Santana Rey created Business Solutions on October 1. 2020. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modifled to set up separate accounts for each customet. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2020. 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 Recelvable account. This change allows the company to continue using the existing chart of accounts. January 4 The company paid cash to Lyn Addie for five days' work at the rate of $195 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 $24,200 cash in the company in exchange for more common stock. January 7 The company purchased $7,200 of merchandise fron Kansas Corporation with terms of 1/10,n/30, FOB shipping point, invoice dated January 7. January 9 The company received $2,838 cash from Gomez company as full payment on its account. January 11 The company completed a five-day project for Alex's Engineering Company and billed it \$5, 490, which is the total price of $6,940 less the advance payment of $1,450. The company debited Unearned computer Services Revenue for $1,450. January 13 The company sold merchandise with a retail value of $4,300 and a cost of $3,500 to Liu corporation, invoice dated January 13. January 15 The company paid $640 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,10e cash from Delta Company for computer 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 \$6ee to Liu Corporation and credited Liu's accounts receivable for that amount. January 22 The company received the balance due from Liu corporation, net of the discount and the allowance. January 24 The company returned defective merchandise to Kansas corporation and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $486. January 26 The company purchased $9,600 of merchandise from Kansas Corporation with terms of 1/10, n/3e, foB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,490 cost for $5,900 on credit to KC, incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days' work at $195 per day. February 1 The company paid $2,535 cash to Hillside Mall for another three months' rent in advance. February 3 The coepany paid Kansas corporation for the balance due, net of the cash discount, less the $486 credit from merchandise returned on January 24. February 5 The company paid $470 cash to Facebook for an advertisement to appear on February 5 only. February 11 The company received the balance due from Alex's Engineering company for fees billed on January 11. February 15 The company paid a $4,740 cash dividend. February 23 The company sold merchandise with a $2,540 cost for $3,260 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for elght days' work at $195 per day. February 27 The company reimbursed Santana Rey $352 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,780 of computer supplies from Harris office Products on credit with terns of n/30, FOB destination, invoice dated March 8. March. 9 The company received the balance due from Delta Company for merchandise sold on February 23. March 11 The company paid $940 cash for minor repairs to the company's computer. March 16 The company received $5,328 cash from Drean, Incorporated, for computing services provided. March 19 The company paid the full amount due of $3,890 to Harris office Products, consisting of anounts created on December 15 (of $1,110 ) and March 8 . March 24 The company billed Easy Leasing for $9,847 of computing services provided. March 25 The company sold merchandise with a $2,882 cost for $2,840 on credit to wildcat 5ervices, invoice dated March 25. March 30 The company sold merchandise with a $1,238 cost for $2,370 on credit to IFM company, involce dated March 30. March 31 The company reimbursed Santana Rey $128 cash for business automobile mileage. The company recorded the reimbursenent as "Mileage Expense." Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2021. (a) Use a single-step format. List all expenses without differentiating between selling expenses and general and administrative expenses. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31,2021 . (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. Santana Rey created Business Solutions on October 1. 2020. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modifled to set up separate accounts for each customet. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2020. 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 Recelvable account. This change allows the company to continue using the existing chart of accounts. January 4 The company paid cash to Lyn Addie for five days' work at the rate of $195 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 $24,200 cash in the company in exchange for more common stock. January 7 The company purchased $7,200 of merchandise fron Kansas Corporation with terms of 1/10,n/30, FOB shipping point, invoice dated January 7. January 9 The company received $2,838 cash from Gomez company as full payment on its account. January 11 The company completed a five-day project for Alex's Engineering Company and billed it \$5, 490, which is the total price of $6,940 less the advance payment of $1,450. The company debited Unearned computer Services Revenue for $1,450. January 13 The company sold merchandise with a retail value of $4,300 and a cost of $3,500 to Liu corporation, invoice dated January 13. January 15 The company paid $640 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,10e cash from Delta Company for computer 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 \$6ee to Liu Corporation and credited Liu's accounts receivable for that amount. January 22 The company received the balance due from Liu corporation, net of the discount and the allowance. January 24 The company returned defective merchandise to Kansas corporation and accepted a credit against future purchases (debited accounts payable). The defective merchandise invoice cost, net of the discount, was $486. January 26 The company purchased $9,600 of merchandise from Kansas Corporation with terms of 1/10, n/3e, foB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,490 cost for $5,900 on credit to KC, incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days' work at $195 per day. February 1 The company paid $2,535 cash to Hillside Mall for another three months' rent in advance. February 3 The coepany paid Kansas corporation for the balance due, net of the cash discount, less the $486 credit from merchandise returned on January 24. February 5 The company paid $470 cash to Facebook for an advertisement to appear on February 5 only. February 11 The company received the balance due from Alex's Engineering company for fees billed on January 11. February 15 The company paid a $4,740 cash dividend. February 23 The company sold merchandise with a $2,540 cost for $3,260 on credit to Delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for elght days' work at $195 per day. February 27 The company reimbursed Santana Rey $352 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,780 of computer supplies from Harris office Products on credit with terns of n/30, FOB destination, invoice dated March 8. March. 9 The company received the balance due from Delta Company for merchandise sold on February 23. March 11 The company paid $940 cash for minor repairs to the company's computer. March 16 The company received $5,328 cash from Drean, Incorporated, for computing services provided. March 19 The company paid the full amount due of $3,890 to Harris office Products, consisting of anounts created on December 15 (of $1,110 ) and March 8 . March 24 The company billed Easy Leasing for $9,847 of computing services provided. March 25 The company sold merchandise with a $2,882 cost for $2,840 on credit to wildcat 5ervices, invoice dated March 25. March 30 The company sold merchandise with a $1,238 cost for $2,370 on credit to IFM company, involce dated March 30. March 31 The company reimbursed Santana Rey $128 cash for business automobile mileage. The company recorded the reimbursenent as "Mileage Expense." Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2021. (a) Use a single-step format. List all expenses without differentiating between selling expenses and general and administrative expenses. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31,2021 . (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