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 D 3,000 0 2.66 0 0 NO Account Title 101 Cash 106.1 Alex's ngineering Co. 105.2 Wildcat Services 106.) tasy Lensing 106.4 LPX CO 106.5 Liu Corp. 106. Gomes Co. 105.7 Delta co 106. RC, Inc. 106.) Deeon, Inc. 319 Merchandise inventory 120 Computer supplies 120 Prepaid Lange 131 Prepaid rent 163 ottice sunt 164 Acculated depreciation office equipment 167 Computer equat 16 201 Accumulated depreciation Computer giant 310 Month payable Wages payable 236 Urned computer serveren 301 ley, Capital 102 hey, withdrawal 403 Det beviens ro 613 Bale returns and also tas 503 Custor goods 513 Depressie quant Dersone.com 0 580 1,665 B25 8,000 1 40 20,000 1.250 1.100 500 80.360 0 0 0 0

G Search or type & 2 3 4 8 9 W E R T Y S D F G H J K X C V B N M . E cnant or accounts. Credit Debit $48,372 0 0 0 3,000 0 2,668 0 OOO 580 1,665 825 8,000 400 20,000 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 Pre rent 163 office equipment 164 Accumulated depreciation office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue S. Rey, Capital 302 S. Rey, Withdrawals 403 Computer services revenue 413 Sales 414 Sales returns and allowances 415 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 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses Repairs expense-Computer 1,250 1. 100 500 1,500 80 1360 301 0 In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 110.430, 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 $125 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Bey invested an additional $25,000 cash in the company. 7 The company purchased 55,000 of merchandise from Kansas Cozp. with terms of 1/10, 1/30, POB shipping point, invoice dated January 7. The company received $2,668 cash from Gomes co. a full payment on to accoont. 11 the company completed a five-day project for Alex's Engineering Co. and billed it 55,500, which is the total price of 57.000 less the advance payment of $1,500. The company debited Onearned computer Service levende for $1,500. 1) The company sold merchandise with a retail value of $5,200 and a cost of $3,560 to Liu Corp.. invoice dated January 13. 15 The company paid $600 cash tor treight charges on the merchandise percased on January 7. 16 The company received 58,000 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 cedeation allowance) of $500 to L Corp., and credited to accounta receivable for that amount. 3 The company received the balance due tron La Corp.net of the discount and the allowance. 24 The company returned defective merchandise to Kansas Corp. Ad accepted a credit against future purchases debited accounts payable. The defective merchandise invoice cost, net of the discount, was $495. 26 The The company purchased $3,000 of merchandise from Kane Corp. With term of 1/10, 1/30, Pos destination invoice dated January 26, 26 The company sold seconde with 56,640 cost for $5,000 credit to xe, the invoice dated JAY 25 The depan peld cash to Tyn ddle for day work $125 per day Pub The company paid $2,695 cash to ideal for the three month Tent in advance the company pod Kansas Corp. for the balance du net of the cash discount, lean the 3494 credit to merchandise returned on Jany 26. 3 The company and 3600 sa to terms advertisement to appear on Tery only: 11 They received the balances from Alex. Ingineering Co. for fee willed on January 11. 15 Bantens hy with $4,600 cash from the company for p 23 e company old wechat 1.560 for 53.320 on credit to Delta convoca dated bary 23 26 The company paid holy Adde for eight day work at 125 days 37 The spred santan By 5112 torres automobile lege. The company recorded the to spesso HAE . the creat7.750 or comotar w from Harris of Products and with an Search or type URL $ 2 3 4 5 7 8 9 W E R . Y U P. S D F G . K L January 26. 31 The company paid cash to Lyn Addie for 10 days' work at $125 per day. Feb. 1. The company paid $2,475 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 $496 credit from merchandise returned on January 24. 5 The company paid $600 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. 15 Santana Rey withdrew 54,800 cash from the company for personal use. 23 The company sold merchandise with a $2,660 cost for $3,220 on credit to Delta co., Invoice dated Terry 23. 26 the company paid cash to Lyn Addle for eight days' work at $125 per day. 27 The company reimbursed Santana Roy $192 for business automobile alleage. The company recorded the remboursement as Mileage Expense." Mar. The company purchased $2,730 of computer supplies from Maris Office Products on credit with terms of a/30, Ton destination, invoice dated March B. 9 The company received the balance due from Delta Co. for merchandise sold on February 2). 11 The company paid $960 cash for minor repairs to the company's computer 16 The company received 15,260 cash from Dream, The tor competing services provided. 19. The company paid the full amount due of $5,830 to larria office Products conting of anonta created on December 15 (OE $1,100) and March 3. 24 The company billed Tasy Leasing for $9.047 of computing services provided 25 The company told mechandise with a $2.002 coat for $2,100 on credit to Wildcat Services, Invoice dated March 25 10 The company sold merchandise with a $1,048 cost for $2,220 on credit to In Company, invoice dated March 10 31 The company reimbursed Santana Ray $128 for business automobile mileage. The company recorded the reimbursement au long 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 $2.005. 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 periode . Depreciation on the computer equipment for January 1 through March 31 is $1250 1. Depreciation on the office equipment for January through March 31 is $400 The March 31 amount of merchandise inventory still available totals $704 a Pranaro animo mom the rain for the the months nart Mer 1207 c Search or type URL S 3 4 5 6 7 8 9 0 W E R . Y U 0 P F G K . 4. Prepare an income statement from the adjusted trial balance in part 3) for the three months ended March 31, 2020 (9) 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, seling 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 AA Required 43 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 selling expenses: Wages Expense, Mileage Expense, and Advertising Expense. Categorize the remaining expenses as general and administrative Show less BUSINESS SOLUTIONS Income tamen For Threat Ended March 31, 2020 0 Nos 0 or type URL 0 2 3 4 36 5 6 7 8 W E R. T . Y 0 P S D F G H J K Saved Required information Income Statement For Three Months Ended March 31, 2020 Net sales 0 Expenses Selling expenses Total selling expenses General and administrative expenses 0 Total general and administrative compenses Total expenses o 0 5 0