Thomas Magnum began operations as a private investigator on January 1, 2008. The trial balance columns of the worksheet for THOMAS MAGNUM, P.I., INC. at March 31 are as follows. THOMAS MAGNUM, P.I., INC. Worksheet For the Quarter Ended March 31, 2008 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 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 $530. Complete the worksheet. THOMAS MAGNUM, P.I., INC. Worksheet For the Quarter Ended March 31, 2008 Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. 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 Totals 55,970 55,970 Supplies Expense Depreciation Expense Accumulated Depreciation Interest Expense Interest Payable Insurance Expense Totals Net Income Totals Prepare an income statement and a retained earnings statement for the quarter and a classified balance sheet at March 31. No additional common stock was issued during the quarter ended March 31, 2008. THOMAS MAGNUM, P.I., INC. Income Statement For the Quarter Ended March 31, 2008 Revenues $ Expenses $ Total expenses Net income $ THOMAS MAGNUM, P.I., INC. Retained Earnings Statement For the Quarter Ended March 31, 2008 $ Add: Less: $ THOMAS MAGNUM, P.I., INC. Balance Sheet March 31, 2008 Assets Current Assets $ Total current assets Property, plant and equipment $ Less: Total assets $ Liabilities and Stockholders' Equity Current liabilities $ Total current liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ Journalize the adjusting entries from the adjustments columns of the worksheet. Date Description Debit Credit Mar. 31 (To adjust supplies.) Mar. 31 (To adjust depreciation.) Mar. 31 (To adjust interest.) Mar. 31 (To adjust insurance.) Mar. 31 (To adjust services.) Journalize the closing entries from the financial statement columns of the worksheet. Date Description/Account Debit Credit Mar. 31 (To close revenue account.) Mar. 31 (To close expense accounts.) Mar. 31 (To close net income to retained earnings.) Mar. 31 (To close dividends to capital.)