P4-1A Prepare A Worksheet, Financial Statements, and Adjusting and Closing Entries
P4-1A Prepare A Worksheet, Financial Statements, and Adjusting and Closing Entries
P4-1A Prepare A Worksheet, Financial Statements, and Adjusting and Closing Entries
The trial balance columns of the worksheet for Warren Roofing at March 31, 2017 are as follows.
WARREN ROOFING
Worksheet
For the Month Ended March 31, 2017
Trial Balance
Account Titles Dr. Cr.
Cash 4,500
Accounts Receivable 3,200
Supplies 2,000
Equipment 11,000
Accumulated Depreciatio 1,250
Accounts Payable 2,500
Unearned Service Reven 550
Owner's Capital 12,900
Owner's Drawings 1,100
Service Revenue 6,300
Salaries and Wages Expe 1,300
Miscellaneous Expense 400
23,500 23,500
Other data:
1. A physical count reveals only $480 of roofing supplies on hand.
2. Depreciation for March is $250.
3. Unearned service revenue amounted to $260 at March 31.
4. Accrued salaries are $700.
Instructions:
(a) Enter the trial balance on a worksheet and complete the worksheet.
(b) Prepare an income statement and owner's equity statement for the month of March
and a classified balance sheet at March 31. T. Warren made an additional investment
in the business of $10,000 in March.
(c) Journalize the adjusting entries from the adjustments columns of the worksheet.
(d) Journalize the closing entries from the financial statement columns of the worksheet.
D. Closing Entry
WARREN ROOFING
Closing Journal Entries
A. Complete Worksheet
Adjustment
Dr. Cr.
Cash
Account Receivable
Supplies 1,520
Equipment
Accumulation Depreciation- Equipment 250
Accounts Payable
Unerned Service Revenue 260
Owner's Capital
Owner's Drawing
Service Revenue 260
Salaries and Wage Expense 700
Miscellaneous Expense
Supplies Expense 1,520
Depreciation Expense 250
Salaries and Wage Payable 700
Totals 2730 2730
Net Income
Totals
WARREN ROOFING
Owner's Equity Statement
For the Month Ended March 31, 2017
Liabilities
Account Payable
Unerned Service Revenue
Salaries and Wages Payable
Total Liabilities
Owner's Equity
Ref Debit Credit Owner's Capital
1,520 Total Liabilities and Equ
1,520
250
250
260
260
700
700
Balance Sheet
Dr. Cr.
4,500
3,200
480
11,000
1,500
2,500
290
12,900
1,100
700
20,280 17,890
2,390
20,280 20,280
WARREN ROOFING
Balance Sheet
March 31, 2012
Assets
4,500
count Receivable 3,200
480
Total Current Asset 8,180
Property, Plant and Equipment
11,000
s: Acc Depreciation Equipment 1,500 9,500
Total Assets 17,680
ner's Equity
Owner's Capital 14,190
Total Liabilities and Equity 17,680