Problem-1: Completing the Accounting Cycle

1. A physical count reveals only $480 of roofing supplies on hand
2. Depreciation for March is $250.
3. Unearned revenue amounted to $260 at March 31.
4. Accrued salaries are $700.

Instructions

1. Enter the trial balance on a worksheet and complete the worksheet.
2. Prepare an income statement and owner's equity statement for the month of March and a classified balance sheet at March 31. T. Warren made an additional investment in the business of $10,000 in March.
3. Journalize the adjusting entries from the adjustments columns of the worksheet
4. Journalize the closing entries from the financial statement columns of the worksheet.

Solution