d) Adjust for supplies used Accounts 1. Accounts Payable 2. Accounts Receivable 3. License Expense 4. Insurance Expense 5. Insured Assets 6. Merchandise Inventory 7. Supplies 8. Prepaid Insurance 9. Prepaid Licenses 10. Supplies Expense 11. Telephone Expense 3. Kathy Morris owns a small decorating company called Premium Decorating. A partially completed worksheet for Premium Decorating is given on the next page. Below is the additional information you will need to complete the eight-column worksheet. Additional Information i. Purchase invoices received in January 2011 which pertain to goods or services received in 2010 are for the following: a. Telephone b. Car Expense c. Supplies $102.00 $389.00 $250.00 The supplies counted and valued as of December 31, 2010 amounted to $1040.00 ii. iii. The prepaid insurance at December 31, 2010 amounted to $1040. Premium Decorating Accounts Worksheet Trial Balance Adjustments Income Statement DR CR DR CR DR CR Bank 4 0 4 7 50 Accounts Receivable Supplies 7 4 2 1 30 00 - Prepaid Insurance Furniture & Equipment 1 8 8 0 - 5 5 0 0 10 8 0 - 0 - Automobile Accounts Payable Bank Loan 32 50 10 0 0 0 - - Katthy Morris, Capital 18 9 49 50 Kathy Morris, Drawings Revenue 19 500- 40 072- Bank Charges Expense Car Expense Interest Expense Miscellaneous Expense Rent Expense Telephone Expense Wages 8 304- 72 2 7 1 50 72 27 150 3 6 0 3 5 47 - - 900 20 - - 6000 8 1 2 - Year ended December 31, Balance Sheet DR CR