Name

Section
Date

Problem 4-1A
Thomas Magnum, P.I.

(a)

Trial Balance
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Account Titles
Cash
Account Receivable
Supplies
Prepaid Insurance
Equipment
Notes Payable
Accounts Payable
T. Magnum, Capital
T. Magnum, Drawing
Service Revenue
Salaries Expense
Travel Expense
Rent Expense
Miscellaneous Expense
Totals
Accrued service revenue
Supplies Expense
Depreciation Expense
Accumulated Depreciation
Interest Expense
Interest Payable
Insurance Expense
Totals
Net Income
Totals

Dr.
11,400
5,620
1,050
2,400
30,000

Cr.

10,000
12,350
20,000
600
13,620
2,200
1,300
1,200
200
55,970

Thomas Magnum, P.I.

Worksheet
For the Quarter Ended March 31, 2008
Adjusted
Adjustments
Trial Balance
Dr.
Cr.
Dr.
Cr.
11,400
5,620
670
380
600
1,800
30,000
10,000
12,350
20,000
600
530
14,150
2,200
1,300
1,200
200

Income Statement
Dr.
Cr.

Balance Sheet
Dr.
Cr.
11,400
5,620
380
1,800
29,000
10,000
12,350
26,080

14,150
2,200
1,300
1,200
200

55,970
530
670
1,000

530
670
1,000
1,000

530
670
1,000
1,000

300

300
300

300
300

600

600

190

600
7,470
6,680

14,150

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

26

Totals

55,970

55,970

3,100

3,100

57,800

190

57,800

14,150

14,150

48,730

48,430 26

Name
Section
Date

Problem 4-1A Contin

Thomas Magnum,

(b)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

1
2
3
4
5
6
7
8
9
10

Service Revenue
Add accrued revenue
Less Expenses:
Supplies expense
Insurance expense
Depreciation
Interest expense
Salaries expense
Travel expense
Rent expense
Miscellaneous expense
Net income

Thomas Magnum, P.I.

Income Statement
For the Quarter Ended March 31, 2008
13,620
530
670
600
1,000
300
2,200
1,300
1,200
200

Thomas Magnum, P.I.

Owner's Equity Statement
For the Quarter Ended March 31, 2008
T.Magnum - capital
20,000
Add Net income
6,680
Total
26,680
Less T.Magnum - Drawings
600
T.Magnum - capital as on March 31
26,080

191

14,150

7470
6,680

191

Problem 4-1A Continued

Thomas Magnum, P.I.

Thomas Magnum, P.I.

Income Statement
For the Quarter Ended March 31, 2008
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Thomas Magnum, P.I.

Owner's Equity Statement
For the Quarter Ended March 31, 2008
1
2
3
4
5
6
7
8
9
10

191

191

Name
Section
Date

Problem 4-1A Continued

Thomas Magnum, P.I.

(b) (Continued)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Thomas Magnum, P.I.

Balance Sheet
March 31, 2008
Assets
Current Assets:
cash
Accounts receivable
Supplies
Accrued Service revenue
Prepaid Insurance
Total current assets
Plant assets:
Equipment
Less accumulated depreciation
Total plant assets
Total assets

11,400
5,620
380
530
1,800
19,730
30,000
1,000
29,000
48,730

Liabilities and Owner's Equity

Current Liabilities:
Account payable
Interest payable
Total current liabilities
Long term liabilities:
Notes payable
Owner's equity:
T.Magnum - capital
Total liabilities

12,350
300
12,650
10,000
26,080
48,730

192

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

192

Name
Section
Date

Problem 4-1A Concluded

Thomas Magnum, P.I.

(c )
General Journal

Date

Account Titles
Adjusting Entries

Debit

1
2 Mar. 31 Supplies expense
3
Supplies
4
5
31 Depreciation
6
Accumulated depreciation
7
8
31 Interest expense
9
Interest payable
10
11
31 Insurance expense
12
Prepaid Insurance
13
14
31 Accrued service revenue
15
Service revenue
(d)

Credit
670
670

1,000
1,000
300
300
600
600
530
530

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

General Journal

Date

Account Titles
1
Closing Entries
2 Mar. 31 service revenue(13,620 + 530)
3
Income summary
4
5
31
6
Income summary
7
Supplies expense
8
Insurance expense
9
Depreciation
10
Interest expense
11
Salaries expense
12
Travel expense
13
Rent expense
14
Miscellaneous expense
15
31
16
Income summary
17
T.Magnum - capital
18
31
19

Debit

Credit

14,150
14,150

7470
670
600
1,000
300
2,200
1,300
1,200
200
6,680
6,680

193

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

193