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

Date Account Tittles and Explanation Ref Debit

March,31 Service Revenue 6,560
 Income Summary
(To close revenues)
March,31 Income Summary 4,170
Salaries and Wages Expense
Miscellacious Expense
Supplies Expense
Depreciation Expense
(To close expense)
March,31 Income Summary 2,390
Retained Earning
(To transfer net income to capital)
March,31 Owner's Capital 1,100
Owner's Drawing
(To transfer Drawings to the capital)
7 are as follows.

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

B. Income Statemrnt, Owner's Equity Statement, Balance Sheet

WAREN ROOFING
Income Statement
For the Month Ended March 31, 2017
nvestment
Revenue
Service Revenue 6,560
Expenses
Salaries and Wages Expense 2,000
Supplies Expense 1,520
Miscellaneous Expense 400
Depreciation Expense 250
Total Expense 4,170
Net Income 2,390
Credit
6,560
C. Adjusting Entries

2,000 WARREN ROOFING

400 Adjusting Journals Entries
1,520
250 Date Account Tittles and Explanation
March, 31 Supplies Expense
Supplies
2,390 (To record supplie used)
March, 31 Depreciation Expense
Accumalated Depreciation-Equipment
1,100 (To record depreciation expense)
March,31 Unearned Service Revenue
Service Revenue
(To record unearned revenue earned)
March,31 Salaries and Wages Expense
Salaries and Wages Payable
(To record accrued salaries expense)
 WARREN ROOFING
Worksheet
For the end of March 31, 2017
Adjusted Trial Balance Income Statement
Dr. Cr. Dr. Cr.
4,500
3,200
480
11,000
1,500
2,500
290
12,900
1,100
6,560 6,560
2,000 2,000
400 400
1,520 1,520
250 250
700
24,450 24,450 4,170 6,560
2,390
6,560 6,560

WARREN ROOFING
Owner's Equity Statement
For the Month Ended March 31, 2017

Owner's Capital, March 1 2,900 Cash

(12,900-10,000) Account Receivable
Investment 10,000 Supplies
Net Income 2,390 12,390 Total Current Asset
15,290 Property, Plan
Less : Drawings 1,100 Equipment
Owner's Capital, March 31 14,190 Less: Acc Depreciation Equipme
Total Assets

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

Liabilities and Owner's Equity

Account Payable 2,500
Unerned Service Revenue 290
alaries and Wages Payable 700
Total Liabilities 3,490

ner's Equity
Owner's Capital 14,190
Total Liabilities and Equity 17,680