The adjusted trial balance columns of the worksheet for Watson Company are as follows.

Watson Company Worksheet For the Year Ended December 31, 2014 Adjusted Recount Trial Balance MSC ease ee account Titles ye ies De Cr.
101 Cash 17,800 iL Accounts Receivable 14,400 126 Supplies 2,300 130 Prepaid Insurance 4,400 Sil Equipment 46,000 La2, Accumulated Depreciation—Equipment 18,000 200 Notes Payable 20,000 201 Accounts Payable 8,000 212 Salaries and Wages Payable 2,600 230 Interest Payable 1,000 Sil il Common Stock 15,000 320 Retained Earnings 9,800 B32 Dividends 12,000 400 Service Revenue 86,200 610 Advertising Expense 10,000 631 Supplies Expense 3,700 ele Depreciation Expense 6,000 722 Insurance Expense 4,000 726 Salaries and Wages Expense 39,000 905 Interest Expense 1,000 Totals 160,600 160,600 Instructions

(a) Complete the worksheet by extending the balances to the financial statement columns.

(a) Net income $22,500

(b) Prepare an income statement, a retained earnings statement, and a classified balance _

(b) Current assets $38,900 sheet. (Note: $5,000 of the notes payable become due in 2015.) Current liabilities $16,600

(c) Prepare the closing entries. Use J14 for the journal page.

(d) Post the closing entries. Use the three-column form of account. Income Summary is __

(e) Post-closing trial balance account No. 350. $84,900

(e) Prepare a post-closing trial balance.