Acc280 Financial Accounting: P4-1A Thomas Magnum began operations as a private investigator

Acc280 Financial Accounting

P4-1A (Using Common Stock and Dividends)
Thomas Magnum began operations as a private investigator on January 1, 2008. The trial balance columns of the worksheet for Thomas Magnum, P.I. at March 31 are as follows.
THOMAS MAGNUM, P.I
Worksheet
For the Quarter Ended March 31, 2008
Trial Balance
AccountTitles Dr.Cr.
Cash 11,400
Accounts Receivable 5,620
Supplies 1,050
Prepaid Insurance 2,400
Equipment 30,000
Notes Payable 10,000
Accounts Payable 12,350
Common Stock 20,000
Dividends 600
Service Revenue 13,620
Salaries Expense 2,200
Travel Expense 1,300
Rent Expense 1,200
Miscellaneous Expense 200
55,970 55,970

Other data:
1. Supplies on hand total $380.
2. Depreciation is $1,000 per quarter.
3. Interest accrued on 6-month note payable, issued January 1, $300.
4. Insurance expires at the rate of $200 per month.
5. Services provided but unbilled at March 31 total $530.

Instructions:
a. Complete the worksheet. (If answer is zero, please enter 0. Do not leave any fields blank.)
b. Prepare an income statement and retained earnings statement for the quarter and a classified balance sheet at March 31.
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.
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