prepare an income statement and owner rsquo s equity statement for the month of marc 654883
The trial balance columns of the work sheet for Undercover Roofing at March 31, 2005.
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UNDERCOVER ROOFING |
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Work sheet |
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For the month ended March 31, 2005 |
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Trial balance |
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Debit |
Credit |
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RM |
RM |
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Cash |
2,500 |
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Account receivable |
1,800 |
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Roofing supplies |
1,100 |
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Equipment |
6,000 |
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Accumulated depreciation Equipment |
1,200 |
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Account payable |
1,400 |
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Unearned revenue |
300 |
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I.Spy, capital |
7,000 |
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I.Spy, drawing |
600 |
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Service revenue |
3,000 |
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Salaries expense |
700 |
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Miscellaneous expense |
200 |
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12,900 |
12,900 |
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Other data :
- A physical count reveals only RM 140 of roofing supplies on hand.
- Depreciation for March is RM 200.
- Unearned revenue amounted to RM 130 after adjustment on March 31.
- Accrued salaries are RM 350.
Instructions
a) Enter the trial balance on a work sheet and complete the work sheet.
b) Journalize the adjusting entries from the adjustments columns of the work sheet.
c) Journalize the closing entries from the financial statement columns of the work sheet.
d) Prepare an income statement and owner’s equity statement for the month of March.