SP 4 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] 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. 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 (Numbers. 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. January 4 The company paid cash to Lyn Addie for five days ' work at the rate of $245 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 $23,500 cash in the company in exchange for more common stock. January 7 The company purchased $7,700 of merchandise from Kansas Corporation with termis of 1/10,n/30, foB shipping point, invoice dated January 7. January 9 The company received $2,828 cash from Gomez Company as fuli payment on its account. 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 $6,910 less the advance payment of $1,490. The company debited Unearned Computer Services Revenue for $1,490. January 13 The company sold merchandise with a retail value of $5,000 and a cost of $3,470 to Liu Corporation, invoice dated January 13. January 15 The company paid $740 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,200 cash from Delta Company for computer services 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 $700 to Liu Corporation and credited Liu's accounts receivable for that amount. January 22 The company received the balance due fron 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 $476. January 26 The company purchased $9,800 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 $4,620 cost for $5,940 on credit to KC, Incorporated, invoice dated January 26 . January 31 The company paid cash to Lyn Addie for 10 days' work at $245 per day. February 1 The company paid $2,685 cash to Hiltside Matl for another three months rent in advance. February 3 The company paid Kansas Corporation for the balance due, net of the cash February 5 The company pasid $420 cousedit from merchandise returned on January 24. February 11 February 5 only. February 11 The company received the balance due from Alex's Engineering Company for fees February 15 The company paid a $4,780 cash dividend. February 23 The company sold merchandise with a $2,610 cost for $3,400 on credit to delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $245 per day. February 27 The company reimbursed Santana Rey $352 cash for business automobile mileage. Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $245 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 $2,870 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 $910 cash for minor repairs to the company's computer. March 16 The company received $5,270 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $3,980 to Harris office Products, consisting of amounts created on December 15 (of $1,110) and March 8. March 24 The company billed Easy Leasing for $9,157 of computing services provided. March 25 The company sold merchandise with a $2,072 cost for $3,000 on credit to Wildcat Services, invoice dated March 25. March 30 The company sold merchandise with a $1,168 cost for $2,370 on credit to IFM Company, invoice dated March 30. March 31 The company reimbursed Santana Rey $256 cash for business automobile mileage. The company recorded the reimbursenent as "Mileage Expense." The following additional facts are avallable for preparing adjustments on March 31 prior to financial statement preparation. a. The March 31 amount of computer supplies still available totals $2,125. b. Prepaid Insurance coverage of $618 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $245 per day. d. Prepaid rent of $2,685 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,080. f. Depreciation on the office equipment for January 1 through March 31 is $350. 9. The March 31 amount of merchandise inventory still available totals $694. b. Prepaid Insurance coverage of $618 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $245 per day. d. Prepaid rent of $2,685 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,080. f. Depreciation on the office equipment for January 1 through March 31 is $350. g. The March 31 amount of merchandise inventory still avallable totals $694. SP 4 Serial Problem Part 5 (Algo) 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31, 2022 SP 4 Serial Problem Business Solutions (Algo) LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] 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. 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 (Numbers. 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. January 4 The company paid cash to Lyn Addie for five days ' work at the rate of $245 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 $23,500 cash in the company in exchange for more common stock. January 7 The company purchased $7,700 of merchandise from Kansas Corporation with termis of 1/10,n/30, foB shipping point, invoice dated January 7. January 9 The company received $2,828 cash from Gomez Company as fuli payment on its account. 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 $6,910 less the advance payment of $1,490. The company debited Unearned Computer Services Revenue for $1,490. January 13 The company sold merchandise with a retail value of $5,000 and a cost of $3,470 to Liu Corporation, invoice dated January 13. January 15 The company paid $740 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,200 cash from Delta Company for computer services 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 $700 to Liu Corporation and credited Liu's accounts receivable for that amount. January 22 The company received the balance due fron 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 $476. January 26 The company purchased $9,800 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 $4,620 cost for $5,940 on credit to KC, Incorporated, invoice dated January 26 . January 31 The company paid cash to Lyn Addie for 10 days' work at $245 per day. February 1 The company paid $2,685 cash to Hiltside Matl for another three months rent in advance. February 3 The company paid Kansas Corporation for the balance due, net of the cash February 5 The company pasid $420 cousedit from merchandise returned on January 24. February 11 February 5 only. February 11 The company received the balance due from Alex's Engineering Company for fees February 15 The company paid a $4,780 cash dividend. February 23 The company sold merchandise with a $2,610 cost for $3,400 on credit to delta Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $245 per day. February 27 The company reimbursed Santana Rey $352 cash for business automobile mileage. Company, invoice dated February 23. February 26 The company paid cash to Lyn Addie for eight days' work at $245 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 $2,870 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 $910 cash for minor repairs to the company's computer. March 16 The company received $5,270 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $3,980 to Harris office Products, consisting of amounts created on December 15 (of $1,110) and March 8. March 24 The company billed Easy Leasing for $9,157 of computing services provided. March 25 The company sold merchandise with a $2,072 cost for $3,000 on credit to Wildcat Services, invoice dated March 25. March 30 The company sold merchandise with a $1,168 cost for $2,370 on credit to IFM Company, invoice dated March 30. March 31 The company reimbursed Santana Rey $256 cash for business automobile mileage. The company recorded the reimbursenent as "Mileage Expense." The following additional facts are avallable for preparing adjustments on March 31 prior to financial statement preparation. a. The March 31 amount of computer supplies still available totals $2,125. b. Prepaid Insurance coverage of $618 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $245 per day. d. Prepaid rent of $2,685 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,080. f. Depreciation on the office equipment for January 1 through March 31 is $350. 9. The March 31 amount of merchandise inventory still available totals $694. b. Prepaid Insurance coverage of $618 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $245 per day. d. Prepaid rent of $2,685 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,080. f. Depreciation on the office equipment for January 1 through March 31 is $350. g. The March 31 amount of merchandise inventory still avallable totals $694. SP 4 Serial Problem Part 5 (Algo) 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31, 2022