CHAPTER 4 Completing the Accounting Cycle and Classifying Accounts 50 The company's employees have earned $1,100 of accrued wages. 2020, the end " Interest of $110 for June has not yet been paid or recorded. In addition, the company is required to make a $2,000 payment on the note on August 30, 2020. 2. Use the work sheet to journalize the adjusting and closing entries. Prepare an income statement, a statement of changes in equity, and a classified balance sheet. Analysis Component: Analyze the following independent errors and describe how each would affect the Acolumn work sheet. Explain whether the error is likely to be discovered in completing the work sheet and, if not , the effect of the error on the financial statements. The adjustment for consumption of the insurance coverage credited the Prepaid Insurance account for $1,550 and debited the same amount to the Insurance Expense account. When completing the adjusted trial balance in the work sheet, the $4,200 Repairs Expense account balance was extended to the Debit column for the balance sheet. Problem 4-4B Closing entries LO2, 3, 4 CHECK FIGURE: 2. Post-closing trial balance = $86,800 The adjusted trial balance for Dillan's Tailoring Services on December 31, 2020, appears as follows. No. Account Debit Credit 101 Cash ...........; 125 $ 15,500 Store supplies.. 6,500 128 Prepaid insurance... 3,800 167 Equipment.. 61,000 168 Accumulated depreciation, equipment.. $ 19,700 201 Accounts payable. 39,400 210 Wages payable. 6,400 301 Vy Dillan, capital... 23,300 302 Vy Dillan, withdrawals. 32,000 401 Sewing revenue .... 109,920 612 Depreciation expense, equipment.... 5,400 623 Wages expense.... 61,200 637 Insurance expense ... 2,200 640 Rent expense .... 4,80 651 Store supplies expense. 2,600 690 Utilities expense.. 3,720 Totals .... $198,720 $198,720 Required these 1. Prepare closing entries. 2. Prepare a post-closing trial balance. Problem 4-5B Financial statements LOG CHECK FIGURES: Profit = $30,000; Total assets = $67,100 Using the information from Problem 4-4B, prepare an income statement and a statement of changes in equity er it for the year ended December 31, 2020, and a classified balance sheet at December 31, 2020. The owner made no investments during the year. 301