The following is a period end trial balance for Davis Pub. at the end of December 2021 Cash Credit Card Receivable Bank Loan Davis, Capital Davis, Drawings $120,000 2,300 Inventory 36,200 Prepaid Insurance 8,100 Equipment 250,000 Accumulated Depreciation Accounts Payable Unearned Revenue $55,000 2,700 2,100 78,500 244,450 87,000 Sales Revenue 350,000 Cost of Sales 110,000 Maintenance Expense 1,800 Rent Expense 21,000 Salaries Expense 94,200 Telephone Expense 2,150 $732,750 $732,750 Period end information: Insurance was paid for 1 year on October 1st Equipment expected life is 10 yr with no residual value An inventory count showed inventory to be valued at $33 Interest owed on bank loan is estimated to be $450 Unearned revenue comes from two events. The first one deposited $1,000 and was held Dec. 23rd The second one deposited $1,100 and will be held in Jan At the end of the year, $2,000 in wages was owed Required: 1. Complete the adjustment worksheet 2. Prepare the Financial Statements Account Titles Cash Credit Card Receivable Inventory Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Interest Payable Accrued Wages Unearned Revenue Bank Loan Davis, Capital Davis, Drawings Sales Revenue Cost of Sales Depreciation Expense Insurance Expense Interest Expense Maintenance Expense Rent Expense Salaries Expense Telephone Expense Total Unadjusted Trial Adjustments Balance DR CR DR Adjusted Trial Balance CR DR Income Statement Balance Sheet CR DR CR DR CR REVENUE OPERATING EXPENSES NET INCOME ASSETS TOTAL ASSETS LIABILITIES TOTAL LIABILITIES EQUITY TOTAL EQUITY TOTAL LIAB & EQUITY QUESTION 1 The following is a period end trial balance for Davis Pub. at the end of December 2021 Cash Credit Card Receivable $120,000 2,300 Inventory 36,200 Prepaid Insurance 8,100 Equipment 250,000 Accumulated Depreciation $55,000 Accounts Payable Unearned Revenue 2,700 2,100 78,500 244,450 87,000 Sales Revenue 350,000 Cost of Sales 110,000 Maintenance Expense 1,800 Rent Expense 21,000 Salaries Expense 94,200 Telephone Expense 2,150 $732,750 $732,750 Bank Loan Davis, Capital Davis, Drawings Period end information: Insurance was paid for 1 year on October 1st Equipment expected life is 10 yr with no residual value An inventory count showed inventory to be valued at $33,100 Interest owed on bank loan is estimated to be $450 Unearned revenue comes from two events. The first one deposited $1,000 and was held Dec. 23rd The second one deposited $1,100 and will be held in Jan. At the end of the year, $2,000 in wages was owed Required: 1. Complete the adjustment worksheet 2. Prepare the Financial Statements Account Titles Cash Credit Card Receivable Inventory Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Interest Payable Accrued Wages Unearned Revenue Bank Loan Davis, Capital Davis, Drawings Sales Revenue Cost of Sales Depreciation Expense Insurance Expense Interest Expense Maintenance Expense Rent Expense Salaries Expense Telephone Expense Total Unadjusted Trial Balance DR Adjustments CR DR Adjusted Trial Balance Income Statement CR DR Balance Sheet CR DR CR DR CR REVENUE OPERATING EXPENSES NET INCOME ASSETS LIABILITIES TOTAL LIABILITIES EQUITY TOTAL EQUITY TOTAL ASSETS ITOTAL LIAB & EQUITY