P$4-1$B Prepare worksheet, financial statements, and adjusting, and closing entries.

Pevnick Inc. began operations as a detective agency on January $1,2015.$ The trial balance columns of the worksheet for

Pevnick Inc. at March $31$ are as follows.

HEIDI JARA CLEANING SERVICES

Worksheet

For the Quarter Ended July $31,2015$

Trial Balance

Account Titles Dr$.$ Cr$.$

Cash $6,250$

Accounts Receivable $7,100$

Supplies $2,100$

Prepaid Insurance $1,800$

Equipment $9,000$

Notes Payable

Accounts Payable $4,200$

Common Stock $20,000$

Dividends $5,600$

Service Revenue $10,500$

Salaries and Wages Expense $2,500$

Travel Expense $350$

Rent Expense

Miscellaneous Expense

$34,70034,700$

Other data:

$(1)$ Unbilled and uncollected revenue for services performed at July $31$ were $$2,700.$

$(2)$ Depreciation on equipment for the month was $$500.$

$(3)$ One$-$twelfth of the insurance expired.

$(4)$ An inventory count shows $$600$ of cleaning supplies on hand at July $31.$

$(5)$ Accrued but unpaid employee salaries were $$1,000.$

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 the worksheet.

NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a $"?".$