Generally Accepted Accounting Principles and Thomas Magnum

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ASSIGNMENT 4
WEEK 3
SAMUEL GEORGE
Financial Accounting / CHAPTER 4
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P4-1A
| Thomas Magnum began operations as a private investigator on =anuary 1, 2008. The trial balance columns of the worksheet for THOMAS =AGNUM, P.I., INC. at March 31 are as follows.  | THOMAS MAGNUM, P.I., =NC.|

Worksheet|
For the Quarter Ended March 31, =008|
 | Trial Balance|
 |  |  |
Account Titles| Dr.| Cr.|
Cash| 11,400|  |
Accounts Receivable| 5,620|  |
Supplies| 1,050|  |
Prepaid Insurance| 2,400|  |
Equipment| 30,000|  |
Notes Payable|  | 10,000|
Accounts Payable|  | 12,350|
Common Stock|  | 20,000|
Dividends| 600|  |
Service Revenue|  | 13,620|
Salaries Expense| 2,200|  |
Travel Expense| 1,300|  |
Rent Expense| 1,200|  |
Miscellaneous Expense| 200| |
 | -------------------------------------------------
55,970| 55,970|
Other data: 1. Supplies on hand total =380. 2. Depreciation is $1,000 per =uarter. 3. Interest accrued on 6-month =ote payable, issued January 1, $300. 4. Insurance expires at the rate =f $200 per month. 5. Services provided but unbilled =t March 31 total $530. | |

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| Correct.|
Complete the worksheet. (If answer is zero, please =nter 0. Do not leave any fields blank.) THOMAS MAGNUM, P.I., =NC.| Worksheet|
For the Quarter Ended March 31, =008|
 | Trial Balance| Adjustments| Adjusted Trial =alance| Income Statement| Balance =heet| Account Titles| Dr.| Cr.| Dr.| Cr.| Dr.| Cr.| Dr.| Cr.| Dr.| Cr.| Cash| 11,400|  | 0 | 0 | 11400 | 0 | 0 | 0 | 11400 | 0 | Accounts Receivable| 5,620|  | 530 | 0 | 6150 | 0 | 0 | 0 | 6150 | 0 | Supplies| 1,050|  | 0 | 670 | 380 | 0 | 0 | 0 | 380 | 0 | Prepaid Insurance| 2,400|  | 0 | 600 | 1800 | 0 | 0 | 0 | 1800 | 0 | Equipment| 30,000|  | 0 | 0 | 30000 | 0 | 0 | 0 | 30000 | 0 | Notes Payable|  | 10,000| 0 | 0 | 0 | 10000 | 0 | 0 | 0 | 10000 | Accounts Payable|  | 12,350| 0 | 0 | 0 | 12350 | 0 | 0 | 0 | 12350 | Common Stock|  | 20,000| 0 | 0 | 0 | 20000 | 0 | 0 | 0 | 20000 | Dividends| 600|  | 0 | 0 | 600 | 0 | 0 | 0 | 600 | 0 | Service Revenue|  | 13,620| 0 | 530 | 0 | 14150 | 0 | 14150 | 0 | 0 | Salaries Expense| 2,200|  | 0 | 0 | 2200 | 0 | 2200 | 0 | 0 | 0 | Travel Expense| 1,300|  | 0 | 0 | 1300 | 0 | 1300 | 0 | 0 | 0 | Rent Expense| 1,200|  | 0 | 0 | 1200 | 0 | 1200 | 0 | 0 | 0 | Miscellaneous Expense| 200| | 0 | 0 | 200 | 0 | 200 | 0 | 0 | 0 |      Totals| ------------------------------------------------- 55,970| -------------------------------------------------

55,970|  |  |  |  |  |  |  |  |
Supplies Expense|  |  | 670 | 0 | 670 | 0 | 670 | 0 | 0 | 0 | Depreciation Expense|  |  | 1000 | 0 | 1000 | 0 | 1000 | 0 | 0 | 0 | Accumulated Depreciation|  |  | 0 | 1000 | 0 | 1000 | 0 | 0 | 0 | 1000 | Interest Expense|  |  | 300 | 0 | 300 | 0 | 300 | 0 | 0 | 0 | Interest Payable|  |  | 0 | 300 | 0 | 300 | 0 | 0 | 0 | 300 | Insurance Expense|  |  | ------------------------------------------------- 600 | -------------------------------------------------

0 | -------------------------------------------------
600 | -------------------------------------------------
0 | -------------------------------------------------
600 | -------------------------------------------------
0 | -------------------------------------------------
0 | -------------------------------------------------
0 |
    Totals  |  |  | ------------------------------------------------- 3100 | -------------------------------------------------
3100 | -------------------------------------------------
57800 | -------------------------------------------------
57800 | 7470 | 14150 | 50330 | 43650...
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