Question
You have been asked by your client WNE, Inc. to prepare both a classified balance sheet and a classified income statement. Your client has presented
You have been asked by your client WNE, Inc. to prepare both a classified balance sheet and a classified income statement. Your client has presented you with the attached trial balance for the period ended December 31, 2021 and given you the following additional information to prepare adjusting entries in order to prepare those financial statements. You should use the attached excel worksheet to help complete this engagement. Additional Information: The supplies count on December 31, 2021 indicates that there are $1400 remaining supplies on hand for use in 2022. Prepaid Insurance represents a payment made on December 1, 2021 for a 12 month policy beginning on that date. Depreciation expense for 2021 is $ 500. December 31, 2021 falls on a Wednesday. The companys pay period is from Monday through Friday and the daily payroll is $ 400 to be paid on Monday January 5, 2022. Income tax expense is $ 850. Unearned revenues at December 31, 2021 are $ 300. On September 1, 2021, WNE, Inc. signed a $ 6000. note at a 5% annual interest rate. The note and its interest are due in one year. Once you have completed the worksheet, prepare a classified balance sheet and classified income statement.
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