Eric Baker began operations as a private investigator on January 1, 2014. The trial balance columns of the worksheet for Eric Baker, P.I., Inc. at March 31 are as follows.
Eric Baker P.I., Inc.
For the Quarter Ended March 31, 2014
Account Titles Dr. Cr.
Accounts Receivable 5,920
Prepaid Insurance 2,400
Notes Payable 10,000
Accounts Payable 12,350
Common Stock 20,000
Service Revenue 14,200
Salaries and Wages Expense 2,240
Travel Expense 1,300
Rent Expense 1,200
Miscellaneous Expense 230
1.Supplies on hand total $480.
2.Depreciation is $720 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 provided but unbilled at March 31 total $1,080.
(a) Enter the trial balance on a worksheet and complete the worksheet.
(b) Prepare an income statement and a retained earnings statement for the quarter and a classified balance sheet at March 31.
(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.