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Problem P4-1A, Prepare worksheet, financial statements, and adjusting and closing entries.
Financial Accounting, 8th Edition by Weygandt, Kieso, and Kimmel
Primer on Using Microsoft Excel in Accounting by Rex A Schildhouse
Problem P4-1A, Sherlock Holmes began operations as a private investigator on January 1, 2014. The trial balance columns of the worksheet for Sherlock Holmes, P.I. at March 31 are as follows.
SHERLOCK HOLMES, P.I., INC.
Worksheet
For the Quarter Ended March 31, 2014
Unadjusted Trial Balance
Ref
Adjustments
Ref
Adjusted Trial Balance
Income Statement
Balance Sheet
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
11,410
Accounts Receivable
5,920
Supplies
1,250
Prepaid Insurance
2,400
Equipment
30,000
Notes Payable
10,000
Accounts Payable
12,350
Common Stock
20,000
Dividends
600
Service Revenue
14,200
Salaries and Wages Expense
2,240
Travel Expense
1,300
Rent Expense
1,200
Miscellaneous Expense
230
Totals
56,550
56,550
Supplies Expense
Depreciation Expense
Accumulated Depreciation
Interest Expense
Interest Payable
Insurance Expense
Totals
Net Income
Totals
Other data:
1. Supplies on hand total
$480
(a)
2. Depreciation is
$720
for the quarter
(b)
3. Interest accrued on 6-month note payable, issued January 1,
$300
(c)
4. Insurance expires at the rate of
$200
per month.
(d)
5. Services provided but unbilled at March 31 total
$1,080
(e)
Instructions:
(a) Complete the worksheet.
(b)(1) Prepare an income statement for the quarter ended March 31, 2014.
SHERLOCK HOLMES, P.I., INC.
Income Statement
For the Quarter Ended March 31, 2014
Title
Account title
Amount
Title
Account title
Amount
Account title
Amount
Account title
Amount
Account title
Amount
Account title
Amount
Account title
Amount
Account title
Amount
Account title
Amount
Title
Formula
Title
Formula
(b)(2) Prepare a retained earnings statement for the quarter ended March 31, 2014.
SHERLOCK HOLMES, P.I., INC.
Retained Earnings Statement
For the Quarter Ended March 31, 2014
Title
$0
Title
Amount
Formula
Title
Amount
Title
Formula
(b)(3) Prepare a classified balance sheet for March 31, 2014.
SHERLOCK HOLMES, P.I., INC.
Balance Sheet
March 31, 2014
Assets
Title
Account title
Amount
Account title
Amount
Account title
Amount
Account title
Amount
Total current assets
Formula
Title
Account title
Amount
Less: Account title
Amount
Formula
Title
Formula
Liabilities and Stockholders’ Equity
Title
Account title
Amount
Account title
amount
Account title
amount
Total Current Liabilities
Formula
Title
Account title
Amount
Account title
Amount
Title
Formula
Total Liabilities and Stockholders’ Equity
Formula
(c) Journalize the adjusting entries from the adjustments columns of the worksheet.
Mar 31
Account title
Amount
Account title
Amount
Text explanation
Mar 31
Account title
Amount
Account title
Amount
Text explanation
Mar 31
Account title
Amount
Account title
Amount
Text explanation
Mar 31
Account title
Amount
Account title
Amount
Text explanation
Mar 31
Account title
Amount
Account title
Amount
Mar 31
Account title
Amount
Account title
Amount
(d) Journalize the closing entries from the financial statement columns of the worksheet.
Mar 31
Account title
Amount
Account title
Amount
Account title
Account title
Amount
Mar 31
Account title
Text explanation
Account title
Mar 31
Account title
Amount
Account title
Account title
Account title
Mar 31
Account title
Amount
Account title
Text explanation
Mar 31
Account title
Account title
Mar 31
Account title
Account title
