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[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. 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 avallable 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. S Tho company paid cash to Lya Addle for flve days work at the rate of $195 per dsy. Foar of the flve Cays relate to wages payable that were acerved in the prior year. 5 Fantans Rey inveated an additiona1 $24,300 eash in the company in exchange for mare connon stoek. 7 The company parchased $7,600 of morchandire from Xansas corp. with teran of 1/10, a/30, pob abipping point, Invoice dated Januery 7. 9 The company recelved $2,788 cash from Gosex Co. as full payment on its accoant. 11 The conpany conpleted a five-day project for Alex's Engineering Co. and billed it 55,330 , which is the total price of 56,650 leas the advance paynent of $1,320. The coepany debited Vaearned conputer Services Bevenue for 51,320 . 13 the company sold morchandise with a retail value of $4,800 and a cont of $3,420 to fil corp.. 1 avoice dated January 13 . 15 The coopany pald $740 eash for freight charges on the merchandise parchased on Janeary 7. 16 The company received $4,150 cash froa Delta Co. for cooputer services provided. 17 The company paid Kansan Corp. Tor the invofce dated January 7, net of che discoant. 20. The company gave a price reduetion (allowasee) of $700 to t.lu corp., and eredited tilu's accounts receivable for that amount. 22 The conpany received the balance due fron Liu Corp.. net of the discount and the allovance. Saved 22 The company received the balance due from thiu Corp.. net of the discount and the allowance. 2.4 The company returned defective merchandise to Kansas Corp. and accepted a credit against future Was $476. (debited accounts payable). The defective merchandise involce cost, net of the discount, 26 The company, purchased $9,000 of merchandise from Kansas Corp, with termin of 1/10, n/30, Fob 26. The company sold merchandise with a 54,550 cost for 55,940 on oredit to kc, Inc., involce dated The company paid cash to Lyn Addie for 10 days work at $195 per day. Feb. 1 The company paid $2,475 cash to Hillside Ma11 for another three months. rent in advance. 3 The company paid Kansas corp. for the balance due, net of the cash discount, less the \$476 oredit 5 The company paid $470 cash to Facebook for an advertifement to appear on February 5 only, 11 The company received the balance due froa Alex's Engineering Co. for fees billed on January 11 . 23 The company sold merchandise with a $2,530 cost for $3,350 on eredit to Delta Co., invoice dated February 23. 26 The company paid eash to Lyn Addie for elght days * work at \$195 per day, 27 The company rejmbursed Santana Rey $128 cash for buisfness automobile mileage. The company recerded the reimburitement as "Mileage Expense." Mar. B The company purehased $2,820 of computer supplies from Harria office products an eredit with terna of n/30, FOB destination, involee dated March 8 . 9 The coapany recelved the balance due from Delta Co. for zerchandise sold on February 23, 11 The company paid $950 cash for minor repairs to the company's computer. 16 The company received $5,430 cash froa Dream, Inc., for conputing servicet provided. 19 The company paid the full amount due of $4,050 to Harris office Products, consiating of amount created on December 15 (of $1,230 ) and March 8 . 24 The company billed Rasy Leasing for $9,147 of conputing servicen provided. 25 The company sold merchandise with a $2,052 cost for $2,950 on eredit to wildeat Servicea, involee dated Mareh 25 . 30 The company sold merchandise with a $1,178 cost for $2,380 on eredit to IFM conpany, invoice dated March 30 . 31 The company reimbureed Gantana Rey $160 cash for basiness automobile mileoge. The cerpany recorded the reimbursement as "Mileage 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 $2,035. b. Prepaid Insurance coverage of $627 expired during this 3-month period. 5. Un Addie has not been paid for seven davs of work at the rate of $195 Der dav. a. The March 31 amount of computer supplies still available totals $2,035. b. Prepaid Insurance coverage of $627 expired during this 3 -month period. c. Lyn Addie has not been paid for seven days of work at the rate of $195 per day. d. Prepaid rent of $2,475 expired during this 3-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,050. f. Depreciation on the office equipment for January 1 through March 31 is $330. g. The March 31 amount of merchandise inventory still available totals $504. Part 6 6. Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2020. 1 Syved Required information 5. Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the throe months ended March 31,2020

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