Ex4-2 Complete the worksheet

The adjusted trial balance columns of the worksheet for Savaglia Company are as follows.

SAVAGLIA COMPANY
Worksheet (Partial)
For the Month Ended April 30, 2017

Adjusted Trial Balance

Account Titles Dr. Cr.
Cash 10,000
Accounts Receivable 7,840
Prepaid Rent 2,280
Equipment 23,050
Accumulated Depreciation - Equipment 4,900
Notes Payable 5,700
Accounts Payable 4,920
Owner's Capital 27,960
Owner's Drawings 3,650
Service Revenue 15,590
Salaries and Wages Expense 10,840
Rent Expense 760
Depreciation Expense 671
Interest Expense 57
Interest Payable 57
Totals 59,127 59,127

Instructions:
Complete the worksheet.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in ce

SAVAGLIA COMPANY
Worksheet (Partial)
For the Month Ended April 30, 2017

Adjusted Trial Balance

Account Titles Dr. Cr.
Cash 10,000
Accounts Receivable 7,840
Prepaid Rent 2,280
Equipment 23,050
Accumulated Depreciation - Equipment 4,900
Notes Payable 5,700
Accounts Payable 4,920
 Owner's Capital 27,960
Owner's Drawings 3,650
Service Revenue 15,590
Salaries and Wages Expense 10,840
Rent Expense 760
Depreciation Expense 650
Interest Expense 57
Interest Payable 57
Totals 59,127 59,127
Net income
Totals

After you have completed the requirements of E4-2, consider these additional questions.
Answers are on the other tab in this file.
1. Suppose Accounts Receivable balance changed to $10,840 and Service Revenue changed to $1
the Balance Sheet?
2. Suppose Savaglia received a utility bill for $375 which they failed to record. What is the impact o

SAVAGLIA COMPANY
Worksheet (Partial)
For the Month Ended April 30, 2017

Adjusted Trial Balance

Account Titles Dr. Cr.
Cash 10,000
Accounts Receivable 7,840
Prepaid Rent 2,280
Equipment 23,050
Accumulated Depreciation - Equipment 4,900
Notes Payable 5,700
Accounts Payable 4,920
Owner's Capital 27,960
Owner's Drawings 3,650
Service Revenue 15,590
Salaries and Wages Expense 10,840
Utilities bill expense
Rent Expense 760
Depreciation Expense 650
Interest Expense 57
Interest Payable 57
Totals 59,127 59,127
Net income
Totals
 GLIA COMPANY
Partial)
Ended April 30, 2017

Income Statement Balance Sheet

Dr. Cr. Dr. Cr.

mber or a formula in cells with a "?" .

A COMPANY
eet (Partial)
Ended April 30, 2017

Income Statement Balance Sheet

Dr. Cr. Dr. Cr.
10,000
7,840
2,280
23,050
4,900
5,700
4,920
 27,960
3,650
15,590
10,840
760
650
57
57
12,307 15,590 46,820 43,537
3,283 3,283
15,590 15,590 46,820 46,820

Revenue changed to $18,590, what is the impact on the Income Statement and

d. What is the impact on the Income Statement and the Balance Sheet?

A COMPANY
eet (Partial)
Ended April 30, 2017

Income Statement Balance Sheet

Dr. Cr. Dr. Cr.
10,000
10,840
2,280
23,050
4,900
5,700
5,295
27,960
3,650
18,590
10,840
375
760
650
57
57
12,682 18,590 49,820 43,912
5,908 5,908
18,590 18,590 49,820 49,820
Ex 4-3 Prepare financial statements from worksheet
Worksheet data for Savaglia Company are presented below. The owner did not make any additional inves

SAVAGLIA COMPANY
Worksheet (Partial)
For the Month Ended April 30, 2017

Adjusted Trial Balance Income Statement

Account Titles Dr. Cr. Dr.
Cash 10,000
Accounts Receivable 7,840
Prepaid Rent 2,280
Equipment 23,050
Accumulated Depreciation - Equip 4,900
Notes Payable 5,700
Accounts Payable 4,920
Owner's Capital 27,960
Owner's Drawings 3,650
Service Revenue 15,590
Salaries and Wages Expense 10,840
Rent Expense 760
Depreciation Expense 650
Interest Expense 57
Interest Payable 57
Totals 59,127 59,127

Instructions:
Prepare an income statement, an owner's equity statement, and a classified balance sheet.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in ce

SAVAGLIA COMPANY
Income Statement
For the Month Ended April 30, 2017
Revenues
Service revenue $ 15,590

Expenses
Salaries and wages expense $ 10,840
Rent Expense 760
Depreciation expense 650
Interest expense 57
Total expenses 12,307
Net income $ 3,283
 SAVAGLIA COMPANY
Owner's Equity Statement
For the Month Ended April 30, 2017
Owner's Capital, April 1 $ 27,960
Add: Net income 3283
$ 31,243
Less: Drawings 3650
Owner's Capital, April 30 $ 27,593

SAVAGLIA COMPANY
Balance Sheet
April 30, 2017
Assets
Current assets
Cash $ 10,000
Accounts receivable 7,840
Prepaid rent 2,280
Total current assets $ 20,120
Property, plant, and equipment
Equipment 23,050
Less: Accumulated depreciation - equipment 4,900 18,150
Total assets $ 38,270

Liabilities and Owner's Equity

Current liabilities
Notes payable $ 5,700
Accounts payable 4,920
Interest payable 57
Total current liabilities $ 10,677
Owner's Equity
Owner's Capital 27,960
Total liabilities and owner's equity $ 38,637

After you have completed the requirements of E4-3, consider these additional questions.
Answers are on the other tab in this file.
1. Suppose Accounts Receivable balance changed to $10,840 and Service Revenue changed to $1
the Balance Sheet?
2. Suppose Savaglia received a utility bill for $375 which they failed to record. What is the impact o

SAVAGLIA COMPANY
 Income Statement
For the Month Ended April 30, 2017
Revenues
Service revenue $ 18,590

Expenses
Salaries and wages expense $ 10,840
Utility bill $ 375
Rent Expense 760
Depreciation expense 650
Interest expense 57
Total expenses 12,682
Net income $ 5,908

SAVAGLIA COMPANY
Owner's Equity Statement
For the Month Ended April 30, 2017
Owner's Capital, April 1 $ 27,960
Add: Net income 5908
$ 33,868
Less: Drawings 3650
Owner's Capital, April 30 $ 30,218

SAVAGLIA COMPANY
Balance Sheet
April 30, 2017
Assets
Current assets
Cash $ 10,000
Accounts receivable 10,840
Prepaid rent 2,280
Total current assets $ 23,120
Property, plant, and equipment
Equipment 23,050
Less: Accumulated depreciation - equipment 4,900 18,150
Total assets $ 41,270

Liabilities and Owner's Equity

Current liabilities
Notes payable $ 5,700
Accounts payable 5,295
Interest payable 57
Total current liabilities $ 11,052
Owner's Equity
Owner's Capital 30,218
Total liabilities and owner's equity $ 41,270
ake any additional investments in the business in April.

ncome Statement Balance Sheet

Cr. Dr. Cr.

ed balance sheet.
mber or a formula in cells with a "?" .
Revenue changed to $18,590, what is the impact on the Income Statement and

d. What is the impact on the Income Statement and the Balance Sheet
P4-1A Prepare a worksheet, financial statements, and adjusting and closing entries
The trial balance columns of the worksheet for Warren Roofing at March 31, 2017 are as follows.

WARREN ROOFING
Worksheet
For the Month Ended March 31, 2017
Trial Balance
Account Titles Dr. Cr.
Cash 4,500
Accounts Receivable 3,200
Supplies 2,000
Equipment 11,000
Accumulated Depreciation-Equipment 1,250
Accounts Payable 2,500
Unearned Service Revenue 550
Owner's Capital 12,900
Owner's Drawings 1,100
Service Revenue 6,300
Salaries and Wages Expense 1,300
Miscellaneous Expense 400
23,500 23,500

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

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 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.
(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.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a

(a) W

For the M

Account Titles Trial Balance

Dr.
 Cash 4,500
Accounts Receivable 3,200
Supplies 2,000
Equipment 11,000
Accumulated Depreciation-Equipment
Accounts Payable
Unearned Service Revenue
Owner's Capital
Owner's Drawings 1,100
Service Revenue
Salaries and Wages Expense 1,300
Miscellaneous Expense 400
Totals 23,500
Supplies Expense
Depreciation Expense
Salaries and Wages Payable
Totals
Net income
Totals

(b) WARREN ROOFING

Income Statement
For the Month Ended March 31, 2017
Revenues
Service Revenues
Less: Expenses
Salaries and wages expense $ 2,000
Supplies expense 1,520
Miscellaneous expense 400
Depreciation expense 250
Total expenses
Net income

WARREN ROOFING
Owner's Equity Statement
For the Month Ended March 31, 2017
Owner's Capital, March 1
Add: Investments $ 10,000
Net income 2,420

Less: Drawings
 Owner's Capital, March 31

WARREN ROOFING
Balance Sheet
March 31, 2017
Assets
Current Assets
Cash 4,500
Accounts receivable 3,200
Supplies 480
Total current assets
Property, plant and equipment
Equipment 11,000
Less: Accumulated depreciation -equipment 1,500
Total assets

Liabilities and Owner's Equity

Current liabilities
Accounts payable 2,500
Salaries and wages payable 700
Unearned service revenue 260
Total current liabilities
Owner's equity
Owner's capital
Total liabilities and owner's equity

(c ) Adjusting entries:

Mar 31 Supplies Exp. A/c

To Suppies A/c

Mar 31 Depreciaqtion A/c

Accumulated Depreciation A/c

Mar 31 Unearned Service Revenue A/c

Service Revenue A/c

Mar 31 Salaries and Wages A/c

Acuured Salaries and Wages Payable A/c
(d) Closing entries:

0 Mar 31 Service Revenue A/c

Income Statement A/c

Mar 31 Income Statement A/c

Salaries and wages Exp. A/c
Miscellaneous Exp. A/c
Supplies A/c
Depreciation A/c

Mar 31 Income Statement A/c

Owners Capital A/ c

Mar 31 Owners Capital A/c

Owners Drawing A/c

After you have completed the requirements of P4-1A, consider these additional questions.
Answers are on the other tab in this file.
1. Suppose the March 31 balance of Supplies changed to $750, show how this changes the Worksh
adjusting and closing entries.
2. Suppose the March 31 balance of Unearned Service Revenue changed to $350, show how this c
adjusting and closing entries.

(a )

Account Titles Trial Balance

Dr.
Cash 4,500
Accounts Receivable 3,200
Supplies 2,000
Equipment 11,000
Accumulated Depreciation-Equipment
Accounts Payable
Unearned Service Revenue
Owner's Capital
 Owner's Drawings 1,100
Service Revenue
Salaries and Wages Expense 1,300
Miscellaneous Expense 400
Totals 23,500
Supplies Expense
Depreciation Expense
Salaries and Wages Payable
Totals
Net income
Totals

(b)

WARREN ROOFING
Income Statement
For the Month Ended March 31, 2017
Revenues
Service Revenues
Expenses
Salaries and wages expense $ 2,000
Supplies expense 750
Miscellaneous expense 400
Depreciation expense 250
Total expenses
Net income

WARREN ROOFING
Owner's Equity Statement
For the Month Ended March 31, 2017
Owner's Capital, March 1
Add: Investments $ 10,000
Net income 3,100

Less: Drawings
Owner's Capital, March 31

WARREN ROOFING
Balance Sheet
March 31, 2017
 Assets
Current Assets
Cash 4,500
Accounts receivable 3,200
Supplies 1,250
Total current assets
Property, plant and equipment
Equipment 11,000
Less: Accumulated depreciation -equipment 1,500
Total assets

Liabilities and Owner's Equity

Current liabilities
Accounts payable 2,500
Salaries and wages payable 700
Unearned service revenue 350
Total current liabilities
Owner's equity
Owner's capital
Total liabilities and owner's equity

(c )
Adjusting entries:

Mar 31 Supplies Exp. A/c

To Suppies A/c

Mar 31 Depreciation A/c

Accumulated Depreciation A/c

Mar 31 Unearned Service Revenue A/c

Service Revenue A/c
 Mar 31 Salaries and Wages A/c
Acuured Salaries and Wages Payable A/c

(d )
Closing entries:

Mar 31 Service Revenue A/c

Income Statement A/c

Mar 31 Income Statement A/c

Salaries and wages Exp. A/c
Miscellaneous Exp. A/c
Supplies A/c
Depreciation A/c

Mar 31 Income Statement A/c

Owners Capital A/ c

Mar 31 Owners Capital A/c

Owners Drawing A/c
2017 are as follows.

of March
al investment

worksheet.
r or a formula in cells with a "?" .

WARREN ROOFING
Worksheet
For the Month Ended March 31, 2017

rial Balance Adjustments Adjusted Trial Balance Income Statement

Cr. Dr. Cr. Dr. Cr. Dr.
 4500
3200
1520 480
11000
1,250 250 1500
2,500 2500
550 290 260
12,900 12900
1100
6,300 290 6590
700 2000 2000
400 400
23,500
1520 1520 1520
250 250 250
700 700
2760 2760 24450 24450 4170
2420
6590

$ 6,590

4,170
$ 2,420

$2,900

12,420
15,320
1,100
$ 14,220

$ 8,180

9,500
$ 17,680

3,460

14,220
$ 17,680

480
480

250
250

260
260

700
700
 6590
6,590

4,170
2,000
400
1,520
250

2,420
2,420

1,100
1,100

al questions.

how this changes the Worksheet, Income Statement, the Balance Sheet,

ged to $350, show how this changes the Worksheet, Income Statement, the Balance Sheet,

WARREN ROOFING
Worksheet
For the Month Ended March 31, 2017
rial Balance Adjustments Adjusted Trial Balance Income Statement
Cr. Dr. Cr. Dr. Cr. Dr.
4500
3200
750 1250
11000
1,250 250 1500
2,500 2500
550 200 350
12,900 12900
 1100
6,300 200 6,500
700 2000 2000
400 400
23,500
750 750 750
250 250 250
700 700
1900 1900 24450 24450 3400
3100
6500

$ 6,500

3,400
$ 3,100

$2,900

13,100
16,000
1,100
$ 14,900
$ 8,950

9,500
$ 18,450

3,550

14,900
$ 18,450

750
750

250
250

350
350
700
700

6590
6,590

4,170
2,000
400
1,520
250

3,100
3,100

1,100
1,100
Income Statement Balance Sheet
Cr. Dr. Cr.
 4500
3200
480
11000 `
1500
2500
260
12900
1100
6590

700
6590 20280 17860
2420
6590 20280 20280
Income Statement Balance Sheet
Cr. Dr. Cr.
4500
3200
1250
11000
1500
2500
350
12900
 1100
6500

700
6500 21050 17950
3100
6500 21050 21050