Question

The Trial Balance section of the worksheet for Contemporary Fashions for the period ended December 31, 2019, appears below. Adjustments data are also given.

ADJUSTMENTS

Supplies used, $3,600

Expired insurance, $2,400

Depreciation expense for machinery, $1,200

Required:

Complete the worksheet.

Prepare an income statement.

Prepare a statement of owner’s equity.

Prepare a balance sheet.

Journalize the adjusting entries in the general journal.

Journalize the closing entries in the general journal.

Prepare a postclosing trial balance.

Analyze:
If the adjusting entry for expired insurance had been recorded in error as a credit to Insurance Expense and a debit to Prepaid Insurance for $2,400, what reported net income would have resulted?

Complete this question by entering your answers in the tabs below.

Req 1

Req 2

Req 3

Req 4

Req 5 and 6

Req 7

Analyze

Complete the worksheet.

CONTEMPORARY FASHIONS Worksheet Month Ended December 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 $40,800 Accounts Receivable 9,000 Supplies 7,200 3,600 Prepaid Insurance 10,800 2,400 Machinery 84,000 Accumulated Depreciation—Machinery 1,200 Accounts Payable 13,500 Helen Kennedy, Capital 74,580 Helen Kennedy, Drawing 6,000 Fees Income 82,500 Supplies Expense 3,600 Insurance Expense 2,400 Salaries Expense 11,100 Depreciation Expense—Machinery 1,200 Utilities Expense 1,680 Totals $170,580 $170,580 $7,200 $7,200 $0 $0 $0 $0 $0 $0 Net income $0 $0 $0 $0

Answer 1