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

1. Supplies used, $7,520
2. Expired insurance, $5,062
3. Depreciation expense for machinery, $2,800

Required:

1. Complete the worksheet.
2. Prepare an income statement.
3. Prepare a statement of owners 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 $5,062, what reported net income would have resulted?

Complete the worksheet. FASHION WORLD Worksheet Month Ended December 31, 20X1 Prepare a statement of owner's equity. Prepare a balance sheet. Prepare a general journal. 1 Record the adjusting entry for supplies. 2 Record the adjusting entry for insurance. 3 Record the adjusting entry for depreciation. 4 Record the closing entry for revenue. 5 Record the closing entry for expenses. 6 Record the closing entry for the balance of income summary. 7 Record the closing entry for the drawing account. Note : = journal entry has been entered m . - 1 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 $5,062, what reported net income would have resulted