D 1 WNE, Inc. 2 WORKSHEET 3 12/31/20 TRIAL BALANCE 1500.00 INCOME STATEMENT ADJUSTMENTS 2300.00 3600.00 25000.00 -5000.00 BALANCE SHEET 1500.00 0.00 2300.00 3600.00 25000.00 -5000.00 0.00 -6000.00 0.00 -2400.00 0.00 4000.00 -10000.00 6000.00 -2400.00 5 ACCOUNT 6 Cash 7 Accounts Receivable 8 Supplies 9 Prepaid Insurance 10 Equipment 11 Accumulated Depreciation 12 Wages Payable 13 Notes Payable 14 Interest Payable 15 Unearned Revenue 16 Income Tax Payable 17 Common Stock 18 Retained Earnings 19 Revenues 20 Advertising Expense 21 Insurance Expense 22 Interest Expense 23 Depreciation Expense 24 Income Tax Expense 25 Supply Expense 26 Repair Expense 27 Travel Expense 28 Auto Expense 29 Payroll Tax Expense 30 Wage Expense 31 32 33 4000.00 -10000.00 -50000.00 1400.00 -50000.00 1400.00 0.00 0.00 0.00 0.00 0.00 3500.00 1100.00 3100.00 3750.00 32150.00 3500.00 1100.00 3100.00 3750.00 32150.00 0.00 0.00 -5000.00 5000.00 34 35 You have been asked by your client WNE, Inc. to prepare both a classified balance sheet and a classified income statement. Your client has presented you with the attached trial balance for the period ended December 31, 2020 and given you the following additional information to prepare adjusting entries in order to prepare those financial statements. You should use the attached excel worksheet to help complete this engagement. Additional Information: a. The supplies count on December 31, 2020 indicates that there are $1400 remaining supplies on hand for use in 2021. b. Prepaid Insurance represents a payment made on December 1, 2020 for a 12 month policy beginning on that date. C. Depreciation expense for 2020 is $ 500. d. December 31, 2020 falls on a Thursday. The company's pay period is from Monday through Friday and the daily payroll is $ 400 to be paid on Monday January 4, 2021. e. Income tax expense is $ 850. f. Unearned revenues at December 31, 2020 are $ 300. 8 On September 1, 2020, WNE, Inc. signed a $ 6000. note at a 5% annual interest rate. The note and its interest are due in one year. h. Work completed (revenue earned) not yet billed. $ 800. Once you have completed the worksheet, prepare a classified balance sheet and classified income statement