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. Credit Debit $48,372 .ee 580 1,665 825 8,000 20,000 164 ,250 1,100 No. 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. 119 Merchandise inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 office equipment Accumulated depreciation-office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 301 S. Rey, Capital 302 5. Rey, Withdrawals 403 Computer Services revenue 413 Sales 414 Sales returns and allowances 415 Sales discounts 502 Cost of goods sold 612 613 623 Wages expense 637 Insurance expense Rent expense 652 655 Advertising expense 676 Mileage expense 677 684 1,500 80, 360 Depreciation expense-Office equipment Depreciation expense-Computer equipment 640 Computer supplies expense Miscellaneous expenses Repairs expense-Computer Next > for $2,80 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 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. f. Depreciation on the office equipment for January 1 through March 31 is $400. g. 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 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. (a) Use a single-step format. List all expenses without differentiating between selling expenses and general and administrative expenses. BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Revenues Total revenues Expenses 4 5 6 of 9 Next > BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Net sales Expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses