Help Serial Problem Business Solutions LO P1, P2, P3, P4 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. 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 Account Title No. Credit bebit $48,452 3.08 a 2,808 101 Cash 186.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 106.5 Liu Corp. 186.6 Gomez Co. 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. 119 Merchandise inventory 126 Computer supplies 128 Prepaid insurance 131 Prepaid rent 163 Office equipment 164 Accumulated depreciation-office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 640 1.989 925 8,140 5 220 20,300 1,140 1.110 82F Cle O 4 earch C 1,140 1,110 700 1,310 72,694 9,160 168 203 210 236 307 318 319 403 413 414 415 502 612 613 623 Accumulated depreciation Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue Sales 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 637 540 652 655 676 677 684 @ In response to requests from customers, S. Rey will begin selling computer software. The company wil 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. 4 The company paid cash to Lyn Addie for five days' work at the rate of $175 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $23.900 cash in the company in exchance for more common stock. Jan. 82'F Clear o itir arch Choco 4 the IN th www al It inte Toth, the + th he NIE Cat O 13 tion Problems Surved Help Save & C Mar. 5 The company paid $530 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 The company paid a $4,640 cash dividend. 23 The company sold merchandise with a $2,580 cost for $3,410 on credit to Delta Co., Invoice dated February 23 26 The company paid cash to Lyn Addie for eight days work at $175 per day. 27 The company reimbursed Santana Rey $160 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." 8 The company purchased $2,880 of computer supplies from Harris Office Products on credit with terms of n/30, FOG destination, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $930 cash for minor repairs to the company's computer. 16 The company received $5,299 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $3,990 to Harris Office Products, consisting of amounts created on December 15 (of $1,118) and March 8. 24 The company billed Easy Leasing for $9,197 of computing services provided. 25 The company sold merchandise with a $2,012 cost for $2,810 on credit to Wildcat Services, invoice dated March 30 The company sold merchandise with a $1,848 cost for $2,248 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $256 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation: 25. a. The March 31 amount of computer supplies still available totals $2,015, b. Prepaid Insurance coverage of $663 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $175 per day d. Prepaid rent of $2,775 expired during this 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1140 f. Depreciation on the office equipment for January 1 through March 31 is $220. g. The March 31 amount of merchandise inventory still available totals $664. ons 82F Cle . 4. 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 (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. expenses. Complete this question by entering your answers in the tabs below. Required 4 Required 48 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. BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Revenues 82F Clear o in 3 ! Required information For Three Months Ended March 31, 2020 Revenues Total revenues Expenses Total expenses 82F Cle O 4 earch C 1,140 1,110 700 1,310 72,694 9,160 168 203 210 236 307 318 319 403 413 414 415 502 612 613 623 Accumulated depreciation Computer equipment Accounts payable Wages payable Unearned computer services revenue Common stock Retained earnings Dividends Computer services revenue Sales 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 637 540 652 655 676 677 684 @ In response to requests from customers, S. Rey will begin selling computer software. The company wil 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. 4 The company paid cash to Lyn Addie for five days' work at the rate of $175 per day. Four of the five days relate to wages payable that were accrued in the prior year. 5 Santana Rey invested an additional $23.900 cash in the company in exchance for more common stock. Jan. 82'F Clear o itir arch Choco 4 the IN th www al It inte Toth, the + th he NIE Cat O 13 tion Problems Surved Help Save & C Mar. 5 The company paid $530 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11. 15 The company paid a $4,640 cash dividend. 23 The company sold merchandise with a $2,580 cost for $3,410 on credit to Delta Co., Invoice dated February 23 26 The company paid cash to Lyn Addie for eight days work at $175 per day. 27 The company reimbursed Santana Rey $160 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." 8 The company purchased $2,880 of computer supplies from Harris Office Products on credit with terms of n/30, FOG destination, invoice dated March 8. 9 The company received the balance due from Delta Co. for merchandise sold on February 23. 11 The company paid $930 cash for minor repairs to the company's computer. 16 The company received $5,299 cash from Dream, Inc., for computing services provided. 19 The company paid the full amount due of $3,990 to Harris Office Products, consisting of amounts created on December 15 (of $1,118) and March 8. 24 The company billed Easy Leasing for $9,197 of computing services provided. 25 The company sold merchandise with a $2,012 cost for $2,810 on credit to Wildcat Services, invoice dated March 30 The company sold merchandise with a $1,848 cost for $2,248 on credit to IFM Company, invoice dated March 30. 31 The company reimbursed Santana Rey $256 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense." The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation: 25. a. The March 31 amount of computer supplies still available totals $2,015, b. Prepaid Insurance coverage of $663 expired during this 3-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $175 per day d. Prepaid rent of $2,775 expired during this 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1140 f. Depreciation on the office equipment for January 1 through March 31 is $220. g. The March 31 amount of merchandise inventory still available totals $664. ons 82F Cle . 4. 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 (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. expenses. Complete this question by entering your answers in the tabs below. Required 4 Required 48 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. BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Revenues 82F Clear o in 3 ! Required information For Three Months Ended March 31, 2020 Revenues Total revenues Expenses Total expenses