Required information [The following information apples to the questions displayed below) 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 $48,372 106.1 Alex's Engineering Co. 0 106.2 Wildcat Services 0 106.3 Easy Leasing 0 106.4 T Co. 3,000 106.5 Liu corp. 0 106.6 Gomes Co. 2,668 106.7 Delta Co. 0 106.8 KC, Inc. 106.9 Dream, Inc. 0 11 Merchandise inventory 0 126 Computer supplies 580 128 Prepaid Insurance 1,665 231 Prepaid rent 825 163 office equipment 9,000 164 Accumulated depreciation-office equipment 400 162 Computer equipment 20,000 168 Accumulated depreciation-Computer equipment 1,250 201 Accounts payable 1,100 210 Wages payable 500 236 Unearned computer services revenue 1,500 301 5. Rey, Capital 80,360 302 5. Rey, withdrawal 403 Computer services revenue 413 Sales Bales return and allowancea 415 sales discounts 502 Cont of good old 612 Depreciation expense-office equipment 613 Depreciation expense-computer equipment 623 Wages expand 5 0 0 a OOO 613 623 637 640 652 Depreciation expense-Computer equipment Wages expense Insurance expense Rent expenso Computer supplies expense Advertising expense Mileage expepne Miscellaneous expenses Repairs expense-Computer 0 0 0 0 0 0 655 676 677 684 0 In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 1/10, 1/30, 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: Jan. The company paid canh to Lyn Addie for five days' work at the rate of $125 per day. Four of the five daya relate to vages payable that were accrued in the prior year. 5 Santana Rey invested an additional $25,000 cash in the company. 7 The company purchased $5,800 of merchandise from Kannae Corp. Vith terms of 1/10, n/30, ron shipping point, Invoice dated January 7. 9 The company received $2,668 cash from Gomez co. as full payment on its account. 11 The company completed a five-day project for Alex's Engineering co. apd billed it $5,500, which the total price of $7,000 leon the advance payment of $1,500. The company debited Unearned Computer Services Revenue for $1,500. 13 The company told merchandise with a retall value of $5,200 and a cont of $3,560 to Ilu Corp., Invoice dated January 13. 15 The company paid $600 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,000 cash from Delta Co. for computer services provided. 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 $500 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 tuture purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $496. 26 The company purchased $9,000 of merchandise from Kansas Corp. with terms of 1/10, 1/30, POB destination, Invoice dated January 26. 26 The company sold merchandise with a 34,640 cont for $5,800 on credit to kc, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addia for 10 days work at $125 per day. Peb. 1 The company paid $2,475 canh 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, loss the $496 credit from merchandise returned on January 24. EAN ARALAR 3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $496 credit from merchandise returned on January 24. 5 The company paid $600 canh 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 Santana Nay withdrew $4,800 cash from the company for personal use. 23 The company sold merchandise with a $2,660 cont for $3,220 on credit to Delta Co., Invoice dated February 23. 26 The company paid can to Lyn Addie for eight dayat vork at $125 per day. 27 The company reimbursed Santana Rey $192 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense. Mar. 8 The company purchased $2,730 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 $960 canh for minor repairs to the company's computer, 16 The company received $5,260 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $3,830 to Harris Office Products, consisting of amounts created on December 15 (of $1,100) and March 8. 24 The company billed Easy Leaning for $9,047 of computing services provided. 25 The company old merchandise with a $2,002 cost for $2,000 on credit to wildcat Servicon, invoica dated March 25. 30 the company wold nerehandise with a $1,048 cout for $2,220 on credit to 1PX Company, Invoice dated March 30. 31 The company reimbursed Santana Rey $128 for business automobile mileage. The company recorded the reimbursement a 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. Prepold Insurance coverage of $555 expired during this 3-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 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,250, 1. Depreciation on the office equipment for January 1 through March 31 is $400. 9. The March 31 amount of merchandise Inventory still available totals $704 - Prepare an income statement from the adjusted trial balance in part 3) for the three months ended March 31, 2020. ) Use a single-step format List all expenses without differentiating between selling expenses and general and administrative xpenses ) Use a multiple-step format that begins with gross sales service revenues plus gross product sales and includes separate 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. Ljst 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, 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 Expedce. Categorize the remaining expenses as general and administrative Show less BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 0 Net sales 0 0 Expenses Selling expenses