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 No. Account Title Debit Credit 101 Cash $48, 492 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 3,140 106.5 Liu Corp. 106.6 Gomez Co. 2,818 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. 119 Merchandise inventory 126 Computer supplies 600 128 Prepaid insurance 2,097 131 Prepaid rent 875 163 Office equipment 8,120 164 Accumulated depreciation office equipment 210 167 Computer equipment 21,900 168 Accumulated depreciation Computer equipment 1,200 201 Accounts payable 1,160 210 Wages payable 660 236 Unearned computer services revenue 1,460 301 5. Rey, Capital 83,352 302 S. Rey, withdrawals Computer services revenue 413 Sales 414 Sales returns and allowances Sales discounts 502 Cost of goods sold 612 Depreciation expense-Office equipment 613 Depreciation expense-Computer equipment 623 Wages expense 637 Insurance expense 640 Rent expense 652 Computer supplies expense 652 655 676 677 684 Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 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: Jan. 4 The company paid cash to Lyn Addie for five days' work at the rate of $165 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $24,600 cash in the company. 7 The company purchased $6,400 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. 9 The company received $2,818 cash from Gomez Co. as full payment on its account. 11 The company completed a five-day project for Alex's Engineering Co. and billed it $5,360, which is the total price of $6,820 less the advance payment of $1,468. The company debited Unearned Computer 13 The company sold merchandise with a retail value of $4,900 and a cost of $3,520 to Liu Corp., invoice dated January 13. 15 The company paid $800 cash for freight charges on the merchandise purchased on January 7. 16 The company received $4,15e cash from Delta Co. for computer services provided. 17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount. 20 The company gave a price reduction (allowance) of $700 to Liu Corp., and credited Liu's accounts 22 The company received the balance due from Liu Corp., net of the discount and the allowance. 24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $476. 26 The company purchased $9,200 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26. 26 The company sold merchandise with a $4,550 cost for $5,870 on credit to kc, Inc., invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $165 per day. Feb. 1 The company paid $2,625 cash to Hillside Mall for another three months' rent in advance. 3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $476 credit from merchandise returned on January 24. 5 The company paid $560 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 16 Cantan Data Crach from her farne 11 ine company received the balance que Tron ALEX 5 Engineering co. Tor Tees Di Leo on January 11. 15 Santana Rey withdrew $4,700 cash from the company for personal use. 23 The company sold merchandise with a $2,580 cost for $3,280 on credit to Delta Co., Invoice dated February 23 26 The company paid cash to Lyn Addie for eight days' work at $165 per day. 27 The company reimbursed Santana Rey $288 for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,790 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $790 cash for minor repairs to the company's computer. 16 The company received $5,458 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $3,95e to Harris Office Products, consisting of amounts created on December 15 (of $1,160) and March 8. 24 The company billed Easy Leasing for $9,207 of computing services provided. 25 The company sold merchandise with a $2,142 cost for $2,940 on credit to Wildcat Services, Invoice dated March 25. 30 The company sold merchandise with a $1,128 cost for $2,290 on credit to IFM Company, invoice dated 31 The company reimbursed Santana Rey $128 for business automobile mileage. The company recorded the reimbursement 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 $2,095 b. Prepaid Insurance coverage of $699 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $165 per day. d. Prepaid rent of $2,625 expired during this 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1.200 f. Depreciation on the office equipment for January 1 through March 31 is $210. 9. The March 31 amount of merchandise inventory still available totals $584. 4. Prepare an income statement from the adjusted trial balance in part 3) for the three months ended March 31, 2018. Use a single- step format. List all expenses without differentiating between selling expenses and general and administrative expenses. (a) Use a single step format. List all expenses without differentiating between selling expenses and general and administrative expenses (6) Use a multiple-step format that begins with gross sales (service revenues plus gross product sales) and includes separate Required information 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 A Required 48 Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2018 (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 Computer services revenue Net sales Total revenues Expenses Depreciation expense-Office equipment $ 210 Depreciation expense Computer equipment 1 200 Wages expense 4290 Insurance expense 699 Rent expense 2.625 25,627 18.538 44.165 Prev so Required 4A Required 48 Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2018 (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. Show less BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Sales $ 44,907 Less: Sales discounts 42 Less: Sales returns and allowances 742 Net sales 44,165 Cost of goods sold 1.269 Gross profit 42,896 Expenses Selling expenses Wages expense 4.290 Advertising expense 560 Mileage expense 416 700 5.266 Total selling expenses General and administrative expenses Dencialin ang firmant 210 4. Prepare an income statement from the adjusted trial balance in part 3) for the three months ended March 31, 2018. Use a sin step format. List all expenses without differentiating between selling expenses and general and administrative expenses. (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