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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. Janvary 4 the company paid cash to tyn Addle for five dayn work at the rate of $125 per day, Four of the five days relate to vages payable that were acerued in the prior year. Jandary 5 fantana Rey invested an adidtional 525 , 0o0 cash in the coepaky In exchasge for more concon steok. Janoary 7 The eompany purehased 55 , 100 of merehasdise fron Kansan Corporation with terks of 1/10, n/36, ros shipping point, invoice dated January 7 . Janaary 9 the company received $2,668 cash tron comed company ai ful1 payment on its aceount. Jasdary 11 The eonpany completed a five-day projeet for Alex'i ingineering coepany apy bi lled it ss, 500 , which is the total price of 57,000 less the advance payment of 51,506 , that eeepany debited Unearned conputer serviees Revenue for $1,500. January 13 The conpany aold merehandise with a retail value of 55,200 and a cost of $3,560 to Lis corporation, invoice dated January 13. January 15 The eompany paid $600 caih for freight chargen on the merchandise purchased on January 7. January 16 The eempany received $4,000 cash from belta coepany for computer services provided. January 17 The cenpany paid Kansas Corporation for the lnvoice dated January 7 . net of the discount. January 20 the conpany gave a price redection (allouance) of ssoe to Liv Corporation and eredited Iiu's accounta receivable for that anount. January 22 The company received the balance dise fron Hu corporation, net of the discount and the allowance. January 24 The company returned defective merchandise to Kansas corporation and aceepted a credit against future purchases (debited accounts payable). The defective nerchandise involce cost, net of the discount, was 5496 . January 26 . The company porchased $9,000 of perchandise fron Kansas Corporation with terns of 1/10, n/30, Fob deatination, invoice dated January 26. January 4 The company paid cash to Iyn Addie for five day" work at the rate of $125 per day, Four of the five days relate to wage payable that were accrued in the prior year. January 5 Santana Rey invested an additional $25,000 cash in the company in exchange for more cormon stock. January 7 The company parchased $5,800 of merchandise from Kansas corporation with terms of 1/10, n/30, FoB bhipping point, invoice dated January 7. January 9 The company received $2,668 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, 500, which is the total price of $7,000 less the advance payment of $1,500. The company debited Unearned Computer Services Revenue for $1,500. January 13 The company sold merehandise with a retail value of $5,200 and a cost of $3,560 to Liu Corporation, invoice dated January 13. January 15 The company paid $600 cash for freight charges on the merchandise parchased on January 7 . January 16 The company received $4,000 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 $500 to fiu corporation and credited tiu's accounts receivable for that amount. January 22 The company received the balance due from tu corporation, net of the discount and the allowance. January 24 The coepany returned defective merchandise to kansas corporation and accepted a eredit against future purchasen (debited accounts payable). The defective merchandise invoice cost, net or the discount, was $496. January 26 The company purchased $9,000 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 $4,640 cont for $5,800 on eredit to kc, Incorporated, invoice dated January 26 January 31 The company paid cash to Lyn Nddie for 10 days" work at $125 per day. February 1 The coepany paid $2,475 cash to ili 11 side 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 $496. credit from merehandise returned on January 24. February 5 The conpany paid $600 cash to Pacebook for an adverti genent to appear on February 5 only. Pebruary 11 The conpany received the balance due from Alex's Engineering Conpany for fees billed on January 11. February 15 The conpany paid a $4,800 cash dividend. February 23 The company sold merchandise with a $2,660 cost for $3,220 on eredit to Delta Conpany, invoice dated February 23. February 26 The company paid cash to Iyn Addie for eight days' work at $125 per day. February 27 The company reimbursed Santana Mey $192 cash for business automobile mileage. The conpany recorded the reimbursement as "Mileage Expense." Tebruary 27 the cenpaay reimburted santana Mey $142 cash for bubiness aatomobile nilleage. rhe company recorded the reimbursement as "Nileaqe Expense." March 8 The company purchased 52,730 of conputer supplies from Harria office producta on eredit with terms of n/30, Pos destination, involice dated March 8 . Karch 9 The company rocedved the balance doe fron belta Cospany for nerehasdise sold on rebruary 23. Mareh 11 the eonpany poid $960 canh for minor fepaire to the conpany's conputer. Mareh 16 The conpany received $5,260 eash frow prens, Incorporated, for coeputing anvices provided. March 19 The company poid the full amount due of $3,830 to Harris oftice products, consiating of amounts created on Decerber 15 (of $1,100 ) and Harch 3 . Mareh 24 the company billed Easy Leasing for 53,047 of cerputing services provided. Harch 25 The cempeay sold merchandise witb a $2,002 cost for $2,300 on eredit to wildcat serviees, Involee dated Mareh 25 . March 30 The eeepany sold perehandine vith a 51,04 cost for $2,220 an eredit to IrM Ceepany; invoice dated Mareh 30 . March 31 The company reimbursed Santana Rey $128 canh fog babineas autanobile mileage. Fbe eompany recorded the reimburmenent os "Nileage ixpenee." 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 stil avallable totals $2,005. b. Prepaid Insurance coverage of $555 expired during this three-month period c. Lyn Addie has not been paid for seven days of work at the rate of $125 per day. d. Prepaid rent of $2,475 expired during this three-month period e. Depreciation on the computer equipment for January 1 through March 31 is $1,250. t. Depreciation on the office equipment for January 1 through March 31 is $400. 9. The March 31 amount of merchandise inventory still avallable totals $704 SP 4 Serial Problem Part 5 (Static) SP 4 Serial Problem Part 5 (Static) 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31,2022 . 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31,2022 . (Report Accounts receivable as is single amount) 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 transaons for January through March follow. January 4 The company paid cash to Lyn Addie for five days work at the rate of $125 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 $25,000 cash in the company in exchange for more common stock. January 7 The company purchased $5,800 of merchandise from Kansas Corporation with terms of 1/10, n/30, FOB shipping point, invoice dated January 7. January 9 The company received $2,668 cash from comez company as ful1 payment on its account. January 11 The coupany completed a five-day project for Alex'B Engineering Company and billed it \$5,500, which is the total price of $7,000 less the advance payment of $1,500. The conpany debited Unearned Computer Services Revenue for $1,500. January 13 The company sold merchandise with a retail value of $5,200 and a cost of $3,560 to tiu Corporation, invoice dated January 13. January 15 The company paid $600 cash for freight charges on the merchandise purchased on January 7. January 16 The company received $4,000 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 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 \$500 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 diacount 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 $496. January 26 The company purchased $9,000 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 $4,640 cost for $5,800 on credit to kC, Incorporated, invoice dated January 26 January 31 The company paid eash to Lyn Addie for 10 days' work at $125 per day. February 1 The company paid $2,475 cash to Hi1lside Mall for another three months' rent in advance. February 3 The company pald Kansas Corporation for the balance due, not of the cash discount, less the \$496 crodit from merchandise returned on January 24 . February 5 The company paid $600 cash to Facebook for an advertisement to appear on February 5 only. February 11 The company recelved the balance due from Alex's Engineering Company for fees billed on January 11. February 15 The company paid a $4,800 cash dividend. February 23 The company sold merchandise with a $2,660 cost for $3,220 on credit to Delta company, invoice dated February 23 . February 26 The company paid cash to Lyn Addie for eight days' work at \$125 per day. February 27 The company reimbursed Santana Rey $192 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." March 8 The company purchased $2,730 of computer supplies from Harris office Products on credit with terms of n/30, FOB destination, involce 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 $960 cash for minor repairs to the company's computer. March 16 The company received $5,260 cash from Dream, Incorporated, for computing services provided. March 19 The company paid the full amount due of $3,830 to Harris office products, consisting of amounts created on December 15 (of $1,100 ) and March 8 . March 24 The company billed Easy Leasing for $9,047 of computing services provided. March 25 The company sold merchandise with a $2,002 cost for $2,800 on credit to wildcat Services, invoice dated March 25. March 30 The company sold merchandise with a $1,048 cost for $2,220 on credit to IFM Company, invoice dated March 30 . March 31 The company reimbursed Santana Rey $128 cash for business automobile mileage. The conpany recorded the relmbursement as "Mlleade 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 $555 expired during this three-month period, c. Lyn Addie has not been paid for seven days of work at the rate of $125 per day. d. Prepaid rent of $2,475 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,250. f. Depreciation on the office equipment for January 1 through March 31 is $400. g. The March 31 amount of merchandise inventory still available totals $704. SP 4 Serial Problem Part 4 (Static) 4. 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. (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 occounts as selling expenses: Wages Expense, Mileage Expense, and Advertising Expense. Categorize the remaining expenses as general and administrative. Complete this question by entering your answers in the tabs below. 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31,2022 . 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31,2022 . (Report Accounts receivable as a single amount.) 3. Prepare a 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger

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