Required information [The following information applies 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 Detalt $48,372 Credit 3,000 2,660 0 580 1,665 825 3,000 400 20.00 To Account Title 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 106.5 Liu Corp. 106.6 Gomez Co. 106.7 Delta Co. 106.8 KC, Inc 106.9 Dream, Inc. Merchandise inventory 126 Computer supplies 128 Prepaid Insurance 131 Prepaid rent 163 office equipment 164 Accumulated depreciation office equipment 162 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 301 S. Rey, Capital 302 S. Rey. Withdrawals 402 Computer services revenue 413 Sales 414 Sales returns and allowances 415 Sales discounts 502 Cost of goods sold 612 Depreciation expense-office equipment 610 Depreciation expense-Computer equipment 623 Mages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 584 Repairs expense-Computer 1.250 1.100 500 1,500 30,160 0 @ In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 1/10./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. 4 The company pold 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 5 Santana Rey invested an additional $25,000 cash in the company 7 The company purchased $5,000 of merchandise from Kansas Corp. with terms of 1/10, 1/30, To shipping point. invoice dated January 7. The company received $2,661 cash from Got Co. as full payment on its account. 11 The Dry completed a five-day project for Alex's Engineering Co. and billed it $5.500, which is the total priew of $7.000 less the advance payment of $1,500. The company debited Unearned computer Services Revene for $1,500 1. The company sold merchandise with retail value of $5,200 and a cost of $3.500 to Liu Corp. fnvoice dated January 13 15 The company vaid 5600 cash for freight charges on the merchandise purchased on January ). 16 The company received $4.000 cash from Delta to for computer services provided. on consulting fees an accounts DS 1 418 414 415 and 504 are seed to its general ledger to accommodate the company's new merchandising activities. Its transactions for January through March follow Jan. The company paid cath to Lyn Addie for five days work at the rate of $135 per day. Your of the five days relate to uges payable that were accrued in the prior year. 5 Santana Rey invested an additional $25,000 ch in the con 7 The company purchased $5.800 of merchandise fra Cansas Cors with teres of 1/10, 30, shipping point, invece dated January The company received 12,665 cash from Game Co. Full payments its count 11 The company completed a five-day project for Alex's Engineering and billed it $5.500, which is the total price of $7,000 less the avance payment of $1,500. I debited earned Computer Services were for $1,500 13 The company seld merchandise with a retail value of $5,300 to 3.5 to La Coru, imice dated January 13 15 The company paid 5600 cash for freight charges on the mechanische Try 7 16 The company received 4.000 cash ro Detector conguee series provided 17 The company paid Kansas Corp. for the voice date of the discount 20 The company cave price rection allowance) of $500 to Corp. w ceedited Llu's accounts receivable for that wount 22 The company received the balance due from a corp. net of the discount and the allowance 24 The company returned defective serchandise to Kansas Carcestet. credit ist future chases (debited accounts payable). The defective rchandise invoice cost, set of the discount, 5498 26 The company purchased $9.00 of archandise from a Cory. Wil teref 1/10, 1/30, Fon destination, invoice dated January 26. 26 The company sold merchandise with 54,600 for $5,000 credit to invoice dated Jamry 25 31 The company paid cash to Lyn Adde for 1 days at $125 perder 1 The company paid 2.475 Call to Hillside ell or another three months' rent dance 3. The company at Kansas Corp. for the balance de stof cars the credit from merchandise returned on January 24 5 The company paid $600 cash to Facebook for so to open only 11 The company received the balance de fron Ale! Engineering for free billed on January 11. 15 Santana Rey withdrew $4,00 cash from the company formele 23 The company sold archandise with cost for $9.220 credit to Delta voce da February 23 26 The company paid cash te tyn Addie for pro 27 The company reimbursed Santana y $293 for bucies we see the company recorded the resurset silage Expense. Har 8 The company purchased $2,70 of tower suplies from Brits credit wittee of 1/30. FOB destination, Invoice dated Manchi 9 The company received the balance froe Delta oferriery 23 11 The company paid 5960 cash for einer repairs to be console 16 The company received 55.203 cash from Dream Int for como services per 19 The company pale the full amount du , terris offerts. at of onts created on December 15 (of $1,100) and March 24 The company billed Easy Leasing for $9.047 of computing service sowie 25 The company sold merchandise with $2,602 cost for $2.10 credit te Services de March 25 30 The company sold acechandise with a $1,0 cost for 37.220 credit to ERC March 21 The company reimbursed Santana Rey 5120 for business will come recorded the rest asileae Expense The following additional fects are available for preparing ejustments on March 31 prior to financial statement preparation 6. The March 31 amount of computer supplies still available totals $2005 b. Prepaid Insurance coverage of 5555 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 51250 1. Depreciation on the office equipment for January through March 315400 9. The March 31 amount of merchandise inventory still available totals $704 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 seling expenses and general and administrative expenses (b) Ure a multiple step format that begins with gross sales service revenues plus gros product sales) and includes separate categories for net sales coot of goods sold selling expenses and general and administrative expenses Categorize the following accounts es 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 information accounts as selling expenses: Wages Expense, Mileage Expense, and Advertising Expense. Categorize the remaining expense 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 seling expenses: Wages Expense, Mileage Expense, and Advertising Expense. Categorize the remaining expenses as general and administrative Show less UUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 0 Not sales 0 0 Expenses Selling expenses 0 Total selling expenses General and administrative expenses 0 Total general and administrative expenses Total expenses 0 $