At the end of September, Thad took a complete inventory of his supplies and found the following:

3 dozen 1/4" screws at a cost of $5.00 a dozen
6 dozen 1/2" screws at a cost of $10.00 a dozen
5 cartons of computer inventory paper at a cost of $8 a carton
7 feet of coaxial cable at a cost of $11.00 per foot

After speaking to his accountant, he found that a reasonable depreciation amount for each of his long-term assets is as follows:

Thad uses the straight-line method of depreciation and declares no salvage value for any of the assets. If any long-term asset is purchased in the first 15 days of the month, he will charge depreciation for the full month. If an asset is purchased on the 16th of the month, or later, he will not charge depreciation in the month it was purchased.

August and September’s rent has now expired.

Assignment
Use your trial balance from the completed problem in Chapter 3 and the adjusting information given here to complete the worksheet for the three months ended September 30, 201X. From the worksheets, prepare the financial statements.