The Trial Balance section of the worksheet for 21st Century Fashions for the period ended December 31, 2016, appears on the next page. Adjustments data are also given.

ADJUSTMENTS
a. Supplies used, $7,200
b. Expired insurance, $4,800
c. Depreciation expense for machinery, $2,400

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 $4,800, what reported net income would haveresulted?

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21st Century Fashlons Worksheet Month Ended December 31., 2016 TRIAL BALANCE ADJUSTMENTS ACCOUNT NAME DEBIT 81 6 00 00 18 00 o 00 14 400 00 21 600 00 CREDIT DEBIT CREDIT Cash Accounts Receivoble Supplies Prepaid Insurance Machinery Accumulated Depreciation-Mochinery Accounts Payable Carolyn Davis, Copital Carolyn Davis, Drawing Fees Income Supplies Expense Insurance Expense Salaries Expense Depreciation Expense -Machinery Utilities Expense Totals a) 7 2 00 00 b) 4800 00 168 0 0 0 00 ) 2 400 00 27 000 00 149 1 6 0 00 12 00 0 00 165 00 0 00 2 00 00 (b) 480 o 0o 2 4 00 00 22 20 0 00 3 36000 341 160 00 341 16 000 14 40 0 00 14 4 01o o