a.

Sherlock Holmes Agency

Worksheet for the year ended in December 31, 2020
Trial Balance Adjustments
Account titles Dr. Cr. Dr. Cr.
Cash 13,800
Accounts receivables 28,300
Prepaid insurance 3,600 1,500
Land 67,000
Buildings 127,000
Equipment 59,000
Accounts payable 12,500
Unearned revenue 6,000 5,000
Mortgage payable 120,000
Owner's capital 144,000
Owner's drawings 22,000
Service revenue 90,700 5,000
Rent revenue 29,000
Salaries and wages expense 42,000
Advertising expense 20,500
Utilities expense 19,000
Total 402,200 402,200

Insurance expense 1,500

Depreciation expense 6,600
Accumulated depreciation-Buildings 3,000
Accumulated depreciation-Equipments 3,600
Interest expense 10,000
Interest payable 10,000
Total 23,100 23,100
Net income
Total

b. Sherlock Holmes Agency

Adjusting Entries
1 Insurance expense 1,500
Prepaid insurance 1,500
2 Unearned revenue 5,000
Service revenue 5,000
3 Depreciation expense 3,000
Accumulated depreciation-Buildings 3,000
4 Depreciation expense 3,600
Accumulated depreciation-Equipments 3,600
5 Interest expense 10,000
Interest payable 10,000

c. Sherlock Holmes Agency

Closing Entries
Service revenue 95,700
 Rent revenue 29,000
Income Summary 124,700
Income Summary 99,600
Salaries and wages expense 42,000
Advertising expense 20,500
Utilities expense 19,000
Insurance expense 1,500
Depreciation expense 6,600
Interest expense 10,000
Income Summary 25,100
Owner's capital 25,100
Owner's capital 22,000
Owner's drawings 22,000

d. Sherlock Holmes Agency

Balance Sheet
December 31, 2020
Assets
Current asset
Cash 13,800
Accounts receivables 28,300
Prepaid insurance 2,100
Total current asset 44,200
Fixed asset
Land 67,000
Buildings 127,000
less. Accumulated depreciation-Buildings 3,000
Equipment 59,000
less. Accumulated depreciation-Equipment 3,600
Total fixed asset 246,400
Total asset 290,600

Liabilities and Owner's Equity

Current Liabilities
Accounts payable 12,500
Unearned rent revenue 1,000
Interest payable 10,000
Total current liabilities 23,500
Long-term liabilities
Mortgage payable 120,000
Total Liabilities 143,500
Owner's Equity
Owner's capital 147,100
Total Equity 147,100
Total Liabilities and owner's equity 290,600

e. Sherlock Holmes Agency

Adjusting Entries
Prepaid insurance 1,500
Insurance expense 1,500
Service revenue 5,000
Unearned revenue 5,000
Accumulated depreciation-Buildings 3,000
Depreciation expense 3,000
Accumulated depreciation-Equipments 3,600
Depreciation expense 3,600
Interest payable 10,000
Interest expense 10,000
 Agency
in December 31, 2020
Adj. Trial Balance Income statement Balance sheet
Dr. Cr. Dr. Cr. Dr. Cr.
13,800 13,800
28,300 28,300
2,100 2,100
67,000 67,000
127,000 127,000
59,000 59,000
12,500 12,500
1,000 1,000
120,000 120,000
144,000 144,000
22,000 22,000
95,700 95,700
29,000 29,000
42,000 42,000
20,500 20,500
19,000 19,000

1,500 1,500
6,600 6,600
3,000 3,000
3,600 3,600
10,000 10,000
10,000 10,000
418,800 418,800 99,600 124,700 319,200 294,100
25,100 25,100
124,700 124,700 319,200 319,200
 EDOGAWA DETECTIVE AGENCY
Trial Balance
April 30, 2017
Cash $4,100
Accounts Receivable $3,200
Supplies $800
Equipment $10,600
Accumulated Depreciation—Equip. $1,350
Accounts Payable $2,100
Salaries and Wages Payable $700
Unearned Service Revenue $890
Owner’s Capital $12,900
Service Revenue $5,450
Salaries and Wages Expense $3,300
Advertising Expense $600
Miscellaneous Expense $290
Depreciation Expense $500

Incorrect Entries Correct Entries

Dr Cr Dr Cr
1 Cash $950 Cash $590
Account Receivable $950 Account Receivable $590

2 Miscellaneous Expense $75 Advertising Expense $75

Cash $75 Cash $75

3 Salaries and wages expense $1,900 Salaries and wages expense $1,200
Cash $1,900 Salaries and wages payable $700
Cash $1,900

4 Supplies $310 Equipment $310

Accounts Payable $310 Accounts Payable $310

5 Equipment $69 Miscellaneous Expense $96

Cash $69 Cash $96

6 Supplies $1,500 Supplies $1,500

Accounts Payable $1,500 Notes Payable $1,500
 EDOGAWA DETECTIVE AGENCY
Correct Trial Balance
April 30, 2017
Debit Credit
Cash $3,713
Accounts Receivable $3,560
Supplies $490
Equipment $10,841
Accumulated Depreciation—Equip. $1,350
Accounts Payable $600
Salaries and Wages Payable $0
Unearned Service Revenue $890
Notes Payable $1,500
Owner’s Capital $12,900
Service Revenue $5,450
Salaries and Wages Expense $2,600
Advertising Expense $675
Miscellaneous Expense $311
Depreciation Expense $500
$22,690 $22,690

Correcting Entries
Dr Cr
Account Receivable $360
Cash $360

Advertising Expense $75

Miscellaneous Expense $75

Salaries and wages payable $700

Salaries and wages expense $700

Equipment $310
Supplies $310

Miscellaneous Expense $96

Equipment $69
Cash $27

Accounts Payable $1,500

Notes Payable $1,500
a EDOGAWA DETECTIVE AGENCY
Worksheet for the Month Ended April 30, 2017
Trial Balance Adjustments Adjusted Trial Balance
Debit Credit Debit Credit Debit
Cash $3,713 $3,713
Accounts Receivable $3,560 $3,560
Supplies $490 $90 $400
Equipment $10,841 $10,841
Accumulated Depreciation—Equip. $1,350 $800
Accounts Payable $600
Salaries and Wages Payable $0
Unearned Service Revenue $890 $200
Notes Payable $1,500
Owner’s Capital $12,900
Service Revenue $5,450 $200
Salaries and Wages Expense $2,600 $2,600
Advertising Expense $675 $75 $600
Miscellaneous Expense $311 $311
Depreciation Expense $500 $800 $1,300
Totals $22,690 $22,690

Supplies Expense $90 $90

Prepaid Advertising $75 $75
Totals $23,490
Net Income
Totals

b EDOGAWA DETECTIVE AGENCY

Closing Entries
Service Revenue $5,650
Income Summary $5,650
Income Summary $4,901
Salaries and Wages Expense $2,600
Advertising Expense $600
Miscellaneous Expense $311
Depreciation Expense $1,300
Supplies Expense $90
Income Summary $749
Owners Capital $749

c EDOGAWA DETECTIVE AGENCY

Balance Sheet
 April 30, 2017
Assets
Current Asset
Cash $3,713
Accounts Receivable $3,560
Supplies $400
Prepaid Advertising $75
Total, Current Asset $7,748
Property, Plant, and Equipment
Equipment $10,841
less:Accoumulated Depreciation-Equip $2,150 $8,691
Total Assets $16,439

Liabilities and Owners Equity

Current Liabilities
Accounts Payable $600
Salaries and Wages Payable $0
Unearned Service Revenue $690
Total Current Liabilities $1,290
Long-term Liabilities
Notes Payable $1,500
Total Liabilities $2,790
Owners Equity
Owners Capital $13,649
Total Liabilities and owners equity $16,439
ENCY
pril 30, 2017
djusted Trial Balance Income statement Balance Sheet
Credit Debit Credit Debit Credit
$3,713
$3,560
$400
$10,841
$2,150 $2,150
$600 $600
$0 $0
$690 $690
$1,500 $1,500
$12,900 $12,900
$5,650 $5,650
$2,600
$600
$311
$1,300

$90
$75
$23,490 $4,901 $5,650 $18,589 $17,840
$749 $749
$5,650 $5,650 $18,589 $18,589