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. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2021. 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. Number 101 Cash 106.1 106.2 106.3 Account Title Alex's Engineering Company Wildcat Services Easy Leasing Debit Credit $ 48,392 0 0 106.4 IFM Company 3,180 106.5 Liu Corporation 0 106.6 Gomez Company 2,688 106.7 Delta Company 0 106.8 KC, Incorporated 0 106.9 119 126 Dream, Incorporated Computer supplies 0 Merchandise inventory 0 700 128 Prepaid insurance 2,016 131 Prepaid rent 905 163 Office equipment 8,150 164 Accumulated depreciation-office equipment $ 380 167 Computer equipment 20,900 168 Accumulated depreciation-Computer equipment 1,060 201 Accounts payable 210 Wages payable 236 Unearned computer services revenue 301 Common stock 318 319 403 413 Sales 414 415 Sales discounts 502 612 613 623 637 640 652 655 676 Mileage expense 677 Retained earnings Dividends Computer services reven Sales returns and allowances Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Miscellaneous expenses 1,220 580 1,310 74,221 8,160 venue > > 0 0 684 Repairs expense-Computer O O O O O o o 0 0 0 0 January 4 The company paid cash to Lyn Addie for five days' work at the rate of $145 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 $24,000 cash in the company in exchange for more common stock. January 7 The company purchased $5,900 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. January 9 The company received $2,688 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 $5,420, which is the total price of $6,730 less the advance payment of $1,310. The company debited Unearned Computer Services Revenue for $1,310. January 13 The company sold merchandise with a retail value of $4,300 and a cost of $3,480 to Liu Corporation, invoice dated January 13. January 15 The company paid $790 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,060 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 $400 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 $9,200 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB destination, invoice dated January 26. January 26 The company sold merchandise with a $4,480 cost for $5,880 on credit to KC, Incorporated, invoice dated January 26. January 31 The company paid cash to Lyn Addie for 10 days' work at $145 per day. February 1 The company paid $2,715 cash to Hillside Mall for another three months' rent in advance. February 3 The company 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 $580 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 $4,780 cash dividend. February 23 February 26 The company sold merchandise with a $2,540 cost for $3,280 on credit to Delta Company, invoice dated February 23. The company paid cash to Lyn Addie for eight days' work at $145 per day. February 27 The company reimbursed Santana Rey $224 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,910 of computer supplies from Harris Office Products on credit with terms 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 $780 cash for minor repairs to the company's computer. March 16 The company received $5,440 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $4,130 to Harris Office Products, consisting of amounts created on December 15 (of $1,220) and March 8. March 24 The company billed Easy Leasing for $9,187 of computing services provided. March 25 The company sold merchandise with a $2,152 cost for $2,920 on credit to Wildcat Services, invoice dated March 25. March 30 The company sold merchandise with a $1,188 cost for $2,270 on credit to IFM Company, invoice dated March 30. March 31 The company reimbursed Santana Rey $352 cash 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 $2,005. b. Prepaid Insurance coverage of $672 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $145 per day. d. Prepaid rent of $2,715 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,060. f. Depreciation on the office equipment for January 1 through March 31 is $380. g. The March 31 amount of merchandise inventory still available totals $604. 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. Revenues Total revenues Expenses Total expenses BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 Net sales Expenses Selling expenses BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2022 Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses