Use the worksheet file as provided for Darby Kite Store as of December 31, 20X1.

Perform the Adjustments at the end of the year:

A and b): Merchandise Inventory as of December 31, 20X1 = $ 23,600.00

C) Unused supplies on hand $ 1,050.00

D) Insurance expired $ 250.00

E) Depreciation expense for the year: $ 400.00

F) Wages earned but not paid $ 360.00

G) Unearned revenues on December 31: $ 500.00

REQUIRED: (NOTE that this is slightly changed from the text book; added "prepare the Income Statement" on sheet 1 in the file)

1) the worksheet as provided in the separate file.

2) the adjusting entries in the separate file.

3) the Income Statement after making the adjustments. (SEE SHEET 1 on the file as provided)

4) the closing entries (these are NOT posted to the worksheet).

5) post- closing trial balance and Post-closing Balance Sheet.

6) the reversing entries as required.