[The following information applies to the questions displayed below] 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. Sarrtana 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 compony 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 (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 dayn work at the rate of $195 per day. Tour of the five days relate to wages payable that were acerued in the prior year. 5 Santana rey invested an additionat $24,300 cash in the company in exchange for more comon atock. 7. The conpany purchased $7,600 of morchandise from Kansas corp. With terns of 1/10, n/30, FOB ahipping point, Involee dated January 7. 9 The company received $2,788 cash from comez co. as fu11 payment on its account. 11 The company conpleted a five-day project for Alex's Engineering co. and billed it $5,330, which is the total price of $6,650 iess the advance payment of $1,320. The company debited Unearned conputer Services Revenue for $1,320. 13 the company sold nerchandise with a retail value of $4,800 and a cost of $3,420 to fik Corp., invoice dated January 13. 15 The company paid $740 cash for freight charges on the merchandise purchased on January 7. 16 the company received $4,150 cash from Delte co. for conputer services provided. 17 The company paid Kansan Corp. for the involce dated January 7, net of the discount. 20 The company gave a price reduction (allowanee) of $700 to Liu Corp.t and exedited Liu's aceounta receivable for that amount. 22 The company received the balance dse from tifu corp.e net of the discount and the allowance. 24 The company returnes defective merchandise to Kansas corp. and accepted a eredit against future purchases (debited decounts payable). The defective merchandise invoice cost, net of the discount, was $476. 26 The company purchased $9,000 of morchandise from Kansas Corp. With torns of 1/10,n/30,FO. destination, involce dated January 26 . 26 The company sold merchandise with a $4,550 cost for $5,940 on credit to kC, Inc., involce dated January 26 . 31 The company paid cash to Lyn Addie for 10 days' work at $195 per day. Feb. I 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, lass the $476 eredit 22 The company recelved the balanee due from tulu Corpir, nat of the disdoung and thin altowance. 24 The company returned deteetive farahandife to Kansat Corp, and neoepted a eredit agaifite tuture pizehasen (debited aecounts payable). The detective merohandiee involee eost, het et the disciount, MaH \$476. dentination, invotee dated Jantary 26 , 26 The oompany nold merehandise yith a 54,550 dost for 55,940 on eredit to kC, tno, imwolea dated Jenuary 26. Fe. 31 the dampany paid canh to tyzi Addie for 10 dayat work at 5195 par, day, 1 The company paid 52,475 cant te Hitilsto Matl for anoeher theee monthat rent in advarge, Tros company paid Kanuae Corp. tor the balance due, het of the dash diaeount, less the 0476 dredit. 4. Fhe merehandine returned on January 24. 11 The company recedved the balance due Eroef Alex a finglneering Co. for feta billed on January 13. 15 The conpany paid a 34,760 eash dividend. 27 The company sold merohandiee with a 52,530 eest for 63,350 on oredit. Lo Delta Co.. Involee tated Vebruary 23 . 26 The company paid cash to Lyn Adde for efght daya' work at. 8195 per day. 27 The eompany reimburaed Jantana fey 5120 oash for buafaeas autoneblie infleage. The coapany racorded the reimburaement as "Mileage tixpense. " Mar. H The company parehaned 52,420 of computer aypplisea fron Harris office producte on eredit with terna de n/Jo, Tob destination, Lnvoice dated Kareh 8 . 9 The company recelved the balance due fron Delta Co. for merohandile lold on rabruary 2J. 11 The company pald 3950 canh tor ninor repairi to the conpany's computex. 15 The eompany received 55,430 cash fron Dream, Ise., for eomputing eervices provided. 19 The dompany paid the fuli anount due of 54,050 to lfartis office products, eonsinting of anount b ereated on Decenher 15 (of 51,2j0 ) ard Mareh. H. 24 The eompany bl11ed Basy Leasing for 59,147 of conputing texyices provided. 25 The eompany sold recchandise with a 52,052 cost for 52,950 on credit to 1 ideat serviees. involee dated Nareb 25. 30 The company sold merchandise with a 51,178 eost for 62,38d on eredit to iry coxpany, Involed dated Mareh 10. 31 The company reimburaed Santana Rey 3160 cash for buainess automobile mileage. Fbe coapany recorded the reimburaenent as "Milleage zxpense." 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 avallable totals 52.035. Y. 17ne Narch 51 amount of merchandise inventory still available totals $504. Part 4 4. Prepare an income statement (trom the adjusted trial balance in port 3) for the thee months ended March 31,2020. (a) Use a single-step format. List all expenses without difforentiating between seling expenses and general ond administrative expenses. (b) Use a multiple-step format that begins with gross sales (service revenues pius gross procuct sales) and includes separate categories for net sales, cost of goods sold, seling expenses, and general and administrative expenses. Categorize the foliowing accounts as seling expenses: Wages Expense, Mileage Expense, and Advertising Expense. Categorize the temaining expenses os general and administrative. Complete this question by entering your answers in the tabs below. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31,2020. (a) Use a single-step format. List all expenses without differentiating between selling expenses and general and administrative expenses. (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 31,2020. (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. 3. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the ac trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. Saved (1) Required information Required information (1) Required information Saved Required information [The following information applies to the questions displayed below] 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. Sarrtana 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 compony 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 (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 dayn work at the rate of $195 per day. Tour of the five days relate to wages payable that were acerued in the prior year. 5 Santana rey invested an additionat $24,300 cash in the company in exchange for more comon atock. 7. The conpany purchased $7,600 of morchandise from Kansas corp. With terns of 1/10, n/30, FOB ahipping point, Involee dated January 7. 9 The company received $2,788 cash from comez co. as fu11 payment on its account. 11 The company conpleted a five-day project for Alex's Engineering co. and billed it $5,330, which is the total price of $6,650 iess the advance payment of $1,320. The company debited Unearned conputer Services Revenue for $1,320. 13 the company sold nerchandise with a retail value of $4,800 and a cost of $3,420 to fik Corp., invoice dated January 13. 15 The company paid $740 cash for freight charges on the merchandise purchased on January 7. 16 the company received $4,150 cash from Delte co. for conputer services provided. 17 The company paid Kansan Corp. for the involce dated January 7, net of the discount. 20 The company gave a price reduction (allowanee) of $700 to Liu Corp.t and exedited Liu's aceounta receivable for that amount. 22 The company received the balance dse from tifu corp.e net of the discount and the allowance. 24 The company returnes defective merchandise to Kansas corp. and accepted a eredit against future purchases (debited decounts payable). The defective merchandise invoice cost, net of the discount, was $476. 26 The company purchased $9,000 of morchandise from Kansas Corp. With torns of 1/10,n/30,FO. destination, involce dated January 26 . 26 The company sold merchandise with a $4,550 cost for $5,940 on credit to kC, Inc., involce dated January 26 . 31 The company paid cash to Lyn Addie for 10 days' work at $195 per day. Feb. I 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, lass the $476 eredit 22 The company recelved the balanee due from tulu Corpir, nat of the disdoung and thin altowance. 24 The company returned deteetive farahandife to Kansat Corp, and neoepted a eredit agaifite tuture pizehasen (debited aecounts payable). The detective merohandiee involee eost, het et the disciount, MaH \$476. dentination, invotee dated Jantary 26 , 26 The oompany nold merehandise yith a 54,550 dost for 55,940 on eredit to kC, tno, imwolea dated Jenuary 26. Fe. 31 the dampany paid canh to tyzi Addie for 10 dayat work at 5195 par, day, 1 The company paid 52,475 cant te Hitilsto Matl for anoeher theee monthat rent in advarge, Tros company paid Kanuae Corp. tor the balance due, het of the dash diaeount, less the 0476 dredit. 4. Fhe merehandine returned on January 24. 11 The company recedved the balance due Eroef Alex a finglneering Co. for feta billed on January 13. 15 The conpany paid a 34,760 eash dividend. 27 The company sold merohandiee with a 52,530 eest for 63,350 on oredit. Lo Delta Co.. Involee tated Vebruary 23 . 26 The company paid cash to Lyn Adde for efght daya' work at. 8195 per day. 27 The eompany reimburaed Jantana fey 5120 oash for buafaeas autoneblie infleage. The coapany racorded the reimburaement as "Mileage tixpense. " Mar. H The company parehaned 52,420 of computer aypplisea fron Harris office producte on eredit with terna de n/Jo, Tob destination, Lnvoice dated Kareh 8 . 9 The company recelved the balance due fron Delta Co. for merohandile lold on rabruary 2J. 11 The company pald 3950 canh tor ninor repairi to the conpany's computex. 15 The eompany received 55,430 cash fron Dream, Ise., for eomputing eervices provided. 19 The dompany paid the fuli anount due of 54,050 to lfartis office products, eonsinting of anount b ereated on Decenher 15 (of 51,2j0 ) ard Mareh. H. 24 The eompany bl11ed Basy Leasing for 59,147 of conputing texyices provided. 25 The eompany sold recchandise with a 52,052 cost for 52,950 on credit to 1 ideat serviees. involee dated Nareb 25. 30 The company sold merchandise with a 51,178 eost for 62,38d on eredit to iry coxpany, Involed dated Mareh 10. 31 The company reimburaed Santana Rey 3160 cash for buainess automobile mileage. Fbe coapany recorded the reimburaenent as "Milleage zxpense." 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 avallable totals 52.035. Y. 17ne Narch 51 amount of merchandise inventory still available totals $504. Part 4 4. Prepare an income statement (trom the adjusted trial balance in port 3) for the thee months ended March 31,2020. (a) Use a single-step format. List all expenses without difforentiating between seling expenses and general ond administrative expenses. (b) Use a multiple-step format that begins with gross sales (service revenues pius gross procuct sales) and includes separate categories for net sales, cost of goods sold, seling expenses, and general and administrative expenses. Categorize the foliowing accounts as seling expenses: Wages Expense, Mileage Expense, and Advertising Expense. Categorize the temaining expenses os general and administrative. Complete this question by entering your answers in the tabs below. Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31,2020. (a) Use a single-step format. List all expenses without differentiating between selling expenses and general and administrative expenses. (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 31,2020. (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. 3. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the ac trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger. Saved (1) Required information Required information (1) Required information Saved Required information