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 Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Name Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash $ 81,890 Accounts receivable 18,000 Supplies 14,630 7,580 Prepaid insurance 23,000 5,106 Machinery 171,700 Accumulated depreciation-Machinery 2,860 Accounts payable 27,000 Angela Cruz, Capital 150,560 Angela Cruz, Drawing 12,480 Fees income 169.700 Supplies expense 7,580 Insurance expense 5,106 Salaries expense 22,200 Depreciation expense-Machinery 2,860 Utilities expense 3,360 Totals $ 347,260 $ 347,260 $ 15,546 $ 15,546 Net income 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 Req 2 Req 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 3 4 5 6 7 1 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 < Req 7 Analyze