The following additional facts are available for preparing Computer Solutions adjustments on March 31 prior to financial statement preparation: a. The March 31 amount of computer supplies still available totals $1134. b. Three more months have expired since the company purchased its annual insurance policy at a $2,340 cost for 12 months of coverage c. Lyn Addie has not been paid for seven days of work at the rate of $150 per day. d. Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $875. e. Depreciation on the computer equipment for January 1 through March 31 is $950 f. Depreciation on the office equipment for January 1 through March 31 is $125. g. The March 31 amount of merchandise inventory still available totals $760. The purpose of part 4 is to prepare quarterly financial statements for Computer Solutions through March 31, 2020. These statements may be prepared using Excel or by hand. Follow the instructions below: 1. Open your file Your Name ACCT305_PS3 and save as Your Name_ACCT305 PS4 2. Before starting Part 4 you should ensure that your general ledger balances agree with the March 31, 2020 balances provided in this folder. 3. (2 points) Using the Unadjusted trial balance you prepared in part 3, prepare a partial work sheet in Excel consisting of the first seven columns that includes the unadjusted trial balance, the March 31 adjustments a) through (9), and the 3. (2 points) Using the Unadjusted trial balance you prepared in part 3, prepare a partial work sheet in Excel consisting of the first seven columns that includes the unadjusted trial balance, the March 31 adjustments (a) through (9), and the adjusted trial balance. Use formulas where applicable. Do not prepare closing entries and do not foumalize the adjustments or post them to the ledger. 4. (8 points) Prepare the following financial statements: a. Income statement for the three months ended March 31, 2020. Use a single-step format b. Statement of retained eamings for the three months ended March 31, 2020 o Classified balance sheet (from the adjusted trial balance) as of March 31, 2020 d. Statement of cash flows using the indirect method for the three months ended March 31, 2020. Owner Raymond Santana contributed $25,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,500 in cash dividends. A B E G H D unadjusted trial balance Debit Credit 75,979.00 2 3 No. 101 5 106,1 1062 106.3 3,000.00 6 7 8,045.00 5,220.00 106.4 106.5 106.6 9 10 106.7 106.8 + 11 12 6,800.00 Account Cash A/R - Alex's Engineering Co. A/R Wildcat Services AVR-West Leasing A/R-IFM Co. NR-Liu Corp A/R -Gomez Co. A/R-Delta Co. A/R-KC, Inc AVR-Dream, Inc Merchandise inventory Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation Office equipment Computer equipment Accumulated 106.9 13 119 126 128 14 15 16 17 941.00 2,580.00 1,755.00 3,500.00 5,000.00 131 163 164 18 19 125.00 167 19,000.00 General Journal General Ledger 2019 Trial Balance 2020 Trial Balance Income Statemen Type here to search o Et D G H A 168 20 21 201 22 210 236 307 318 319 23 24 25 26 27 28 29 30 31 403 413 Accumulated depreciation - Computer equipment 950.00 Accounts payable Wapes payable Unearned computer Services revenue Common stock 104,000.00 Retained earnings 6,879.00 Dividends 4,500.00 Computer services revenue 24,505.00 Sales 20,640.00 Sales returns and allowances 500.00 Sales discounts 49.00 Cost of goods sold 15,400.00 Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense 2,850.00 Insurance expense Rent exnense General Journal General Ledger 2019 Trial Balance 414 415 502 612 32 613 33 34 35 36 623 637 640 2020 Trial Balance Income Statement 1 Type here to search O A D E G 29 414 30 500.00 49.00 415 502 31 15,400.00 612 32 33 613 TEST 623 B Sales returns and allowances Sales discounts Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense--Computer Income Summary Totals 34 35 36 37 38 39 40 2,850.00 637 640 652 655 676 677 684 700.00 320.00 960.00 41 42 43 44 45 46 157,099.00 157,099.00 48 General Journal General Ledger 2019 Trial Balance 2020 Trial Balance Income HE Type here to search