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Much of the exercises and problems can have data entered by the "look to" or "=A34" type formula where cell A34
contains the data to be entered. This precludes typing and data entry errors.
Name:
Problem: P16 Completing the Accounting Cycle
Course:
Date:
Thomas Magnum began operations as a private investigator on January 1, 2015. The trial balance columns of the work sheet for Thomas Magnum, P.I. at March 31 are
THOMAS MAGNUM, P.I.
Worksheet
For the Quarter Ended March 31, 2015
Trial Balance
Adjustments
Adjusted Trial Balance Income Statement
Account titles
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cash
11,400
11,400
Accounts Receivable
5,620
530
6,150
Supplies
1,050
670
380
Prepaid Insurance
2,400
600
1,800
Equipment
30,000
30,000
Notes Payable
10,000
10,000
Accounts Payable
12,350
12,350
T. Magnum, Capital
20,000
20,000
T. Magnum, Drawing
600
600
Service Revenue
13,620
530
14,150
Salaries Expense
2,200
2,200
2,200
Travel Expense
1,300
1,300
1,300
Rent Expense
1,200
1,200
1,200
Miscellaneous Expense
200
200
200
55,970
55,970
Supplies Expense
670
670
670
Depreciation Expense
1,000
1,000
1,000
Accumulated Depreciation
1,000
1,000
Interest Expense
150
150
150
Interest Payable
150
150
Insurance Expense
600
600
600
Totals
2,950
2,950
57,650
57,650
7,320
Net Income
6,830
Totals
14,150
Key: (a) Supplies Used; (b) Depreciation Expense; (c) Accrued Interest on note; (d) Insurance Expired; (e) Service Revenue Earned but unbilled.
Name:
Problem: P16 Completing the Accounting Cycle
Name:
Problem: P16 Completing the Accounting Cycle
Other data:
380
1. Supplies on hand total
1,000
2. Depreciation per quarter is
3. Interest accrued on 6-month note payable, issued January 1,
200 per month.
4. Insurance expires at the rate of
530
5. Services provided but unbilled at March 31 total
300
Instructions:
(a) Utilize the worksheet, above, and complete the worksheet.
(b) Prepare an income statement and owner's equity statement for the quarter and a classified balance sheet at March 31. T. Magnum did not make any additional inve
during the quarter ended March 31, 2015.
THOMAS MAGNUM, P.I.
THOMAS MAGNUM, P.I.
Income Statement
Balance Sheet
For the Quarter Ended March 31, 2015
March 31, 2015
Revenues
Assets
Service Revenue
14,150
Current assets
Expenses
Cash
Salaries Expense
2,200
Accounts Receivable
Travel Expense
1,300
Supplies
Rent Expense
1,200
Prepaid Insurance
Miscellaneous Expense
200
Total current assets
Supplies Expense
670
Property, plant, and equipment
Depreciation Expense
1,000
Equipment
Interest Expense
150
Less: Acc. Depreciation - Equipment
Insurance Expense
600
Total assets
Total expenses
7,320
Net income
6,830
Liabilities and Owners Equity
Current liabilities
Notes Payable
THOMAS MAGNUM, P.I.
Accounts Payable
Owners Equity Statement
Interest Payable
For the Quarter Ended March 31, 2015
Total current liabilities
T. Magnum, Capital, Jan 1
20,000
Owners equity
Add: Investment T. Magnum
T. Magnum, Capital
Net Income for March 31
6,830
6,830
Total liabilities and owners equity
Name:
Problem: P16 Completing the Accounting Cycle
Less: T. Magnum, Drawing
T. Magnum, Capital, March 31
26,830
600
26,230
Name:
Problem: P16 Completing the Accounting Cycle
(c) Journalize the adjusting entries from the adjustments columns of the work sheet.
Mar-31
Mar-31
Mar-31
Mar-31
Mar-31
Accounts Receivable
Service Revenue
530
Supplies Expense
Supplies
670
Depreciation Expense
Accumulated Depreciation
530
Expense Summary
Salaries Expense
Travel Expense
Rent Expense
Miscellaneous Expense
Supplies Expense
Depreciation Expense
Interest Expense
Insurance Expense
Mar-31
Mar-31
T. Magnum, Capital
T. Magnum, Drawing
670
1,000
1,000
Interest Expense
Interest Payable
150
Insurance Expense
Prepaid Insurance
600
150
600
Income Statement
Cr.
Balance Sheet
Dr.
Cr.
11,400
6,150
380
1,800
30,000
10,000
12,350
20,000
600
14,150
1,000
150
14,150
50,330
14,150
50,330
43,500
6,830
50,330
unbilled.
MAGNUM, P.I.
nce Sheet
h 31, 2015
Assets
11,400
6,150
380
1,800
19,730
30,000
(1,000)
29,000
48,730
nd Owners Equity
10,000
12,350
150
22,500
20,000
42,500
Revenue
ome Summary
14,150
14,150
Summary
laries Expense
avel Expense
nt Expense
scellaneous Expense
pplies Expense
preciation Expense
erest Expense
urance Expense
7,320
6,830
m, Capital
Magnum, Drawing
2,200
1,300
1,200
200
670
1,000
150
600
6,830
600
600