1. Complete the Adjustments section of the work sheet using the following information:

a. On October 31, an inventory of the supplies showed that items costing $3,240 were on hand. Record adjustments for the supplies used in October.

b. On September 30, 2016, the company purchased a six-month insurance policy for $8,400. Record an adjustment for the expired insurance in October.

c. On October 1, the company signed a three-month advertising contract for $4,800 with a local TV station and paid the full amount in advance. Record an adjustment for the expired advertising in October.

d. On April 1, 2016, the company purchased equipment for $83,000. The equipment was estimated to have a useful life of five years and a salvage value of $12,500. Record an adjustment for depreciation on the equipment for October using the straight-line (SL) method.

e. Based on a physical count, ending merchandise inventory was determined to be $81,260.

2. Complete the remaining columns of the work sheet and determine the amount for net income (or net loss).

3. Prepare a classified income statement, statement of owners equity, and a classified balance sheet for October 31, 2016.

4. Journalize and post the adjusting and closing entries.

5. Prepare a post-closing trial balance as of October 31, 2016

5430040 Equigmert ccourts Payable Salares Payable 2325200 0 750 00 aPrch 100 Pnsc 9 0 7 5430040 Equigmert ccourts Payable Salares Payable 2325200 0 750 00 aPrch 100 Pnsc 9 0 7