Q1:

Suppose you discover that an assistant in your department had misunderstood your instructions and had provided you with wrong information on two of the adjusting entries. Supplies consumed during the year should have been $3,000, and the insurance premiums expired at year end were $600. Make the corrections and provide your answer in the third tab What-if analysis in the Excel file.

Q2:

Use the corrected worksheet to prepare an income statement, a statement of changes in owners equity, and a statement of financial position in the fourth tab Financial statements in the Excel file.

Income Statement Dr. Cr. Account Title Cash Supplies Accounts receivable Prepaid insurance Equipment Accumulated depreciation--equipment Accounts payable Unearned revenue James Smith, capital James Smith, drawing Revenue Consulting fees Rent expense Salaries and wages expense Utilities expense Miscellaneous expense Balance Sheet Dr. Cr. 9,515 3,000 8,250 600 109,000 39,300 2,900 3,500 178,870 99,050 Work Sheet For Year Ended December 31, 2019 Trial Balance Adjustments Adj. T/Balance Dr. Cr. Dr. Cr. Dr. Cr. 9,515 9,515 7,785 4,785 3,000 6,750 1,500 8,250 1,950 1,350 600 109,000 100,000 38,500 800 39,300 2,900 2,900 5,000 1,500 3,500 178,870 178,870 99,050 99,050 92,000 3,000 95,000 35,400 35,400 10,250 10,250 37,200 2,000 35,200 250 250 120 317,270 317,270 800 800 4,785 4,785 1,350 1,350 600 600 600 600 2,000 2,000 12,535 12,535 322,170 322,170 95,000 35,400 10,250 35,200 250 120 120 Depreciation expense Supplies expense Insurance expense Interest expense Interest payable Salaries and wages payable Totals 800 4,785 1,350 600 600 2,000 229,415 227,170 92,755 95,000 Net income Totals 2,245 95.000 0 0 2,245 95,000 229,415 229,415