a The account balances are not identified as debit or credit to provide additional practice in determining usual balances. Information for adjustments: of the $400 of office supplies that were purchased, $150 remains on hand at the end of the year. b. Depreciation expense on the furniture for the year amounts to $1,000. Interest expense incurred on the notes payable, but not yet paid, amounts to $75. d. of the $1,000 of service supplies that were purchased, $800 has been used in operating the business. REQUIRED a. Prepare a work sheet for the firm for the year ended December 31, 1978. b. From the work sheet, prepare an income statement, a statement of owner's capital, and a balance sheet. c. Work sheet and financial statements. The trial balance, before adjustments, of castile Moss company at December 31, 1978, is shown below. Also shown is information for adjustments. The firm prepares financial statements once each year at the end of December. Castile Moss Company TRIAL BALANCE December 31, 1978 Cash Accounts receivable office supplies Service supplies Office furniture Accumulated depreciation-office furniture Accounts payable Notes payable c. Moss Capital C. Moss Withdrawals Service revenue Rent revenue Salaries expense Rent expense Utilities expense other expenses The account balances are not identified as debit additional practice in determining usual balances. 30,000 2,100 400 1,000 8,000 2,000 3,000 10,000 5,800 7,000 40,000 2,500 12,000 1,500 1,000 300 credit to provide