The Trial Balance section of the worksheet for Fashion World for the period ended December 31, 20X1, appears below. Adjustments data are also given. ADJUSTMENTS a. Supplies used, $7,580 b. Expired insurance, $5,106 c. Depreciation expense for machinery, $2,860 Required: 1. Complete the worksheet. 2. Prepare an income statement. 3. Prepare a statement of owner's equity. 4. Prepare a balance sheet. 5. Journalize the adjusting entries in the general journal. 6. Journalize the closing entries in the general journal. 7. Prepare a postclosing trial balance. Analyze: If the adjusting entry for expired insurance had been recorded in error as a credit to Insurance Expense and a debit to Prepaid Insurance for $5,106, what reported net income would have resulted? FASHION WORLD Worksheet Month Ended December 31, 20X1 Adjustments Adjusted Trial Balance Debit Credit Debit Credit Account Name Income Statement Debit Credit Balance Sheet Debit Credit $ Trial Balance Debit Credit 81,890 18,000 14,630 23,000 7,580 5,106 171,700 2,860 27,000 150,560 Cash Accounts receivable Supplies Prepaid insurance Machinery Accumulated depreciation-Machinery Accounts payable Angela Cruz, Capital Angela Cruz, Drawing Fees income Supplies expense Insurance expense Salaries expense Depreciation expenseMachinery Utilities expense Totals Net income 12,480 169,700 7,580 5,106 22,200 2.860 3,360 347,260 $ $ 347,260 $ 15,546 $ 15,546 FASHION WORLD Income Statement Month Ended December 31, 20X1 Revenue Expenses Total expenses Prepare a statement of owner's equity. FASHION WORLD Statement of Owner's Equity Month Ended December 31, 20X1 Reg 2 Reg 4 > Prepare a balance sheet. FASHION WORLD Balance Sheet December 31, 20X1 Assets Total Assets Liabilities and Owner's Equity Liabilities Owner's Equity Total Liabilities and Owner's Equity Prepare a general journal. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Record the adjusting entry for supplies. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 20X1 Record entry Clear entry View general journal Prepare a postclosing trial balance. FASHION WORLD Postclosing Trial Balance December 31, 20X1 Account Name Debit Credit Totals If the adjusting entry for expired insurance had been recorded in error as a credit to Insurance Expense and a debit to Prepaid Insurance for $5,106, what reported net income would have resulted? Net income