Question

Sheridan Roofing Worksheet For the Month Ended March 31, 2020
		Trial Balance
Account Titles		Dr.		Cr.
Cash		4,800
Accounts Receivable		2,800
Supplies		1,930
Equipment		10,868
Accumulated Depreciation—Equipment				1,235
Accounts Payable				2,530
Unearned Service Revenue				490
Owner’s Capital				12,663
Owner’s Drawings		1,130
Service Revenue				6,400
Salaries and Wages Expense		1,390
Miscellaneous Expense		400
		23,318		23,318

Other data:

1.		A physical count reveals only $400 of roofing supplies on hand.
2.		Depreciation for March is $247.
3.		Unearned revenue amounted to $210 at March 31.
4.		Accrued salaries are $600.

MAKE A WORKSHEET

THEN

Prepare an income statement for the month of March. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

THEN

T. Sheridan made an additional investment in the business of $9,763 in March. Prepare an owner’s equity statement for the month of March. (List items that increase owner's equity first.)

THEN

Prepare a classified balance sheet at March 31. (List Current Assets in order of liquidity.)

THEN

Journalize the adjusting entries from the adjustments columns of the worksheet. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

THEN

Journalize the closing entries from the financial statement columns of the worksheet. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Work sheet:

Work sheet
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
Account Titles	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	4,800				4,800				4,800
Accounts Receivable	2,800				2,800				2,800
Supplies	1,930			1530	400				400
Equipment	10,868				10,868				10,868
Accumulated Depreciation—Equipment		1,235		247		1,482				1,482
Accounts Payable		2,530				2,530				2,530
Salaries and Wages payable				600		600				600
Unearned Service Revenue		490	210			280				280
Owner’s Capital		12,663				12,663				12,663
Owner’s Drawings	1,130				1,130				1,130
Service Revenue		6,400		210		6,610		6,610
Salaries and Wages Expense	1,390		600		1,990		1,990
Miscellaneous Expense	400				400		400
Supplies expense			1,530		1,530		1,530
Depreciation expense			247		247		247
Total	23,318	23,318	2,587	2,587	24,165	24,165	4,167	6,610	19,998	17,555
Net income							2,443			2,443
Total							6,610	6,610	19,998	19,998

Income Statement:

Income Statement
For the month ended March 31,2020
Revenues:
Service Revenue		6,610
Expenses:
Salaries and Wages Expense	1,990
Miscellaneous Expense	400
Supplies expense	1,530
Depreciation expense	247
Total expenses		4,167
Net income		2,443

Statement of owner's equity:

Statement of owner's equity
For the month ended March 31,2020
Owner's capital, Beginning balance	$12,663
Add: Net income	$2,443
Balance	$15,106
Less: Owner's Drawings	($1,130)
Owner's capital, Ending balance	$13,976

Balance Sheet:

Balance Sheet
As of March 31,2020
Assets		Liabilities and Owner's equity
Current Assets:		Current liabilities:
Cash	4,800	Accounts Payable	2,530
Accounts Receivable	2,800	Salaries and Wages payable	600
Supplies	400	Unearned Service Revenue	280
Total current assets	8,000	Total liabilities	3,410
Property,plant,and equipment:
Equipment	10,868	Owner's Equity:
Accumulated Depreciation—Equipment	-1,482	Owner’s Capital	13,976
Property,plant,and equipment-Net	9,386
Total Assets	17,386	Total liabilities and Owner's equity	17,386

Adjusting Entries:

Date	Accoun title and explanation	Debit	Credit
3/31/2020	Supplies expense [1,930-400]	1,530
	Supplies		1,530
	[To record supplies expense]
3/31/2020	Depreciation expense	247
	Accumulated depreciation-equipment		247
	[To record depreciation expense]
3/31/2020	Unearned service revenue	210
	Service revenue		210
	[To record revenue from unearned]
3/31/2020	Salaries expense	600
	Salaries payable		600
	[To record accrued salaries expense]

Closing Entries:

Date	Account title and Explanation	Debit	Credit
3/31/2020	Service Revenue	6,610
	Income Summary		6,610
	[To close revenue accounts]
3/31/2020	Income Summary	4,167
	Salaries and Wages Expense		1,990
	Miscellaneous Expense		400
	Supplies expense		1,530
	Depreciation expense		247
	[To close expenses accounts]
3/31/2020	Income summary	2,443
	Owner's capital		2,443
	[To close income summary account]
3/31/2020	Owner's capital	1,130
	Owner's drawings		1,130
	[To close owner's drawing account]