Warren Roofing

[logistic_guy]

The trial balance columns of the worksheet for \(\displaystyle \text{Warren Roofing}\) at March \(\displaystyle 31, 2017\), are as follows.



Other data:

\(\displaystyle \bold{1.}\) A physical count reveals only \(\displaystyle \$ 480\) of roofing supplies on hand.
\(\displaystyle \bold{2.}\) Depreciation for March is \(\displaystyle \$ 250\).
\(\displaystyle \bold{3.}\) Unearned revenue amounted to \(\displaystyle \$ 260\) at March \(\displaystyle 31\).
\(\displaystyle \bold{4.}\) Accrued salaries are \(\displaystyle \$ 700\).

Instructions

\(\displaystyle \bold{(a)}\) Enter the trial balance on a worksheet and complete the worksheet.
\(\displaystyle \bold{(b)}\) Prepare an income statement and owner’s equity statement for the month of March and a classified balance sheet at March \(\displaystyle 31\). \(\displaystyle \text{T. Warren}\) made an additional investment in the business of \(\displaystyle \$ 10,000\) in March.
\(\displaystyle \bold{(c)}\) Journalize the adjusting entries from the adjustments columns of the worksheet.
\(\displaystyle \bold{(d)}\) Journalize the closing entries from the financial statement columns of the worksheet.

 

[logistic_guy]

\(\displaystyle \bold{(a)}\)

\(\displaystyle \bold{1.}\) A physical count reveals only \(\displaystyle \$ 480\) of roofing supplies on hand.

Date​	Account​	Debit​	Credit​
March 31​	Supplies Expense​	1,520​	​
​	Supplies​	​	1,520​

 

[logistic_guy]

\(\displaystyle \bold{2.}\) Depreciation for March is \(\displaystyle \$ 250\).

Date​	Account​	Debit​	Credit​
March 31​	Depreciation Expense​	250​	​
​	Accumulated Depreciation​	​	250​

 

[logistic_guy]

\(\displaystyle \bold{3.}\) Unearned revenue amounted to \(\displaystyle \$ 260\) at March \(\displaystyle 31\).

Date​	Account​	Debit​	Credit​
March 31​	Unearned Service Revenue​	290​	​
​	Service Revenue​	​	290​

 

[logistic_guy]

\(\displaystyle \bold{4.}\) Accrued salaries are \(\displaystyle \$ 700\).

Date​	Account​	Debit​	Credit​
March 31​	Salaries and Wages Expense​	700​	​
​	Salaries and Wages Payable​	​	700​

 

[logistic_guy]

Adjustments​

Account​	Debit​	Credit​
Supplies​	​	1,520​
Accumulated Depreciation​	​	250​
Unearned Service Revenue​	290​	​
Service Revenue​	​	290​
Salaries and Wages Expense​	700​	​
Supplies Expense​	1,520​	​
Depreciation Expense​	250​	​
Salaries and Wages Payable​	​	700​
Totals​	\(\displaystyle \textcolor{white}{***}\) 2,760 \(\displaystyle \textcolor{white}{***}\)​	\(\displaystyle \textcolor{white}{***}\) 2,760 \(\displaystyle \textcolor{white}{***}\)​

 

[logistic_guy]

Adjusted Trial Balance​

Account​	Debit​	Credit​
Cash​	4,500​	​
Accounts Receivable​	3,200​	​
Supplies​	480​	​
Equipment​	11,000​	​
Accumulated Depreciation​	​	1,500​
Accounts Payable​		2,500​
Unearned Service Revenue​	​	260​
Owner's Capital​		12,900​
Owner's Drawings​	1,100​
Service Revenue​	​	6,590​
Salaries and Wages Expense​	2,000​	​
Miscellaneous Expense​	400​
Supplies Expense​	1,520​	​
Depreciation Expense​	250​	​
Salaries and Wages Payable​	​	700​
Totals​	\(\displaystyle \textcolor{white}{***}\) \(\displaystyle \textcolor{indigo}{\bold{24,450}}\) \(\displaystyle \textcolor{white}{***}\)​	\(\displaystyle \textcolor{white}{***}\) \(\displaystyle \textcolor{blue}{\bold{24,450}}\) \(\displaystyle \textcolor{white}{***}\)​