700 128 Prepaid insurance 2,097 131 Prepaid rent 865 163 Office equipment 8,080 164 Accumulated depreciation-office equipment $ 380 167 Computer equipment 21,700 168 Accumulated depreciation-Computer equipment 1,130 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 301 Common stock 318 Retained earnings 1,190 620 1,390 75,612 7,660 319 403 413 Sales 414 415 507 Dividends Computer services revenue Sales returns and allowances Sales discounts Sart of anode cold 415 Sales 414 415 Sales returns and allowances Sales discounts 502 Cost of goods sold 612 613 623 637 640 652 Depreciation expense-office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer e e e 0 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 $155 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 $24,500 cash in the company in exchange for more common stock. January 7 The company purchased $6,100 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. January 9 The company received $2,808 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 $5,420, which is the total price of $6,810 less the advance payment of $1,390. The company debited Unearned Computer Services Revenue for $1,390. January 9 January 11 January 13 point, invoice dated January 7. The company received $2,808 cash from Gomez Company as full payment on its account. The company completed a five-day project for Alex's Engineering Company and billed it $5,420, which is the total price of $6,810 less the advance payment of $1,390. The company debited Unearned Computer Services Revenue for $1,390. The company sold merchandise with a retail value of $4,100 and a cost of $3,370 to Liu Corporation, invoice dated January 13. January 15 The company paid $650 cash for freight charges on the merchandise purchased on January 7.1 January 16 The company received $4,140 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 $700 to Liu Corporation and credited Liu'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 January 26 The company purchased $9,200 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB destination, invoice dated January 26. $496. January 26 The company sold merchandise with a $4,450 cost for $5,870 on credit to KC, Incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days' work at $155 per day. February 1 The company paid $2,595 cash to Hillside Mall 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 $496 credit from merchandise returned on January 24. February 5 The company paid $540 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 The company paid a $4,780 cash dividend. February 23 The company sold merchandise with a $2,590 cost for $3,420 on credit to Delta Company, invoice dated February 23, February 26 The company naid cash to Lyn Addie for eight days work at $155 ner day. February 11 The company received the balance due from Alex's Engineering Company for fees billed on January 11. February 15 The company paid a $4,780 cash dividend. February 23 The company sold merchandise with a $2,590 cost for $3,420 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $155 per day. February 27 The company reimbursed Santana Rey $64 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,760 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 23.1 March 11 The company paid $850 cash for minor repairs to the company's computer. March 16 The company received $5,350 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $3,950 to Harris Office Products, consisting of amounts created on December 15 (of $1,190) and March 8. March 24 The company billed Easy Leasing for $9,167 of computing services provided. March 25 The company sold merchandise with a $2,162 cost for $2,980 on credit to Wildcat Services, invoice dated March 25. March 30 The company sold merchandise with a $1,188 cost for $2,370 on credit to IFM Company, invoice dated March 30. March 31 The company reimbursed Santana Rey $128 cash for business 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 $2,095. b. Prepaid Insurance coverage of $699 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $155 per day d. Prepaid rent of $2,595 expired during this three-month period. MUBIRE LOverage ui aus on uuring was c. Lyn Addie has not been paid for seven days of work at the rate of $155 per day. d. Prepaid rent of $2,595 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,130. f. Depreciation on the office equipment for January 1 through March 31 is $380. g. The March 31 amount of merchandise inventory still available totals $524. C SP 4 Serial Problem Part 3 (Algo) 3. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger BUSINESS SOLUTIONS Partial Work Sheet March 31, 2022 Unadjusted Trial Balance Account Title Debit Number 101 Cash 106.1 Alex's Engineering Company Adjustments Adjusted Trial Balance Credit Debit Credit Debit Credit 3. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger BUSINESS SOLUTIONS Partial Work Sheet March 31, 2022 Unadjusted Trial Balance Account Title Debit Adjustments Adjusted Trial Balance Credit Debit Credit Debit Credit Number 101 Cash 106.1 Alex's Engineering Company 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Company 106.5 106.6 106.7 Liu Corporation Gomez Company Delta Company 106 8 KC Incommorated Required information. 106.7 Delta Company 106 8 106.9 119 KC, Incorporated Dream, Incorporated Merchandise inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 164 167 168 201 Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation Computer equipment Accounts payable 210 Wages payable 236 Unearned computer services revenue 307- Common stock 318 Retained earnings 319 Dividends 318 319 403 Required information Retained earnings Dividends Computer services revenue 413. Sales 414 Sales returns and allowances 415 Sales discounts 502 Cost of goods sold 612 613 623 637 640 652 655 676 677 684 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 Required information 502 612 613 623 637 640 652 655 676 677 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 684 Repairs expense-Computer Totals 0 0 0 SP 4 Serial Problem Part 4 (Algo) 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 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. Required 4A Required 48 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. BUSINESS SOLUTIONS 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. Revenues BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 es Total revenues Expenses 6 Total revenues Expenses ces 0 Total expenses 0 Required 48 > Net sales Expenses Selling expenses BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 Total selling expenses General and administrative expenses 0 0 0 0 Total selling expenses General and administrative expenses 0 Total general and administrative expenses Total expenses < Required 4A $ SP 4 Serial Problem Part 5 (Algo) 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31, 2022 BUSINESS SOLUTIONS Statement of Retained Earnings For Three Months Ended March 31, 2022 Retained earnings, December 31, 2021 Add Net income es Less Dividends Retained earnings, March 31, 2022 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2022 (Report Accounts receivable as a single amount) SP 4 Serial Problem Part 6 (Algo) BUSINESS SOLUTIONS Balance Sheet March 31, 2022 Assets Current assets Total current assets Plant assets L 6 Total current assets Plant assets hces Total plant assets Total assets Current liabilities 0 0 0 Liabilities Equity 0 Required information Total plant assets Total assets Current liabilities Total equity Total liabilities and equity 0 0 0 Liabilities Equity