ch04_3.pdf - CHAPTER 4 PROBLEMS SET B P4-1B Michael Pevnick began operations as a private investigator on January 1 2017 The trial balance columns of

ch04_3.pdf - CHAPTER 4 PROBLEMS SET B P4-1B Michael Pevnick...

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CHAPTER 4 PROBLEMS: SET B P4-1B Michael Pevnick began operations as a private investigator on January 1, 2017. The trial balance columns of the worksheet for Michael Pevnick, P.I., at March 31 are as follows. MICHAEL PEVNICK, P.I. Worksheet For the Quarter Ended March 31, 2017 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 Owner’s Capital 20,000 Owner’s Drawings 600 Service Revenue 13,620 Salaries and Wages 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 $480. 2. Depreciation is $800 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 performed but unbilled at March 31 total $1,030. Instructions (a) Enter the trial balance on a worksheet and complete the worksheet. (b) Prepare an income statement and owner’s equity statement for the quarter and a classifi ed balance sheet at March 31. M. Pevnick did not make any additional investments in the business during the quarter ended March 31, 2017. (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. P4-2B The adjusted trial balance columns of the worksheet for Greenwood Company are as follows. GREENWOOD COMPANY Worksheet For the Year Ended December 31, 2017 Adjusted Account Trial Balance No. Account Titles Dr. Cr. 101 Cash 18,800 112 Accounts Receivable 16,200 126 Supplies 2,300 130 Prepaid Insurance 4,400 157 Equipment 46,000 158 Accumulated Depreciation—Equipment 20,000 200 Notes Payable 20,000 201 Accounts Payable 8,000 Prepare worksheet, financial statements, and adjusting and closing entries.
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