Required information [The following information applies to the questions displayed below.] Santana Rey created Business Solutions on October 1, 2020. 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, 2020. 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 Recelvable account. This change allows the company to continue using the existing chart of accounts. Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does 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 (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. 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 company 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 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 $5,500, 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 Liu Corporation, involce dated January 13. January 15 The company paid $600 cash for freight charges on the merchandise purchased on January 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 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 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 (dobited accounts payable). The defective merchandise involce cost, net of the discount, was \$496. January 26 The company purchased $9,000 of merehandise from Kansan Corporation with terms of 1/10, n/30, FOB destination, invoice dated January 26 .. ... 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 cont for $5,800 on credit to Kc, Incorporated, invoice dated January 26 . January 31 The company paid cash to Lyn Addie for 10 days' work at $125 per day. February 1 The company paid $2,475 cash to Hillside Mal1 for another three months rent in advance. February 3 The company paid Kaneas Corporation for the balance due, net of the cash discount, less the $496 oredit 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 The company paid a $4,800 cash dividend. February 23 The company sold merchandise with a $2,660 cost for $3,220 on eredit to Delta conpany, involce dated February 23 . Yebruary 26 The company paid cash to Lyn Addie for elght days' work at \$125 per day. Fobruary 27 The company roimbursed santana Rey $192 eash for business autonobile mileage. The conpany recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,730 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. March 11 The company paid $960 cash for minor repairs to the company's computer. March 16 The company received $5,260 cash from Dream, Incorporated, for computing servicen provided. March 19 The company pald the full anount due of $3,830 to Harris office Products, consisting of amounts created on December 15 (of $1,100) and Mareh 8 . March 24 The company billed Eany Leasing for $9,047 of computing nervices provided. March 25 The company sold merchandise with a $2,002 cost for $2,800 on credit to wildeat services, involce dated March 25 . March 30 The company sold merchandise with a $1,048 cost for $2,220 on eredit to IPM company, invoice dated March 30 . March 31 The cospany reimbursed Santana Rey $128 eash for business automobile mileage. The company recorded the reimbursesent 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. Depreclation on the office equipment for January 1 through March 31 is $400. (x) Answer is not complete. Required information (1) Required information \begin{tabular}{|c|c|c|c|} \hline \multicolumn{3}{|c|}{ 613: Depreciation Expense-Computer Equipment } \\ \hline Date & Deblt & Credit & Balance \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} 3. Pr tifal? Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31,2021. (a) Use a single-step format. List all expenses without differentiating between selling expenses and general and administrative expenses. Required information Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31,2021. (b) Use a multiple-step format that begins with gross sales (service revenues plus gross product sales) and includes separat 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 remainin expenses as general and administrative. recorded the reimboraement an "Mileage Expente." March 8 The compony purchased 52,730 of computer supplien from Marria oftlee Producti on oredit with termin of n/30, FOB destination, invoice dated March B. March 9 the company recelved the balance due from Delta Conpany for nerchandiafeisold on February 23. March 11 The conpany paid $960 cash for ninor repalts to the conpany'a conputer. Mareh 16 The company recelved $5,260 cash from Drean, Incorporated, for computing gervicea provided. March 19 The coepany paid the full amount due of $3,830 to Harris offlce Products, eonsisting of amounta created on December 15 (of $1,100 ) and March 9 . March 24 The company billed Easy Leasing for 59,047 of conputing bervices provided. March 25 The company aold merchandite with a 52,002 cont for $2,800 on oredit to bildoat Services, invofo dated Mareh 25 . March: 10 The company nold merchandise with a $1,048 dobt for $2,220 on eredit. to 17M Canpany, invofee dated March 30. Mareh 31 The company reimburaed Santana Rey $128 cash for business automobile mileage. The conpany recorded the reimburaement an "Mileage Expense." The following additional facts are avallable for preparing adjustments on March 31 prior to financial 5 tatement 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 pald 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. 1. Depreciation on the office equipment for January 1 through March 31 is $400. 9. The March 31 amount of merchandise inventory still avallable totais $704. 5. Prepare a statement of retained earnings (from the adjusted tral balance in part 3) for the three months ended March 31,2021 6 31, 2021. Required information [The following information applies to the questions displayed below.] Santana Rey created Business Solutions on October 1, 2020. 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, 2020. 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 Recelvable account. This change allows the company to continue using the existing chart of accounts. Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does 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 (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. 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 company 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 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 $5,500, 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 Liu Corporation, involce dated January 13. January 15 The company paid $600 cash for freight charges on the merchandise purchased on January 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 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 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 (dobited accounts payable). The defective merchandise involce cost, net of the discount, was \$496. January 26 The company purchased $9,000 of merehandise from Kansan Corporation with terms of 1/10, n/30, FOB destination, invoice dated January 26 .. ... 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 cont for $5,800 on credit to Kc, Incorporated, invoice dated January 26 . January 31 The company paid cash to Lyn Addie for 10 days' work at $125 per day. February 1 The company paid $2,475 cash to Hillside Mal1 for another three months rent in advance. February 3 The company paid Kaneas Corporation for the balance due, net of the cash discount, less the $496 oredit 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 The company paid a $4,800 cash dividend. February 23 The company sold merchandise with a $2,660 cost for $3,220 on eredit to Delta conpany, involce dated February 23 . Yebruary 26 The company paid cash to Lyn Addie for elght days' work at \$125 per day. Fobruary 27 The company roimbursed santana Rey $192 eash for business autonobile mileage. The conpany recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,730 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. March 11 The company paid $960 cash for minor repairs to the company's computer. March 16 The company received $5,260 cash from Dream, Incorporated, for computing servicen provided. March 19 The company pald the full anount due of $3,830 to Harris office Products, consisting of amounts created on December 15 (of $1,100) and Mareh 8 . March 24 The company billed Eany Leasing for $9,047 of computing nervices provided. March 25 The company sold merchandise with a $2,002 cost for $2,800 on credit to wildeat services, involce dated March 25 . March 30 The company sold merchandise with a $1,048 cost for $2,220 on eredit to IPM company, invoice dated March 30 . March 31 The cospany reimbursed Santana Rey $128 eash for business automobile mileage. The company recorded the reimbursesent 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. Depreclation on the office equipment for January 1 through March 31 is $400. (x) Answer is not complete. Required information (1) Required information \begin{tabular}{|c|c|c|c|} \hline \multicolumn{3}{|c|}{ 613: Depreciation Expense-Computer Equipment } \\ \hline Date & Deblt & Credit & Balance \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} 3. Pr tifal? Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31,2021. (a) Use a single-step format. List all expenses without differentiating between selling expenses and general and administrative expenses. Required information Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31,2021. (b) Use a multiple-step format that begins with gross sales (service revenues plus gross product sales) and includes separat 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 remainin expenses as general and administrative. recorded the reimboraement an "Mileage Expente." March 8 The compony purchased 52,730 of computer supplien from Marria oftlee Producti on oredit with termin of n/30, FOB destination, invoice dated March B. March 9 the company recelved the balance due from Delta Conpany for nerchandiafeisold on February 23. March 11 The conpany paid $960 cash for ninor repalts to the conpany'a conputer. Mareh 16 The company recelved $5,260 cash from Drean, Incorporated, for computing gervicea provided. March 19 The coepany paid the full amount due of $3,830 to Harris offlce Products, eonsisting of amounta created on December 15 (of $1,100 ) and March 9 . March 24 The company billed Easy Leasing for 59,047 of conputing bervices provided. March 25 The company aold merchandite with a 52,002 cont for $2,800 on oredit to bildoat Services, invofo dated Mareh 25 . March: 10 The company nold merchandise with a $1,048 dobt for $2,220 on eredit. to 17M Canpany, invofee dated March 30. Mareh 31 The company reimburaed Santana Rey $128 cash for business automobile mileage. The conpany recorded the reimburaement an "Mileage Expense." The following additional facts are avallable for preparing adjustments on March 31 prior to financial 5 tatement 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 pald 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. 1. Depreciation on the office equipment for January 1 through March 31 is $400. 9. The March 31 amount of merchandise inventory still avallable totais $704. 5. Prepare a statement of retained earnings (from the adjusted tral balance in part 3) for the three months ended March 31,2021 6 31, 2021