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 Depreciation-Equipment 1,250
Accounts Payable 2,500
Unearned Service Revenue 550
Owner's Capital 12,900
Owner's Drawings 1,100
Service Revenue 6,300
Salaries and Wages Expense 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.

Warren Roofing
Worksheet
For the Month Ended March 31, 2
a
Trial Balance Adjustment
Account Titles
Dr. Cr. Dr.
 Cash 4,500
Accounts Receivable 3,200
Supplies 2,000
Equipment 11,000
Accumulated Depreciation-Equipment 1,250
Accounts Payable 2,500
Unearned Service Revenue 550 (3)290
Owner's Capital 12,900
Owner's Drawing 1,100
Service Revenue 6,300
Salaries & Wages Expense 1,300 (4)700
Miscellaneous Expense 400
Totals 23,500 23,500
Supplies Expense (1)1,520
Deperciation Expense (2)250
Salaries & Wages Payable
Totals 2,760
Net Income
Totals

Warren Roofing
Income Statement
For the Month Ended March 31, 2017
b
Revenues
Service Revenue 6,590
Expenses
Depreciation Expense 250
Supplies Expense 1,520
Salaries & Wages Expense 2,000
Miscellaneous Expense 400
Total Expenses 4,170
Net Income 2,420
 Warren Roofing
Adjusting Journal Entries
c
Date Account Titles & Explanations
Supplies Expense
March 31 Supplies
(To record Supplies used)
Depreciation Expense
March 31 Accumulated Decpreciation-Equipment
(To record Depreciation Expense used)
Unearned Service Revenue
March 31 Service Revenue
(To record Unearned Service Revenue earned)
Salaries and Wages Expense
March 31 Salaries and Wages Payable
(To record Accrued Salaries Expense)

Warren Roofing
Closing Journal Entries
d
Date Account Titles & Explanations
Service Revenue
March 31 Income Summary
(To close Revenues)
Income Summary
Salaries & Wages Expense
Miscellaneous Expense
March 31
Supplies Expense
Depreciation Expense
(To close Expense)
Income Summary
March 31 Owner's Capital
(To transfer net income to the Capital)
Owner's Capital
March 31 Owner's Drawings
(To transfer drawings to the Capital)
2017 are as follows.

of March
al investment

worksheet.

Warren Roofing
Worksheet
or the Month Ended March 31, 2017
Adjustment Adjusted Trial Balance Income Statement Balance Sheet
Cr. Dr. Cr. Dr. Cr. Dr. Cr.
 4,500 4,500
3,200 3,200
(1)1,520 2,000 2,000
11,000 11,000
(2)250 1,250 1,250
2,500 2,500
550 550
12,900 12,900
1,100 1,100
(3)290 6,590 6,590
2,000 2,000
400 400

1,520 1,520
250 250
(4)700 700 700
2,760 24,450 24,450 4,170
2,420 2,420
6,590 6,590 20,280 20,280

Warren Roofing
Owner's Equity Statement
For the Month Ended March 31, 2017

Owner's Capital, March 01 (12,900 - 10,000) 2,900

Add: Investment 10,000
Net Income 2,420 12,420
15,320
Less: Owner's Drawing 1,100
Owner's Capital, March 31 14,220
ofing
al Entries
Explanations Ref Debit Credit
1,520
1,520

250
n-Equipment 250
n Expense used)
290
290
ervice Revenue earned)
700
700
aries Expense)

ofing
l Entries

Explanations Ref Debit Credit

6,590
6,590

4,170
2,000
400
1,520
250

2,420
2,420
to the Capital)
1,100
1,100
o the Capital)
 Warren Roofing
Balance Sheet
March 31, 2017

Assets
Current Assets
Cash 4,500
Accounts Receivable 3,200
Supplies 480
Property, plant and equipment 8,180
Equipment 11,000
Less: Accumulated Depreciation-Equipment 1,500 9,500
Total assets 17,680

Liabilities and Owner's Equity

Liabilities
Accounts Payable 2,500
Unearned Service Revenue 260
Salaries & Wages Payable 700
Total Liabilities 3,460
Owner's Equity
Owner's Capital (March 31) 14,220
Total liabilities and owner's equity 17,680