A. Thomas Magnum began operations as a private investigator on January 1, 2008. The trial balance columns of the Balance Sheet worksheet for Thomas Magnum, P.I. at March 31 are as follows.

Other data:
1. Supplies on hand total $380.
2. Depreciation is $1,000 per quarter.
3. Interest accrued on 6-month note payable, issued January 1, $300.
4. Insurance expires at the rate of $200 per month. Services provided but unbilled at March 31 total $530.
B. Prepare an income statement and owner's equity statement for the quarter and a classified balance sheet at March 31. T. Magnum did not make any additional investments in the business during the quarter ended March 31, 2008. (List multiple entries in descending order of amount. If answer is zero, please enter 0, do not leave any fields blank. List assets in order of liquidity and liabilities in descending order of amount but with notes payable first.)
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. (List multiple debit/credit entries in descending order ofamount.)

Transcribed Image Text:

THOMAS MAGNUM, PI Worksheet For the Quarter Ended March 31, 2008 Trial Balance Account Titles r. S11,400 S5,620 $1,050 S2,400 $30,000 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Notes Payable Accounts Payable T. Magnum, capital T. Magnum, Drawings Service Revenue Salaries Expense Travel Expense Rent Expense Miscellaneous Expense Total S10,000 S12,350 S20,000 $600 S13.620 S2.200 S1,300 S1,200 S200 $55.970 S55.970