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. $[$SEE IMAGE$]$

The following additional facts are available for preparing adjustments on March $31$ prior to financial statement preparation.

The March $31$ amount of computer supplies still available totals $$2,145.$

Prepaid Insurance coverage of $$609$ expired during this three$-$month period.

Lyn Addie has not been paid for seven days of work at the rate of $$215$ per day.

Prepaid rent of $$2,655$ expired during this three$-$month period.

Depreciation on the computer equipment for January $1$ through March $31$ is $$1,190.$

Depreciation on the office equipment for January $1$ through March $31$ is $$380.$

The March $31$ amount of merchandise inventory still available totals $$554.$

$1.$ Prepare journal entries to record each of the January through March transactions.

$2.$ Post the journal entries in part $1$ to the accounts in the company$$s general ledger. Note: Begin with the ledger$$s post$-$closing adjusted balances as of December $31,2021.$

$3.$ 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.

$4.$ 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.

$5.$ Prepare a statement of retained earnings $($from the adjusted trial balance in part $3)$ for the three months ended 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.$)$