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    Trial Balance and Journal Entries and Income Statements

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    The trial balance columns of the work sheet for Phantom Roofing Inc. at March 3l, 2002, are as follows:
    Work Sheet
    ? For the Month Ended March 31, 2002
    Trial balance
    Account titles______ Debit Credit
    Cash 2,500
    Accounts receivable 1,600
    Roofing supplies 1,100
    Equipment 6,000
    Accumulated depreciation-Equipment 1,200
    Accounts payable 1,100
    Unearned revenue 300
    Common stock 5,000
    Retained earnings 2,000
    Dividends 600
    Service revenue 3.000
    Salaries expense 700
    Miscellaneous expense 100
    12,600 12.600
    Other data:
    (1) A physical count reveals only $220 of roofing supplies on hand.
    (2) Depreciation for March is $200.
    (3) Unearned revenue amounted to $200 after adjustment on March 31.
    (4) Accrued salaries are $400.
    (a) Enter the trial balance on a work sheet and complete the work sheet.
    (b) Prepare an income statement and owner's equity statcment for the month of March and a classified balance sheet at March 31. No additional issuances of stock occurred in March.
    (c) Journalize the adjusting entries from the adjustments columns of the work sheet.
    (d) Journalize the closing entries from the financial statement columns of the work sheet.

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