Required information [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. 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 hddie for five days work at the rate of $145 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 . January 7 The company purchased $6,000 of merchandise from Kansas Corporation with terms of 1/10, n/30, Foa January 9 The company received $2,838 cash from Gomez Company as full paynent on its account. January 11 The company completed a five-day project for nlex's Engineering Company and billed it \$5, 410 , which is the total price of $6,870 legs the adva January 13 The company sold merchandise with a retail value of $4,900 and a cost of $3,520 to Liu January 15 The company paid $750 cash for freight charges on the merchandise purchased on January 7 . January 16 The company received $4,080 cash from Delta Company for conputer 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 $800 to Liu Corporation and credited Liu's January 22 The company received the balance due from Liu Corporation, net of the dircount and the allowance. January 24 The company returned defective merchandiae to Kansas Corporation and accepted a credit againgt future purchases (d) January 26 The company purchased $9,500 of merchandise from Kansas Corporation with terms of 1/10, n/30, Foz January 26 The company sold merchandise with a $4,470 cost for $5,880 on credit to kC, Incorporated, invoice January 31 The company paid cash to Lyn nddie for 10 daya' work at $145 per day . February 1 The company paid $2,715 cash to Hillaide Mall for another three months rent in advanee. February 3 The company paid Kansas Corporation for the balance due, net of the cash discount, leas the \$486. eredit from nerchandise returned on January 24. February 5 The company paid $500 cash to Facebook for an advertisement to appear on February 5 only February 11 The company received the balance due from alex's Bngineering Conpany for fees billed on January February 15 \&, Rey withdrey $4,700 cash from the company for pergonal use. February 23 The company sold nerchandise with a $2,480 cost for $3,370 on credit to Delta Company, invoice dated February 23 . February 26 The company paid cash to Lyn hddie for eight days work at $145 per day. February 27 The company reimburaed Santana fey $320 cash for busineas automobile mileage. The conpany February 27 The company reimburaed Santana Rey $320 cash for recorded the reimburaenent as "Mileage zxpense. Narch \& The company purchased $2,780 of computer supplieg fron Harris office products on credit with terms of n/30, FOB degtination, invoice dated Karch 8. Warch 9 The company received the balance due from Delta Company for merchandise rold on Eebruary 23 . March 11 The company paid $790 cash for minor repairs to the company's computer. March 16 The company received $5,390 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full anount due of $3,980 to Harris office Products, consisting of anounts 24 The company billed 15 , 02,21,200, and March 8 March 24 The company billed Eagy Leasing for $9,187 of conputing services provided. dated March 25 . March 31 The company reimbursed Santana key $96 cash for business automobile mileage. The company recorded The company reimburaed Santana key $96 the reimburaenent 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 $2,165. b. Prepaid Insurance coverage of $618 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $145 per day. d. Prepaid rent of $2,715 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,160. f. Depreciation on the office equipment for January 1 through March 31 is $250. 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. 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. Required information [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. 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 hddie for five days work at the rate of $145 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 . January 7 The company purchased $6,000 of merchandise from Kansas Corporation with terms of 1/10, n/30, Foa January 9 The company received $2,838 cash from Gomez Company as full paynent on its account. January 11 The company completed a five-day project for nlex's Engineering Company and billed it \$5, 410 , which is the total price of $6,870 legs the adva January 13 The company sold merchandise with a retail value of $4,900 and a cost of $3,520 to Liu January 15 The company paid $750 cash for freight charges on the merchandise purchased on January 7 . January 16 The company received $4,080 cash from Delta Company for conputer 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 $800 to Liu Corporation and credited Liu's January 22 The company received the balance due from Liu Corporation, net of the dircount and the allowance. January 24 The company returned defective merchandiae to Kansas Corporation and accepted a credit againgt future purchases (d) January 26 The company purchased $9,500 of merchandise from Kansas Corporation with terms of 1/10, n/30, Foz January 26 The company sold merchandise with a $4,470 cost for $5,880 on credit to kC, Incorporated, invoice January 31 The company paid cash to Lyn nddie for 10 daya' work at $145 per day . February 1 The company paid $2,715 cash to Hillaide Mall for another three months rent in advanee. February 3 The company paid Kansas Corporation for the balance due, net of the cash discount, leas the \$486. eredit from nerchandise returned on January 24. February 5 The company paid $500 cash to Facebook for an advertisement to appear on February 5 only February 11 The company received the balance due from alex's Bngineering Conpany for fees billed on January February 15 \&, Rey withdrey $4,700 cash from the company for pergonal use. February 23 The company sold nerchandise with a $2,480 cost for $3,370 on credit to Delta Company, invoice dated February 23 . February 26 The company paid cash to Lyn hddie for eight days work at $145 per day. February 27 The company reimburaed Santana fey $320 cash for busineas automobile mileage. The conpany February 27 The company reimburaed Santana Rey $320 cash for recorded the reimburaenent as "Mileage zxpense. Narch \& The company purchased $2,780 of computer supplieg fron Harris office products on credit with terms of n/30, FOB degtination, invoice dated Karch 8. Warch 9 The company received the balance due from Delta Company for merchandise rold on Eebruary 23 . March 11 The company paid $790 cash for minor repairs to the company's computer. March 16 The company received $5,390 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full anount due of $3,980 to Harris office Products, consisting of anounts 24 The company billed 15 , 02,21,200, and March 8 March 24 The company billed Eagy Leasing for $9,187 of conputing services provided. dated March 25 . March 31 The company reimbursed Santana key $96 cash for business automobile mileage. The company recorded The company reimburaed Santana key $96 the reimburaenent 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 $2,165. b. Prepaid Insurance coverage of $618 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $145 per day. d. Prepaid rent of $2,715 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,160. f. Depreciation on the office equipment for January 1 through March 31 is $250. 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. 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