The Closing Process The Trial Balance section of the worksheet for Contemporary Fashions for the period ended December 31, 2013, appears on the next page. Adjustments data are also given. ADJUSTMENTS a. Supplies used, $14,400 b. Expired insurance, $9,600 c. Depreciation expense for machinery, $4,800 INSTRUCTIONS 1. Complete the worksheet. 2. Prepare an income statement. 3. Prepare a statement of owner's equity. 11eb7c08_1639_eed0_9ab5_43093802066f_SM1558_00 4. Prepare a balance sheet. 5. Journalize the adjusting entries in the general journal, page 3. 6. Journalize the closing entries in the general journal, page 4. 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 $9,600, what reported net income would have resulted?

College Accounting 2nd Edition by David Haddock, John Price,Michael Farina

النسخة 2الرقم المعياري الدولي: 978-0073396958

College Accounting 2nd Edition by David Haddock, John Price,Michael Farina

النسخة 2الرقم المعياري الدولي: 978-0073396958

تمرين 3

The Closing Process
The Trial Balance section of the worksheet for Contemporary Fashions for the period ended December 31, 2013, appears on the next page. Adjustments data are also given.
ADJUSTMENTS
a. Supplies used, $14,400
b. Expired insurance, $9,600
c. Depreciation expense for machinery, $4,800
INSTRUCTIONS
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, page 3.
6. Journalize the closing entries in the general journal, page 4.
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 $9,600, what reported net income would have resulted?

التوضيح

موثّق

$14,440 worth of supplies used is an exp...