The Rachel's Enterprises Solutions had the following balance sheet as of December 31, 2020. The transactions for the first three months of 2021 are also presented along with other information about specific accounts.

Rachel's Enterprises Solutions Incorporated

Balance Sheet

December 31, 2020

ASSETS			LIABILITIES
Cash	$ 37,000		Accounts Payable	$ 40,000
Marketable Securities	10,000		Wages Payable	10,800
Accounts Receivable	63,000		Taxes Payable	7,200
Uncollectible Accounts	-2,000		Short-Term Note Payable	30,000
Inventory	74,000		Interest Payable	2000
Supplies	4,000		Unearned Revenue	20,000
Prepaid Insurance	7,500		Unearned Consulting Rev.	5,000
Total Current Assets	$193,500		Total Current Liabilities	$ 115,000
Land	$111,500		Long-Term Notes Payable	$ 50,000
Equipment	217,000		Bonds Payable	100,000
Accumulated Depreciation	-97,000		Mortgage Payable	350,000
Building	590,000		Total Long-Term Liabilities	$500,000
Accumulated Depreciation	-110,000
Intangible Assets	60,000		STOCKHOLDER EQUITY
Total Long-Term Assets	$771,150		Capital Stock	$100,000
			Paid in Capital	140,000
			Retained Earnings	110,000
			Total Stockholders Equity	$350,000
Total Assets	$965,000		Total Liabilities & Equity	$965,000

AdditionalInformation

Accounts Receivable

The following table indicates the historical breakout of accounts receivable

Days	Current	30 to 60	60 to 90	Over 90
Percent of Balance	50%	30%	15%	5%
Percent Collectible	95%	90%	80%	60%

The company uses the gross method of recording all sales on accounts.

Marketable Securities

The interest rate earned on marketable securities is 7.0%.

Inventory

In 202x, the company had used the gross method to record inventory purchases on account.

Prepaid Insurance

A three-year insurance policy in the amount of $9,000 was purchased on July 1, 2020.

Equipment

Equipment is depreciated at an average amount of $3,500 per month.

Building

The current building was purchased on January 1, ten years ago and has an expected 40-year life at which time its salvage value will be $40,000.

Intangible Assets

Intangible assets were initially valued at $60,000 and are being depreciated over 30 years at $2,000 per year.

Short-Term Notes Payable

The one-year short-term note payable is due on March 1, 2021. The interest rate is 8.0% which is payable at maturity.

Long-Term Notes Payable

The long-term notes payable are due in ten years. The interest rate on the notes is 5.0%.

Bonds Payable

The bonds payable mature in twenty years. The interest rate on the bonds is 5.0%.

Mortgage Payable

The following amortization schedule can be used for the January, 2021 mortgage payment on the 4.0%, 30- year mortgage.

Month	Payment	Interest	Principal	Balance
January	$3,500	$2,063	$1,437	$320,000 $318,563
February	$3,500	$2,063	$1,437	$317,126
March	$3,500	$2,063	$1,437	$315,689

Capital Stock

The capital stock is common stock at $10 par value with 50,000 shares authorized, and 10,000 shares issued and outstanding.

Develop a single income statement representing January through March in good form for Rachel's Enterprise Solutions for the first three months of 2021. Federal Income Tax Rate is 21%.

3. Develop a single statement of retained earnings in good form as of March 31, 2021 for Rachel's Enterprise Solutions.

Rachel Enterprise solutions
Trial Balance
	Debit	Credit
Cash	109425
Petty Cash	1100
Marketable Securities	10000
Interest Recievable	175
Accounts Recievable	186000
Uncollectable Accounts		4083
Inventory	37800
Supplies	5000
Prepaid Insurance	6750
Prepaid Reent	22500
Land	111500
Equipment	177000
Accumulated Depreciation		82500
Building	941300
Accumulated Depreciation		113438
Intagiable Assets	59500
Accounts Payable		45500
Wages Payable		15500
Taxes Payable		8900
Short Term notes payable		0
Interest Payable		3875
Unearned Revenue		15000
Unearned Consulting Revenue		0
Long Term notes payable		50000
Bonds Payable		100000
Mortgage Payable		595689
Capital Stock		190000
Paid in Capital		140000
retained earnings		110000
Treasury stock	7000
Cash Dividends	10500
Purchase discount		2420
sale revenue		381000
COGS	174200
Consulting Service Revenue		125000
Purchase Freight	2700
Equipment rent revenue		20000
Sale Discount	3900
Salary Expense	45500
tax Expenses	19900
Repairs Expense	6000
Advertising Expense	5000
Interest Expense	11064
sale freight	1200
property taxes	4100
Sales return and Allownaces	6700
Interest Income		425
Entertainment Expense	250
Traveling Expenses	265
Debt misc. Expense	100
Postage Expense	240
Legal Expense	1500
Milage Expense	2500
Gain on Sale of Equipment		2500
loss of disposal of equipment	2800
Depreciation Expense	13938
Amorization Expences	500
Bad Debt Expenses	2083
Supplies expense	7590
Rent expense	7500
insurance expense	750
Totals	2005830	2005830