Ex4-2 Complete the worksheet

The adjusted trial balance columns of the worksheet for Savaglia Company are as follows.

SAVAGLIA COMPANY
Worksheet (Partial)
For the Month Ended April 30, 2017

Adjusted Trial Balance Income Statement

Account Titles Dr. Cr. Dr.
Cash 10,000
Accounts Receivable 7,840
Prepaid Rent 2,280
Equipment 23,050
Accumulated Depreciation - Equipment 4,900
Notes Payable 5,700
Accounts Payable 4,920
Owner's Capital 27,960
Owner's Drawings 3,650
Service Revenue 15,590
Salaries and Wages Expense 10,840
Rent Expense 760
Depreciation Expense 671
Interest Expense 57
Interest Payable 57
Totals 59,127 59,127

Instructions:
Complete the worksheet.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in c

SAVAGLIA COMPANY
Worksheet (Partial)
For the Month Ended April 30, 2017

Adjusted Trial Balance Income Statement

Account Titles Dr. Cr. Dr.
Cash 10,000
Accounts Receivable 7,840
Prepaid Rent 2,280
Equipment 23,050
 Accumulated Depreciation - Equipment 4,900
Notes Payable 5,700
Accounts Payable 4,920
Owner's Capital 27,960
Owner's Drawings 3,650
Service Revenue 15,590
Salaries and Wages Expense 10,840 10,840
Rent Expense 760 760
Depreciation Expense 650 650
Interest Expense 57 57
Interest Payable 57
Totals 59,127 59,127 12,307
Net income 3,283
Totals 15,590

After you have completed the requirements of E4-2, consider these additional questions.
Answers are on the other tab in this file.
1. Suppose Accounts Receivable balance changed to $10,840 and Service Revenue changed to $1
the Balance Sheet?
2. Suppose Savaglia received a utility bill for $375 which they failed to record. What is the impact o

1. Suppose Accounts Receivable balance changed to $10,840 and Service Revenue chang

SAVAGLIA COMPANY
Worksheet (Partial)
For the Month Ended April 30, 2017

Adjusted Trial Balance Income Statement

Account Titles Dr. Cr. Dr.
Cash 10,000
Accounts Receivable 10,840
Prepaid Rent 2,280
Equipment 23,050
Accumulated Depreciation - Equipment 4,900
Notes Payable 5,700
Accounts Payable 4,920
Owner's Capital 27,960
Owner's Drawings 3,650
Service Revenue 18,590
 Salaries and Wages Expense 10,840 10,840
Rent Expense 760 760
Depreciation Expense 650 650
Interest Expense 57 57
Interest Payable 57
Totals 62,127 62,127 12,307
Net income 6,283
Totals 18,590

If the accounts receivable changed to $10,840 and service revenue to $18590, then the ass
statement is increased by $3000 and the net income is increased by $3000

2. Suppose Savaglia received a utility bill for $375 which they failed to record. What is the impac

SAVAGLIA COMPANY
Worksheet (Partial)
For the Month Ended April 30, 2017

Adjusted Trial Balance Income Statement

Account Titles Dr. Cr. Dr.
Cash 10,000
Accounts Receivable 7,840
Prepaid Rent 2,280
Equipment 23,050
Accumulated Depreciation - Equipment 4,900
Notes Payable 5,700
Accounts Payable 4,920
Owner's Capital 27,960
Owner's Drawings 3,650
Service Revenue 15,590
Salaries and Wages Expense 10,840 10,840
Rent Expense 760 760
Depreciation Expense 650 650
Utilities Expense 375
Interest Expense 57 57
utilities payable 375
Interest Payable 57
Totals 59,502 59,502 12,307
Net income 3,283
Totals 15,590
if the utilities bill was added the net income is decreased by $375
)
April 30, 2017

Income Statement Balance Sheet

Cr. Dr. Cr.

umber or a formula in cells with a "?" .

MPANY
artial)
April 30, 2017

Income Statement Balance Sheet

Cr. Dr. Cr.
10,000
7,840
2,280
23,050
 4,900
5,700
4,920
27,960
3,650
15,590

57
15,590 46,820 43,537
3,283
15,590 46,820 46,820

e Revenue changed to $18,590, what is the impact on the Income Statement and

rd. What is the impact on the Income Statement and the Balance Sheet?

Service Revenue changed to $18,590, what is the impact on the Income Statement and the Balance Sheet?

MPANY
artial)
April 30, 2017

Income Statement Balance Sheet

Cr. Dr. Cr.
10,000
10,840
2,280
23,050
4,900
5,700
4,920
27,960
3,650
18,590
 57
18,590 49,820 43,537
6,283
18,590 49,820 49,820

to $18590, then the assets in income

y $3000

cord. What is the impact on the Income Statement and the Balance Sheet?

MPANY
artial)
April 30, 2017

Income Statement Balance Sheet

Cr. Dr. Cr.
10,000
7,840
2,280
23,050
4,900
5,700
4,920
27,960
3,650
15,590

375
57
15,590 46,820 43,912
2,908
15,590 46,820 46,820
the Balance Sheet?
Ex 4-3 Prepare financial statements from worksheet
Worksheet data for Savaglia Company are presented below. The owner did not make any additional inves

SAVAGLIA COMPANY
Worksheet (Partial)
For the Month Ended April 30, 2017

Adjusted Trial Balance Income Statement

Account Titles Dr. Cr. Dr.
Cash 10,000
Accounts Receivable 7,840
Prepaid Rent 2,280
Equipment 23,050
Accumulated Depreciation - Equip 4,900
Notes Payable 5,700
Accounts Payable 4,920
Owner's Capital 27,960
Owner's Drawings 3,650
Service Revenue 15,590
Salaries and Wages Expense 10,840
Rent Expense 760
Depreciation Expense 650
Interest Expense 57
Interest Payable 57
Totals 59,127 59,127

Instructions:
Prepare an income statement, an owner's equity statement, and a classified balance sheet.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in c

SAVAGLIA COMPANY
Income Statement
For the Month Ended April 30, 2017
Revenues
Service revenue $ 15,590

Expenses
Salaries and wages expense $ 10,840 ###
Rent Expense 760
Depreciation expense 650
Interest expense 57
 Total expenses 12,307
Net income $ 3,283

SAVAGLIA COMPANY
Owner's Equity Statement
For the Month Ended April 30, 2017
Owner's Capital, April 1 $ 27,960
Add: Net income 3283
$ 31,243
Less: Drawings 3650
Owner's Capital, April 30 $ 27,593

SAVAGLIA COMPANY
Balance Sheet
April 30, 2017
Assets
Current assets
Cash $ 10,000
Accounts receivable 7,840
Prepaid rent 2,280
Total current assets $ 20,120
Property, plant, and equipment
Equipment 23,050
Less: Accumulated depreciation - equipment 4,900 18,150
Total assets $ 38,270

Liabilities and Owner's Equity

Current liabilities
Notes payable $ 5,700
Accounts payable 4,920
Interest payable 57
Total current liabilities $ 10,677
Owner's Equity
Owner's Capital 27,593
Total liabilities and owner's equity $ 38,270

After you have completed the requirements of E4-3, consider these additional questions.
Answers are on the other tab in this file.
1. Suppose Accounts Receivable balance changed to $10,840 and Service Revenue changed to $1
the Balance Sheet?
2. Suppose Savaglia received a utility bill for $375 which they failed to record. What is the impact o

1. Suppose Accounts Receivable balance changed to $10,840 and Service Revenue chang

SAVAGLIA COMPANY
Income Statement
For the Month Ended April 30, 2017
Revenues
Service revenue $ 18,590

Expenses
Salaries and wages expense $ 10,840 ###
Rent Expense 760
Depreciation expense 650
Interest expense 57
Total expenses 12,307
Net income $ 6,283

SAVAGLIA COMPANY
Owner's Equity Statement
For the Month Ended April 30, 2017
Owner's Capital, April 1 $ 27,960
Add: Net income 6283
$ 34,243
Less: Drawings 3650
Owner's Capital, April 30 $ 30,593

SAVAGLIA COMPANY
Balance Sheet
April 30, 2017
Assets
Current assets
Cash $ 10,000
Accounts receivable 10,840
Prepaid rent 2,280
Total current assets $ 23,120
 Property, plant, and equipment
Equipment 23,050
Less: Accumulated depreciation - equipment 4,900 18,150
Total assets $ 41,270

Liabilities and Owner's Equity

Current liabilities
Notes payable $ 5,700
Accounts payable 4,920
Interest payable 57
Total current liabilities $ 10,677
Owner's Equity
Owner's Capital 30,593
Total liabilities and owner's equity $ 41,270

If the accounts receivable changed to $10,840 and service revenue to $18590, then the ass
statement is increased by $3000 and the net income is increased by $3000

2. Suppose Savaglia received a utility bill for $375 which they failed to record. What is the impact

SAVAGLIA COMPANY
Income Statement
For the Month Ended April 30, 2017
Revenues
Service revenue $ 15,590

Expenses
Salaries and wages expense $ 10,840 ###
Rent Expense 760
Depreciation expense 650
Interest expense 57
utilities expense 375
Total expenses 12,682
Net income $ 2,908

SAVAGLIA COMPANY
Owner's Equity Statement
For the Month Ended April 30, 2017
Owner's Capital, April 1 $ 27,960
Add: Net income 2908
$ 30,868
Less: Drawings 3650
Owner's Capital, April 30 $ 27,218

SAVAGLIA COMPANY
Balance Sheet
April 30, 2017
Assets
Current assets
Cash $ 10,000
Accounts receivable 7,840
Prepaid rent 2,280
Total current assets $ 20,120
Property, plant, and equipment
Equipment 23,050
Less: Accumulated depreciation - equipment 4,900 18,150
Total assets $ 38,270

Liabilities and Owner's Equity

Current liabilities
Notes payable $ 5,700
Accounts payable 4,920
Interest payable 57
Utilities payable 375
Total current liabilities $ 11,052
Owner's Equity
Owner's Capital 27,218
Total liabilities and owner's equity $ 38,270

if the utilities bill was added the net income is decreased by $375
ake any additional investments in the business in April.

ncome Statement Balance Sheet

Cr. Dr. Cr.

ed balance sheet.
mber or a formula in cells with a "?" .
Revenue changed to $18,590, what is the impact on the Income Statement and

d. What is the impact on the Income Statement and the Balance Sheet

ervice Revenue changed to $18,590, what is the impact on the Income Statement and the Balance Sheet?
o $18590, then the assets in income
$3000

d. What is the impact on the Income Statement and the Balance Sheet
the Balance Sheet?
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.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a

(a) WAR

For the Mont

 Account Titles Trial Balance
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
Totals 23,500 23,500
Supplies Expense
Depreciation Expense
Salaries and Wages Payable
Totals
Net income
Totals

(b) WARREN ROOFING

Income Statement
For the Month Ended March 31, 2017
Revenues
Service Revenues $ 6,590
Expenses
Salaries and wages expense $ 2,000
Supplies expense 1,520
Miscellaneous expense 400
Depreciation expense 250
Total expenses 4,170
Net income $ 2,420

WARREN ROOFING
Owner's Equity Statement
 For the Month Ended March 31, 2017
Owner's Capital, March 1 $2,900
Add: Investments $ 10,000
Net income 2,420 12,420
15,320
Less: Drawings 1,100
Owner's Capital, March 31 $ 14,220

WARREN ROOFING
Balance Sheet
March 31, 2017
Assets
Current Assets
Cash 4,500
Accounts receivable 3,200
Supplies 480
Total current assets $ 8,180
Property, plant and equipment
Equipment 11,000
Less: Accumulated depreciation -equipment 1,500 9,500
Total assets $ 17,680

Liabilities and Owner's Equity

Current liabilities
Accounts payable 2,500
Salaries and wages payable 700
Unearned service revenue 260
Total current liabilities 3,460
Owner's equity
Owner's capital 14,220
Total liabilities and owner's equity $ 17,680

(c ) Adjusting entries:

Mar 31 suppplies expense a/c 1,520

supplies a/c

Mar 31 depreciation expense a/c 250

 accumulated depreciation a/c

Mar 31 unearned service revenue a/c 290

service revenue a/c

Mar 31 salaries and wages expense a/c 700

salaries and wages payable a/c

(d) Closing entries:

Mar 31 service revenue a/c 6590

income statement a/c

Mar 31 income statement a/c 4,170

salaries and wages expense a/c
miscellaneous expense a/c
supplies expense a/c
depreciation expense a/c

Mar 31 income statement a/c 2,420

owner's capital

Mar 31 owner's capital a/c 1,100

owner's withdrawls a/c

After you have completed the requirements of P4-1A, consider these additional questions.
Answers are on the other tab in this file.
1. Suppose the March 31 balance of Supplies changed to $750, show how this changes the Worksh
adjusting and closing entries.
2. Suppose the March 31 balance of Unearned Service Revenue changed to $350, show how this c
adjusting and closing entries.
 1. Suppose the March 31 balance of Supplies changed to $750, show how this changes the

(a) WAR

For the Mont

Account Titles Trial Balance
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
Totals 23,500 23,500
Supplies Expense
Depreciation Expense
Salaries and Wages Payable
Totals
Net income
Totals

(b) WARREN ROOFING

Income Statement
For the Month Ended March 31, 2017
Revenues
Service Revenues $ 6,590
Expenses
Salaries and wages expense $ 2,000
Supplies expense 1,250
Miscellaneous expense 400
Depreciation expense 250
Total expenses 3,900
 Net income $ 2,690

WARREN ROOFING
Owner's Equity Statement
For the Month Ended March 31, 2017
Owner's Capital, March 1 $2,900
Add: Investments $ 10,000
Net income 2,690 12,690
15,590
Less: Drawings 1,100
Owner's Capital, March 31 $ 14,490

WARREN ROOFING
Balance Sheet
March 31, 2017
Assets
Current Assets
Cash 4,500
Accounts receivable 3,200
Supplies 750
Total current assets $ 8,450
Property, plant and equipment
Equipment 11,000
Less: Accumulated depreciation -equipment 1,500 9,500
Total assets $ 17,950

Liabilities and Owner's Equity

Current liabilities
Accounts payable 2,500
Salaries and wages payable 700
Unearned service revenue 260
Total current liabilities 3,460
Owner's equity
Owner's capital 14,490
Total liabilities and owner's equity $ 17,950

(c ) Adjusting entries:
 Mar 31 suppplies expense a/c 1,250
supplies a/c

Mar 31 depreciation expense a/c 250

accumulated depreciation a/c

Mar 31 unearned service revenue a/c 290

service revenue a/c

Mar 31 salaries and wages expense a/c 700

salaries and wages payable a/c

(d) Closing entries:

Mar 31 service revenue a/c 6590

income statement a/c

Mar 31 income statement a/c 3,900

salaries and wages expense a/c
miscellaneous expense a/c
supplies expense a/c
depreciation expense a/c

Mar 31 income statement a/c 2,690

owner's capital

Mar 31 owner's capital a/c 1,100

owner's withdrawls a/c

if the supplies remaining changed to $750 then the net income is incresed

2. Suppose the March 31 balance of Unearned Service Revenue changed to $350, show how this c
(a) WAR

For the Mont

Account Titles Trial Balance
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
Totals 23,500 23,500
Supplies Expense
Depreciation Expense
Salaries and Wages Payable
Totals
Net income
Totals

(b) WARREN ROOFING

Income Statement
For the Month Ended March 31, 2017
Revenues
Service Revenues $ 6,500
Expenses
Salaries and wages expense $ 2,000
Supplies expense 1,250
Miscellaneous expense 400
Depreciation expense 250
Total expenses 3,900
Net income $ 2,600
 WARREN ROOFING
Owner's Equity Statement
For the Month Ended March 31, 2017
Owner's Capital, March 1 $2,900
Add: Investments $ 10,000
Net income 2,600 12,600
15,500
Less: Drawings 1,100
Owner's Capital, March 31 $ 14,400

WARREN ROOFING
Balance Sheet
March 31, 2017
Assets
Current Assets
Cash 4,500
Accounts receivable 3,200
Supplies 750
Total current assets $ 8,450
Property, plant and equipment
Equipment 11,000
Less: Accumulated depreciation -equipment 1,500 9,500
Total assets $ 17,950

Liabilities and Owner's Equity

Current liabilities
Accounts payable 2,500
Salaries and wages payable 700
Unearned service revenue 350
Total current liabilities 3,550
Owner's equity
Owner's capital 14,400
Total liabilities and owner's equity $ 17,950

(c ) Adjusting entries:

Mar 31 suppplies expense a/c 1,250

supplies a/c
 Mar 31 depreciation expense a/c 250
accumulated depreciation a/c

Mar 31 unearned service revenue a/c 290

service revenue a/c

Mar 31 salaries and wages expense a/c 700

salaries and wages payable a/c

(d) Closing entries:

Mar 31 service revenue a/c 6500

income statement a/c

Mar 31 income statement a/c 3,900

salaries and wages expense a/c
miscellaneous expense a/c
supplies expense a/c
depreciation expense a/c

Mar 31 income statement a/c 2,600

owner's capital

Mar 31 owner's capital a/c 1,100

owner's withdrawls a/c

if the unearned revenue changed to $350 then the net income is incresed
e as follows.

ormula in cells with a "?" .

WARREN ROOFING
Worksheet
For the Month Ended March 31, 2017
 Adjustments Adjusted Trial Balance Income Statement
Dr. Cr. Dr. Cr. Dr. Cr.
4500
3200
1,520 480
11000
250 1,500
2500
290 260
12900
1100
290 6,590 6590
700 2000 2000
400 400

1520 1520 1520

250 250 250
700 700
2,760 2,760 24450 24,450 4170 6590
2420
6590 6590
1,520
 250

*6590
290

700

income statement service revenue

6,590 2000 6590 6590
400
1520
250
2,000 2420 2420 6590 6590
400
1,520
250

2,420

1,100

s changes the Worksheet, Income Statement, the Balance Sheet,

$350, show how this changes the Worksheet, Income Statement, the Balance Sheet,
ow this changes the Worksheet, Income Statement, the Balance Sheet, adjusting and closing entries.

WARREN ROOFING
Worksheet
For the Month Ended March 31, 2017
Adjustments Adjusted Trial Balance Income Statement
Dr. Cr. Dr. Cr. Dr. Cr.
4500
3200
1,250 750
11000
250 1,500
2500
290 260
12900
1100
290 6,590 6590
700 2000 2000
400 400

1250 1250 1250

250 250 250
700 700
2,490 2,490 24450 24,450 3900 6590
2690
6590 6590
 1,250

250

290

700

income statement service revenue

6,590 2000 6590 6590
400
1250
250
2,000 3900 2690 6590 6590
400
1,250
250

2,690

1,100

$350, show how this changes the Worksheet, Income Statement, the Balance Sheet,
 WARREN ROOFING
Worksheet
For the Month Ended March 31, 2017
Adjustments Adjusted Trial Balance Income Statement
Dr. Cr. Dr. Cr. Dr. Cr.
4500
3200
1,250 750
11000
250 1,500
2500
200 350
12900
1100
200 6,500 6500
700 2000 2000
400 400

1250 1250 1250

250 250 250
700 700
2,400 2,400 24450 24,450 3900 6500
2600
6500 6500
1,250
250

290

700

income statement service revenue

6,500 2000 6500 6590
400
1250
250
2,000 3900 2600 6590 6590
400
1,250
250

2,600

1,100
 Balance Sheet
Dr. Cr.
4500
3200
480
11000 `
1500
2500
260
12900
1100

700
20280 17860
2420
20280 20280
 4170

expenses owner's capital owner's withdrawl

2000 12900 1100 1100
400 2420 1100
1520
250
4170 4170 13120
closing entries.

Balance Sheet
Dr. Cr.
4500
3200
750
11000 `
1500
2500
260
12900
1100

700
20550 17860
2690
20550 20550
expenses
2000
400
1520
250
4170 4170
 Balance Sheet
Dr. Cr.
4500
3200
750
11000 `
1500
2500
350
12900
1100

700
20550 17950
2600
20550 20550
expenses
2000
400
1520
250
4170 4170