Ms Janet Jackson is the proprietor of Janet’s Sewing Services. Janet prepares her accounts on a monthly basis. The Unadjusted Trial Balance at 31 March 2018 is shown below:

Janet’s Sewing Services

Unadjusted Trial Balance

31 March 2018

Accounts Debit Credit
  $ $
Cash at bank 8,500  
Accounts receivable 5,200  
Supplies 1,500  
Prepaid rent 1,200  
Equipment 8,000  
Accumulated depreciation – equipment   333
Accounts payable   1,520
Bank loan (due 2020)   8,000
Capital, Janet Jackson (1/3/18)   9,797
Drawings, Janet Jackson 3,000  
Service revenue   11,200
Utilities expense 300  
Wages expense 3,150  
     
Totals 30,850 30,850

 

 

Additional information for adjusting entries:

  1. A physical stock-take has determined supplies on hand at 31 March are $1,100.
  2. Rent on the business premises was paid in advance for 3 months at the beginning of March.
  3. A typical weekly payroll is $750. The employee is paid for a 5-day week (Mon-Fri), and is paid each Thursday (inclusive).  31 March was a Saturday.
  4. Interest on the interest-only loan for the month of March won’t be paid until the first week of April. The interest rate is 8% per annum.
  5. Janet withdrew $900 from the business on the last day of the month for her own use and did not record it.
  6. The equipment has a 5-year useful life with no salvage value. It is being depreciated on a straight-line basis.

             

Required:

  1. Prepare the necessary general journal adjusting entries for the month ended 31 March 2018 (include narrations).
  2. Prepare the Income Statement for Janet’s Sewing Services for the Month Ended 31 March 2018.
  3. Prepare the Statement of Changes In Equity for Janet’s Sewing Services for the Month Ended 31 March 2018.
  4. Prepare the classified Balance Sheet for Janet’s Sewing Services As At 31 March 2018.

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