The trial balance of Escobedo Company as of January 31, 20X1, after the company completed the first month of operations, is shown in the partial worksheet below.

INSTRUCTIONS

Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $2,100; expired insurance, $2,750; depreciation expense on equipment for the period, $800.

Analyze: 

How does the insurance adjustment affect Prepaid Insurance?

Transcribed Image Text:

Cash 1 2 Accounts Receivable 3 Supplies 4 Prepaid Insurance 5 Equipment 6 Accumulated Depreciation-Equipment 7 ACCOUNT NAME Accounts Payable Rosa Escobedo, Capital Rosa Escobedo, Drawing 9 10 Fees Income 11 Supplies Expense Insurance Expense 8 12 13 Salaries Expense 14 Depreciation Expense-Equipment 15 16 Utilities Expense Totals Escobedo Company Worksheet (Partial) Month Ended January 31, 20X1 TRIAL BALANCE DEBIT 52 5 0 0 00 10 9 0 0 00 19 7 0 0 00 33 000 00 54 5 0 0 00 7 700 00 16 1 0 0 00 2 100 00 196 5 0 0 00 CREDIT 12 900 00 126 5 0 0 00 57 1 0 0 00 196 5 0 0 00 DEBIT ADJUSTMENTS CREDIT