Critical Thinking Problem 6.1 (Algo) The Closing Process. LO 6-1, 6-2, 6-3 The Trial Balance section of the worksheet for Fashion World for the period ended December 31, 20X1, appears below. Adjustments data are also given. ADJUSTMENTS a. Supplies used, $7,550 b. Expired insurance, $5,084 c. Depreciation expense for machinery, $2,830 Required: 1. 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. 6. Journalize the closing entries in the general journal. 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 $5.084, what reported net income would have resulted? Check my work Analyze: If the adjusting entry for expired insurance had been recorded in error as a credit to Insurance Expense and a debit to Plepaid Insurance for $5,084, what reported net income would have resulted? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Reg 4 Req 5 and 6 Req7 Analyze Complete the worksheet. FASHION WORLD Worksheet Month Ended December 31, 20X1 Trial Balance Adjustments Account Name Debit Credit Debit Credit Adjusted Trial Balance Debit Credit Income Statement Debit Credit Debit Cash $ 81.065) Accounts receivable 18.000 Supplies 14.505 Prepaid insurance 22,900 Machinery 171,450 Accumulated depreciation-Machinery Accounts payable Angela Cruz, Capital Angela Cruz, Drawing Fees income 7.550 5.084 2.830 27,000 150,460 12.440 160,350 Supplies expense Insurance expense 7,550 5,004 Salanes expense 22.200 Prev 1 of 1 Next > 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 $5,084, what reported net income would have resulted? Complete this question by entering your answers in the tabs below. Req 11 Req 2 Req 3 Req 4 Req 5 and 6 Req 7 Analyze Prepare an income statement. FASHION WORLD Income Statement Revenue Expenses Total expenses Month Ended December 31, 20X1 < Req 1 Req 3 > < Prev 1 of 1 Next 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 $5,084, what reported net income would have resulted? Complete this question by entering your answers in the tabs below. Req 1 Req 21 Req 3 Req 4 Req 5 and 6 Req 7 Analyze Prepare a statement of owner's equity. FASHION WORLD Statement of Owner's Equity Month Ended December 31, 20X1 < Req 2 Req 4 > 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 Prepare a balance sheet. FASHION WORLD Balance Sheet Assets December 31, 20X1 Total Assets Liabilities and Owner's Equity Liabilities Owner's Equity Total Liabilities and Owner's Equity es: Req 1 Req 2 Req 3 Req 4 Req 5 and 6 Req 7 Analyze Prepare a general journal. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 Record the adjusting entry for supplies. Note: Enter debits before credits. Date: Dec 31, 20X1 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet > < 1 2 3 4 5 6 7 Record the adjusting entry for insurance. Note: Enter debits before credits. Date Dec 31, 20X1 General Journal Debit Credit Record entry Clear entry View general journal Prepare a general journal. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 Record the adjusting entry for depreciation.. Note: Enter debits before credits. Date Dec 31, 20X1 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the closing entry for revenue. Note: Enter debits before credits. Date Dec 31, 20X1 5 6 7 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 59 Record the closing entry for expenses. Note: Enter debits before credits. Date Dec 31, 20X1 6 > General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet > 1 2 3 4 5 Record the closing entry for the balance of income summary. Note: Enter debits before credits. Date Dec 31, 20X1 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 7 Record the closing entry for the drawing account. Note: Enter debits before credits. Date Dec 31, 20X1 General Journal Debit Credit Record entry Clear entry View general journal Req 1 Req 2 Req 3 Req 4 Req 5 and 6 Req 7 Analyze Prepare a postclosing trial balance. FASHION WORLD Postclosing Trial Balance. December 31, 20X1 Book Account Name Debit Credit Ask Print rences Totals < Req 5 and 6 Analyze > es Required: 1. 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. 6. Journalize the closing entries in the general journal. 7. Prepare a postclosing trial balance. Analyze: If the adjusting entry for expired insurance had been recorded in error as a credit to Insurance Expe Insurance for $5,084, 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 If the adjusting entry for expired insurance had been recorded in error as a credit to Insurance Expen= Prepaid Insurance for $5,084, what reported net income would have resulted? Net income < Req 7 Analyze