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XACC 280 appendix E, E4-1A Thomas Magnum on page 176-177 of Financial Accounting.

XACC 280  -appendix E-   E4-1AThomas Magnum on page 176-177 of Financial Accounting.
Use Appendix E located on the Materials Web Page to complete the 10-column worksheet.

P4-1A 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., INC.
Worksheet
For the Quarter Ended March 31, 2008
Trial Balance
Account Titles                                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) Enter the trial balance on a worksheet and complete the worksheet.
(b) Prepare an income statement and a retained earnings statement for the quarter and a classified balance sheet at March 31. No additional common stock was issued during the quarter ended March 31, 2008.
(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.

File name: ACC-280-P4-1A-Thomas-Magnum-began.xls File type: application/vnd.ms-excel Price: $10

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