I.1.

(a)

I.2. (c)

I.3. (a)

I.4. (c)

I.5. (a)
HallowedBeThyName
Work Sheet
For the Month Ended March 31, 2007
Trial Balance Adjustments Adjusted Trial Balance
Account Title Dr. Cr. Dr. Cr. Dr. Cr.

Cash 5,180 5,180

Supplies 3,850 (a) 2,910 940
Prepaid Rent 1,200 (b) 800 400
Equipment 87,600 87,600
Accumulated depreciation-Equipment 58,700 (c) 5,220 63,920
Accounts Payable 1,620 1,620
Seraphine Sheena, Capital 34,930 34,930
Seraphine Sheena, Drawing 10,600 10,600
Fees Earned 52,750 52,750
Salaries and Wages Expense 31,900 (d) 850 32,750
Utilities Expense 7,260 7,260
Miscellaneous Expense 410 410
148,000 148,000
Supplies Expense (a) 2,910 2,910
Rent Expense (b) 800 800
Depreciation Expense-Equipment (c) 5,220 5,220
Salaries and Wages Payable (d) 850 850
9,780 9,780 154,070 154,070
Net income

Closing entries: Fees Earned 52,750

Income Summary 52,750
Income Summary 49,350
Salaries and Wages Expense 32,750
Utilities Expense 7,260
Miscellaneous Expense 410
Supplies Expense 2,910
Rent Expense 800
Depreciation Expense-Equipment 5,220
Income Summary 3,400
Seraphine Sheena, Capital 3,400
Seraphine Sheena, Capital 10,600
Seraphine Sheena, Drawing 10,600

Reversing entries: Salaries and Wages Payable 850

Salaries and Wages Expense 850
Income Statement Balance Sheet
Dr. Cr. Dr. Cr.

5,180
940
400
87,600
63,920
1,620
34,930
10,600
52,750
32,750
7,260
410

2,910
800
5,220
850
49,350 52,750 104,720 101,320
3,400 3,400
52,750 52,750 104,720 104,720
ThyKingdomCome uses periodic method.

ThyKingdomCome
Income Statement
For the year Ended December 31, 2006

Revenue from sales:

Sales 430,209
Sales returns and allowances 6,140
Sales discounts 5,790 11,930
Net sales 418,279
Cost of merchandise sold:
Merchandise Inventory, beginning balance 59,700
Purchases 521,980
Purchase returns and allowances 9,100
Purchase discounts 2,525 11,625
Net purchases 510,355
Add transportation in 17,400
Cost of merchandise purchased 527,755
Merchandise available for sale 587,455
Merchandise inventory, ending balance 339,125
Cost of merchandise sold 248,330
Gross profit 169,949
Operating expenses:
Selling expenses 49,270
Administrative expenses 69,208
Total operating expenses 118,478
Income from operations 51,471
Other income 1,470
Net Income 52,941

ThyKingdomCome
Statement of Owner's Equity
For the year Ended December 31, 2006
Luca Pacioli, capital, beginning balance 278,492
Investment during the year -
Net income for year 52,941
52,941
Withdrawals 33,720
Increase in owner'r equity 19,221
Luca Pacioli, capital, ending balance 297,713

ThyKingdomCome
Balance Sheet
December 31,2006

Assets
Current assets:
Cash 139,152
Accounts Receivable 115,080
 Merchandise Inventory 339,125
Prepaid expenses 6,869
Total current assets 600,226
Property, plant, and equipment 517,942
Accumulated Depreciation-Property, plant, and equipment 380,804
Total property, plant, and equipment 137,138
Total assets 737,364

Liabilities
Current liabilities:
Accounts Payable 38,815
Unearned Rent 400,836
Total liabilities 439,651

Owner's Equity
Luca Pacioli, capital 297,713

Total liabilities and owner's equity 737,364

a
b

c
d

e
f
g

i
j

l
m

n
o
p

q
r

t
u

w
(a) Merchandise Inventory 15,750
Purchases 15,000
Transportation In 750

(b) Purchase Returns & Allowances 500

Merchandise Inventory 500

(c) Purchase Discounts 590

Merchandise Inventory 590

(d) Merchandise Inventory 3,500

Cost of Merchandise Sold 9,000
Sales 12,500