Sherlock Holmes began operations as a private investigator on January 1, 2014. The trial balance columns of the worksheet for Sherlock Holmes, P.I., Inc. at March 31 are as follows.

Other data:
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.

Instructions
(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 theworksheet.

Transcribed Image Text:

Sherlock Holmes PI., Inc Worksheet For the Quarter Ended March 31, 2014 Trial Balance Account Titles Dr Cr. 11,410 5,920 1,250 2,400 30,000 Cash Accounts Receivable Supplics Prepaid Insurance Equipment Notes Payable Accounts Payable Common Stock Dividends Scrvice Revenuc Salaries and Wages Expense Travel Expense Rent Expense Miscellancous Expense 10,000 12,350 20,000 600 14,200 2,240 1,300 1,200 230 56,550 56,550