The Trial Balance section of the worksheet for 21st Century Fashions for the period ended December 31, 2016, appears on the next page. Adjustments data are also given.ADJUSTMENTSa. Supplies used, $7,200b. Expired insurance, $4,800c. Depreciation expense for machinery, $2,400INSTRUCTIONS1. Complete the worksheet.2. Prepare an income statement.3. Prepare a statement of owner’s equity.4. Prepare a balance sheet.5. Journalize the adjusting entries in the general journal, page 3.6. Journalize the closing entries in the general journal, page 4.7. 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 $4,800, what reported net income would haveresulted?
The Trial Balance section of the worksheet for 21st Century