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?

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Contemporary Fashions Worksheet Month Ended December 31, 2013 TRIAL BALANC DEDIT CREDIT 163 200 00 36 000 00 28 8 0000 3200 00 336 00000 1Cash Accounts Receivable a Supplies (0) 14 400 00 (b) 960000 Prepaid Insurance s Machinery 6Accumulated Depreciation-Machinery 7 Accounts Payable a Jada McBride, Capital 9 Jada McBride, Drawing 10 Fees Income 11 Supplies Expense 12 Insurance Expense 13 Solaries Expense 14 Depreciation Expense Mochinery 15 Ublities Expense 6 Totols (c) 480000 540 0 0 00 298 3 20 00 30 00 0 00 24 00 0 00 (a) 14 40 000 (b) 9 6 00 00 4414 0 0100 (c) 4800 00 67 20 00 682 32 0 00 682 320 00 28 80000 8