Question

The trial balance of Neal Company as of January 31, 2019, after the company completed the first month of operations, is shown in the partial worksheet below. Required: Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $4,400; expired insurance, $5,600; depreciation expense for the period, $1,700. Analyze: How does the insurance adjustment affect Prepaid Insurance? Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $4,400; expired insurance, $5,600; depreciation expense for the period, $1,700. NEAL COMPANY Worksheet (Partial) Month Ended January 31, 2019 Account Name Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash $104,100 Accounts Receivable 20,900 Supplies 38,500 Prepaid Insurance 60,600 Equipment 108,100 Accumulated Depreciation—Equipment Accounts Payable 24,900 Alexander Neal, Capital 252,100 Alexander Neal, Drawing 14,500 Fees Income 104,300 Supplies Expense Insurance Expense Salaries Expense 31,300 Depreciation Expense—Equipment Utilities Expense 3,300 Sub—Totals $381,300 $381,300 Totals How does the insurance adjustment affect Prepaid Insurance? Insurance adjustment

Answer 1