The adjusted trial balance columns of the worksheet for Watson Company, Ltd. Are as follows.

Instructions
(a) Complete the worksheet by extending the balances to the financial statement columns.
(b) Prepare an income statement, a retained earnings statement, and a classified statement of financial position (amounts in British pounds).
(c) Prepare the closing entries. Use J14 for the journal page.
(d) Post the closing entries. Use the three-column form of account. Income Summary is account No. 350.
(e) Prepare a post-closing trial balance.

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WATSON COMPANY, LTD. Worksheet For the Year Ended December 31, 2017 Adjusted Trial Balance Account Account Titles No. 101Cash 112 126 Cr. r. 17,800 14,400 2,300 Accounts Receivable Supplics 130 157 158 200 201 212 230 311 320 332 Prepaid Insurance 4,400 46,000 Accumulated Depreciation-Equipment Notes Payable Accounts Payable Salaries and Wages Payable Interest Payable Share Capital-Ordinary Retained Earnings Dividends Service Revenue Advertising Expense Supplies Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Interest Expense 18,000 20,000 8,000 2,600 1,000 15,000 9,800 12,000 86,200 610 631 10,000 3,700 6,000 4,000 39,000 1,000 722 726 905 Totals 160,600 160,600