P4.

1A page 223
Warren Roofing
Worksheet
For the month ended March 31,2020
Adjusted Trial Income
Trial Balance Adjustments Balance Sheet
Account Titles Balance Statement
D K D K D K D K D K
Cash 4,500 - 10,000 - 14,500 - - - 14,500 -
Account Receivable 3,200 - - - 3,200 - - - 3,200 -
Supplies 2,000 - - 1,520 480 - - - 480 -
Equipment 11,000 - - - 11,000 - - - 11,000 -
Accumulated Depreciation-
- 1,250 - 250 - 1,500 - - - 1,500
Equipment
Account Payable - 2,500 - - - 2,500 - - - 2,500
Unearned Service Revenue - 550 260 - - 290 - - - 290
Owner’s Capital - 12,900 - 10,000 - 22,900 - - - 22,900
Owner’s Drawings 1,100 - - - 1,100 - - - 1,100 -
Service Revenue - 6,300 - 260 - 6,560 - 6,560 - -
Salaries and Wages Expense 1,300 - 700 - 2,000 - 2,000 - - -
Miscellaneous Expense 400 - - - 400 - 400 - - -
Total 23,500 23,500 - - - - - - - -
Supplies Expense - - 1,520 - 1,520 - 1,520 - - -
Depreciation Expense - - 250 - 250 - 250 - - -
Salaries and Wages Payable - - - 700 - 700 - - - 700
12,73 12,73 34,45 30,28
Total - - 34,450 4,170 6,560 27,890
0 0 0 0
Net Income - - - - - - 2,390 - - 2,390
30,28
Total - - - - - - 6,560 6,560 30,280
0

Warren Roofing
Income Statement
For the Month Ended March 31,2020
Revenues
Service Revenues $6,560
Expenses
Salaries and Wages Expenses 2000
Supplies Expense 1520
Miscellaneous Expense 400
Depreciation Expense 250
Total Expenses 4,170
Net Income 2,390
Warren Roofing
Balance Sheet
March 31,2020
Owner’s Capital,March 1 $12,900
Add: Investments 10,000
Net Income 2,390
Less: Drawings 1,100
Owner’s Capital, March 31 24,190

Warren Roofing
Balance Sheet
March 31, 2020
Assets
Cash 14,500
Account Receivable 3,200
Supplies 480
Equipment 11,000
Less: Accumulated Depreciation-equipment (1,500)
Total Assets 27,680
Liabilities and Owner’s Equity
Liabilities
Account Payable 2,500
Unearned Service Revenue 290
Salaries and Wages Payable 700
Total Liabilities 3,490
Owner’s Equity
Owner’s Capital 24,190
Total liabilities and owner’s equity 27,680

Adjusting Entries

March 31 Supplies Expense 1,520

Supplies 1,520
31 Depreciation Expense 250
Accumulated Depreciation-Equipment 250
31 Unearned Service Revenue 260
Service Revenue 260
31 Salaries and Wages Expense 700
Salaries and Wages Payable 700
31 Cash 10,000
Owner’s Capital 10,000
 Closing Entries

Marc 31 6,560
Service Revenue
h
Income Summary 6,560
31 Income Summary 4,170
Salaries and Wages Expense 2000
Miscellaneous Expense 1520
Supplies Expense 400
Depreciation Expense 250
31 Income Summary 2,390
Owner’s Capital 2,390
31 Owner’s Capital 1,100
Owner’s Drawing 1,100

E4.13 page 221

Correcting Entries

1 Account Payable ($750-$570) 180

Cash 180
2 Supplies 560
Equipment 56
Account Payable ($560-$56) 504
3 Owner’s Drawing 500
Salaries and Wages Expense 500