Project: Prepare a worksheet, financial statements, and adjusting and closing entries (15 marks)

The trial balance columns of the worksheet for Warren Roofing at March 31, 2022 are as follows.

WARREN ROOFING
Worksheet
For the Month Ended March 31, 2022
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
Share Capital—Ordinary 11,800
Service Revenue 6,300
Salaries and Wages Expense 1,300
Miscellaneous Expense 400
22,400 22,400

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 retained earnings statement for the month of March and a classified balance sheet at March 31. Warren
paid a total dividend of $1,000 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 the value into the yellow shaded input cells.

a. WARREN ROOFING
 Worksheet
For the Month Ended March 31, 2022

Adjusted Trial Income

Account Titles Trial Balance Adjustments Balance Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr.
Cash 4,500
Accounts Receivable 3,200
Supplies 2,000 (1)
Equipment
Accumulated Depr-Equip 1,250 (2)
Accounts Payable 2,500
Unearned Service Revenue 550 (3)
Share Capital—Ordinary
Service Revenue 6,300 (3)
Salaries and Wages Expense 1,300 (4)
Miscellaneous Expense 400
22,400 22,400
Supplies Expense (1)
Depreciation Expense (2)
Salaries and Wages Payable (4)
Totals
Net income
Totals
b. WARREN ROOFING
Income Statement
For the Month Ended March 31, 2022
Revenues
Service Revenues
Expenses
Salaries and wages expense
Supplies expense
Miscellaneous expense
Depreciation expense
Total expenses
Net income

WARREN ROOFING
Retained Earnings Statement
For the Month Ended March 31, 2022
Retained Earnings, March 1
Add: Net income

Less: Dividends
Retained Earnings, March 31
 WARREN ROOFING
Balance Sheet
March 31, 2022
Assets
Current Assets
Cash
Accounts receivable
Supplies
Total current assets
Property, plant and equipment
Equipment
Less: Accumulated depr -equip
Total assets

Liabilities and Equity

Current liabilities
Accounts payable
Dividends payable
Salaries and wages payable
Unearned service revenue
Total current liabilities
Equity
Share capital—ordinary
Retained earnings
Total liabilities and equity

c. Adjusting entries:

Mar 31 Supplies Expense

Supplies

Mar 31 Depreciation Expense

Accumulated Depr.-Equip.

Mar 31 Unearned Service Revenue

Service revenue
 Mar 31 Salaries and Wages Expense
Salaries and Wages Payable

d. Closing entries:

Mar 31 Service Revenue

Income Summary

Mar 31 Income Summary

Salaries and Wages Expense
Supplies Expense
Depreciation Expense
Miscelianeous Expense

Mar 31 Income Summary

Retained Earnings

Mar 31 Retained Earnings

Dividends
lance Sheet
Cr.