(a) THOMAS MAGNUM, P.I., INC.

Worksheet

For the Quarter Ended March 31, 2011

Account Titles

Trial Balance

Adjustments

Adjusted

Trial Balance

Income

Statement

Statement of

Financial Position Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash

Accounts Receivable

Supplies

Prepaid Insurance

Equipment

Notes Payable

Accounts Payable

Share CapitalOrdinary

Dividends

Service Revenue

Salaries Expense

Travel Expense

Rent Expense

Miscellaneous Expense

Totals

Supplies Expense

Depreciation Expense

Accumulated Depreciation

Interest Expense

Interest Payable

Insurance Expense

Totals

Net Income

Totals

11,400

5,620

1,050

2,400

30,000

600

2,200

1,300

1,200

200

55,970

10,000

12,350

20,000

13,620

55,970

(e) 530

(a) 670

(b) 1,000

(c) 300

(d) 600

3,100

(a) 670

(d) 600

(e) 530

(b) 1,000

(c) 300

3,100

11,400

6,150

380

1,800

30,000

600

2,200

1,300

1,200

200

670

1,000

300

600

57,800

10,000

12,350

20,000

14,150

1,000

300

57,800

2,200

1,300

1,200

200

670

1,000

300

600

7,470

6,680

14,150

14,150

14,150

14,150

11,400

6,150

380

1,800

30,000

600

50,330

50,330

10,000

12,350

20,000

1,000

300

43,650

6,680

50,330

Key: (a) Supplies Used; (b) Depreciation Expensed; (c) Accrued Interest on note; (d) Insurance Expired; (e) Service Revenue

Earned but unbilled.

(b) THOMAS MAGNUM, P.I., INC. Income Statement For the Quarter Ended March 31, 2011 Revenues Service revenue .............................................. 14,150 Expenses Salaries expense ............................................ 2,200 Travel expense ............................................... 1,300 Rent expense .................................................. 1,200 Depreciation expense .................................... 1,000 Supplies expense ........................................... 670 Insurance expense ......................................... 600 Interest expense ............................................. 300 Miscellaneous expense .................................. 200 Total expenses ........................................ 7,470 Net income ............................................................. 6,680

THOMAS MAGNUM, P.I., INC. Retained Earnings Statement For the Quarter Ended March 31, 2011 Retained earnings, January 1 .......................................... 0 Add: Net income ............................................................. 6,680 6,680 Less: Dividends ............................................................... 600 Retained earnings, March 31............................................ 6,080

THOMAS MAGNUM, P.I., INC. Statement of Financial Position March 31, 2011 Assets Property, plant, and equipment Equipment ..................................................... 30,000 Less: Accumulated depreciation ................ 1,000 29,000 Current assets Prepaid insurance ......................................... 1,800 Supplies ......................................................... 380 Accounts receivable ..................................... 6,150 Cash ............................................................... 11,400 19,730 Total assets ........................................................... 48,730 Equity and Liabilities Equity Share capitalordinary ................................ 20,000 Retained earnings ......................................... 6,080 26,080 Current liabilities Notes payable ................................................ 10,000 Accounts payable .......................................... 12,350 Interest payable ............................................. 300 22,650 Total equity and liabilities .................................... 48,730

(c) Mar. 31 Supplies Expense ................................ 670 Supplies ........................................ 670 31 Depreciation Expense ......................... 1,000 Accumulated Depreciation .......... 1,000 31 Interest Expense .................................. 300 Interest Payable ............................ 300 31 Insurance Expense .............................. 600 Prepaid Insurance ........................ 600 Mar. 31 Accounts Receivable ................................ 530 Service Revenue ............................... 530

(d) Mar. 31 Service Revenue ...................................... 14,150 Income Summary ............................. 14,150 31 Income Summary ..................................... 7,470 Travel Expense ................................. 1,300 Salaries Expense .............................. 2,200 Rent Expense ................................... 1,200 Insurance Expense .......................... 600 Depreciation Expense ...................... 1,000 Supplies Expense ............................ 670 Interest Expense .............................. 300 Miscellaneous Expense ................... 200 31 Income Summary ..................................... 6,680 Retained Earnings ............................ 6,680 31 Retained Earnings ................................... 600 Dividends .......................................... 600

e. THOMAS MAGNUM, P.I., INC. Post-Closing Trial Balance March 31, 2011

Cash 11,400

Accounts Receivable 6,150

Supplies 380

Prepaid Insurance 1,800

Equipment 30,000

Accumulated Depreciation 1,000

Notes Payable 10,000

Interest Payable 300

Accounts Payable 12,350

Share CapitalOrdinary 20,000

Retained Earnings 6,080

49,730 49,730