(1) Unbilled revenue for services performed at March 31 was $500.

(2) Depreciation on equipment for the month was $300.

(3) One-twelfth of the insurance expired.

(4) An inventory count shows $250 of cleaning supplies on hand at March 31.

(5) Accrued but unpaid employee salaries were $550.

(d) Prepare the income statement and owner’s equity statement for March and a
classified balance sheet at March 31

(e) Journalize and post adjusting entries. Use page J2 for the journal.

(f) Journalize and post closing entries and complete the closing process. Use
page J3 for the journal.
(g) Prepare a post-closing trial balance at March 31.
P4-5B
Date Account tittles and Explanation Ref D
1-Mar Cash 101 10,000
Owner's Capital 301

1-Mar Equipment 157 6,000

Cash 101
Accounts Payable 201

3-Mar Supplies 126 1,200

Accounts Payable 201

5-Mar Prepaid insurance 130 1,200

Cash 101

14-Mar Accounts Receivable 112 4,800

Service Revenue 400

18-Mar Accounts Payable 201 2,000

Cash 101

20-Mar Salaries and Wages Expense 726 1,800

Cash 101

21-Mar Cash 101 1,400

Accounts receivable 112

28-Mar Accounts Receivable 112 2,500

Service Revenue 400

31-Mar Gasoline Expense 633 200

Cash 101

31-Mar Owner's Drawings 306 700

Cash 101
 C

10,000

3,000
3,000

1,200

1,200

4,800

2,000

1,800

1,400

2,500

200

700
SHAW’S CARPET CLEANERS
Worksheet
For the Month Ended March 31, 2017

Trial Balance Adjustments Adjusted Trial Balance

Account Titles Dr Cr Dr Cr Dr
Cash 2,500 2,500
Accounts receivable 5,900 500 6,400
Supplies 1,200 950 250
Prepaid Insurance 1,200 100 1,100
Equipment 6,000 6,000
Accounts Payable 2,200
Owner's Capital 10,000
Owner's Drawings 700 700
Service Revenue 7,300 500
Gasoline Expense 200 200
Salaries and Wages Expense 1,800 550 2,350
Totals 19,500 19,500
Depreciation Expense 300 300
Accum. Depreciation Equipment 300
Insurance Expense 100 100
Supplies Expense 950 950
Salaries and Wages Payable 550
Totals 2,400 2,400 20,850
Net Income
Totals
Adjusted Trial Balance Income Statement Balance Sheet
Cr Dr Cr Dr Cr
2,500
6,400
250
1,100
6,000
2,200 2,200
10,000 10,000
700
7,800 7,800
200
2,350

300 300
300
100
950
550 550
20,850 3,900 7,800 16,950 13,050
3,900 3,900
7,800 7,800 16,950 16,950
 101
Cash
Date Explanation Ref Debit Credit Balance
1-Mar J1 10,000 10,000
1-Mar J1 3,000 7,000
5-Mar J1 1,200 5,800
18-Mar J1 2,000 3,800
20-Mar J1 1,800 2,000
21-Mar J1 1,400 3,400
31-Mar J1 200 3,200
31-Mar J1 700 2,500

112
Accounts Receivable
Date Explanation Ref Debit Credit Balance
14-Mar J1 4,800 4,800
21-Mar J1 1,400 3,400
28-Mar J1 2,500 5,900
31-Mar Adjusting J2 500 6,400

126
Supplies
Date Explanation Ref Debit Credit Balance
3-Mar J1 1,200 1,200
31-Mar Adjusting J2 950 250

130
Prepaid Insurance
Date Explanation Ref Debit Credit Balance
5-Mar J1 1,200 1,200
31-Mar Adjusting J2 100 1,100

157
Equipment
Date Explanation Ref Debit Credit Balance
5-Mar J1 6,000 6,000

158
Accumulated Depreciation-Equipment
Date Explanation Ref Debit Credit Balance
31-Mar Adjusting J2 300 300

201
Accounts Payable
Date Explanation Ref Debit Credit Balance
 1-Mar J1 3,000 3,000
3-Mar J1 1,200 4,200
18-Mar J1 2,000 2,200

212
Salaries and Wages Payable
Date Explanation Ref Debit Credit Balance
31-Mar Adjusting J2 550 550

301
Owner's Capital
Date Explanation Ref Debit Credit Balance
1-Mar J1 10,000 10,000
31-Mar Closing J3 3,900 13,900
31-Mar Closing J3 700 13,200

306
Owner's Drawings
Date Explanation Ref Debit Credit Balance
31-Mar J1 700 - 700
31-Mar Closing J3 700 -

350
Income Summary
Date Explanation Ref Debit Credit Balance
31-Mar Closing J3 - 7,800 7,800
31-Mar Closing J3 3,900 3,900
31-Mar Closing J3 3,900 -

400
Service Revenue
Date Explanation Ref Debit Credit Balance
14-Mar J1 4,800 4,800
28-Mar J1 2,500 7,300
31-Mar Adjusting J2 500 7,800
31-Mar Closing J3 7,800 -

631
Supplies Expense
Date Explanation Ref Debit Credit Balance
3-Mar J1 950 950
31-Mar Closing J2 950 -
 633
Gasoline Expense
Date Explanation Ref Debit Credit Balance
31-Mar J1 200 200
31-Mar Closing J3 200 -

711
Depreciation Expense
Date Explanation Ref Debit Credit Balance
31-Mar Adjusting J2 300 300
31-Mar Closing J3 300 -

722
Insurance Expense
Date Explanation Ref Debit Credit Balance
31-Mar Adjusting J2 100 100
31-Mar Closing J3 100 -

726
Salaries and Wages Expense
Date Explanation Ref Debit Credit Balance
20-Mar J1 1,800 1,800
31-Mar Adjusting J2 550 2,350
31-Mar Closing J3 2350 -
 SHAW’S CARPET CLEANERS
Income Statement
For the Month Ended March 31, 2017

Revenues
Service Revenue

Expenses
Salaries and Wages Expense 2,350
Supplies expense 950
Depreciation expense 300
Gasoline expense 200
Insurance expense 100

Net Income

SHAW’S CARPET CLEANERS

Owner’s Equity Statement
For the Month Ended March 31, 2017

Owner’s Capital, March 1

Add: Investments 10,000
Net Income 3,900

Less: Drawings
Owner’s Capital, March 31

SHAW’S CARPET CLEANERS

Balance Sheet
March 31, 2017

Assets
Current assets
Cash 2,500
Accounts receivable 6,400
Supplies 250
Prepaid insurance 1,100
Total Current Assets

Property, plant, and equipment

Equipment 6,000
Less: Accumulated depreciation-equipment 300
Total Assets

Liabilities and Owner’s Equity

Current liabilities
Accounts payable 2,200
Salaries and wages payable 550
Total current liabilities
Owner’s equity
Owner’s capital
Total liabilities and owner’s equity
 7,800

3,900
3,900

13,900
13,900
700
13,200

10,250

5,700
15,950

2,750
13,200
15,950
Date Account Titles and Explanation Ref. Debit Credit

Adjusting Entry
31-Mar Accounts Receivable 112 500
Service Revenue 400 500
31-Mar Dep Expense 711 300
Accum Dep- Equipment 158 300
31-Mar Insurance Expense 722 100
Prepaid Insurance 130 100
31-Mar Supplies Expense 631 950
Supplies 126 950
31-Mar Salaries and Wages Expense 726 550
Salaries and Wages Payable 212 550
Closing Entry
31-Mar Service Revenue 400 7,800
Income Summary 350 7,800

31-Mar Income Summary 350 3,900

Salaries and Wages Expense 726 2,350
Depreciation Expense 711 300
Insurance Expense 722 100
Supplies Expense 631 950
Gasoline Expense 633 200

31-Mar Income Summary 350 3,900

Owner's Capital 301 3,900

31-Mar Owner's Capital 301 700

Owner's Drawing 306 700
 SHAW’S CARPET CLEANERS
Post-Closing Trial Balance
March 31, 2017
Dr Cr
Cash 2,500
Accounts Receivable 6,400
Supplies 250
Prepaid Insurance 1,100
Equipment 6,000
Accumulated Depreciation—Equipment 300
Accounts Payable 2,200
Salaries and Wages Payable 550
Owner’s Capital 13,200
16,250 16,250