Solutions- Worksheet:- Financial Statements 8. Use the corrected worksheet to prepare an income statement, a statement of changes in owner's equity, and a statement of financial position in the fourth tab "Financial statements" in the Excel file. The general ledger of ABC Company shows the following balances at December 31 , 2019 before adjustments: Smith has asked you to develop a worksheet that will serve as a trial balance. Use the data above as input your model. Information for the adjusting entries is as follows: a. Depreciation on equipment is $800 for the accounting period. b. ABC purchased $5000 of office supplies during the period. At the end of the period $3,000 of supplies were on hand. c. Prepaid insurance had a $1,950 normal balance prior to adjustment. By year end $600 was unexpired. d. Services provided but unrecorded totaled $1,500. e. Accrued salaries but not paid at year-end are $2,000. f. A 6-month, $30,000 note was signed in November 1, 2019. The annual interest rate is 6%. Principal and interest are payable at the end of the 6 th month. Interest was accrued for 2019. g. On 7/1/2019, ABC received $3,000 as a down payment from a client for the service in the coming 12 months. Required 1. As the accountant for ABC Company, you have been asked to prepare financial statements for the year. A file called WORKSHEET has been provided to assist you in this assignment. 2. The general ledger before adjustment and adjusting entries for the year ended 2019 are given above. Develop a worksheet that will serve as a trial balance in first tab "ABC Company Worksheet" in the Excel file). Required 1. As the accountant for ABC Company, you have been asked to prepare financial statements for the year. A file called WORKSHEET has been provided to assist you in this assignment. 2. The general ledger before adjustment and adjusting entries for the year ended 2019 are given above. Develop a worksheet that will serve as a trial balance in first tab "ABC Company Worksheet" in the Excel file). What-if Analysis 7. 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. Financial Statements 8. Use the corrected worksheet to prepare an income statement, a statement of changes in owner's equity, and a statement of financial position in the fourth tab "Financial statements" in the Excel file.|