From the following trial balance and adsitional data,complete

1.a worksheet,

2. The three financial statement

3.the adjusting journal entries(numbers are intenstinally small sonyou can concentrate on the theory).

Adjustment Data

a.Insurance expired,$3

b.Plumbing supplies on hand,$1

c.Depreciation expense,Plumbing equipment,$1

d.Salaries owed but not paid to employees,$2

Solution tios for building a worksheet (1)

Adjustments

Expired means used up. 3031=3L The original cost of equipment of $7 is not "touched." \begin{tabular}{l|l|l|l|l} \hline \hline Salaries Expense & Expense & & Dr. & $2 \\ Accrued Salaries & Liability & & Cr. & $2 \\ \hline \end{tabular} - The last four columns of worksheet are prepared from the adjusted trial balance. - Capital of $12 is the old figure. Net income of $10 (revenue - expenses) is brought over to same side as capital on the balance sheet Cr. column to balance columns. Fiast Cempany Iricules Siatericit For die Moptitt Ended Dueciribut 31,2023: Frost Company Income Statement For the Month Ended December 31, 2023 Revenue: Plambing Fees Operating Bxpensen: General Journal Solution Tips for Preparing Financial Statements from a Worksheet (2) Inside columns of the three financial statements are used for subtotalling. No debits or credits appear on the formal statements. Statement Income Statement From income statement columns of worksheet for revenue and expenses. Statement of Owner's Equity Beginning figure for Capital from the balance sheet Cr. column on the worksheet. Net Income from the income statement. Withdrawall figure from the balance sheet Dr. column on the worksheet. Balance Sheet Assets from the balance sheet Dr. column on the worksheet. Liabilities and Accumulated Depreciation from the balance sheet Cr. column on the worksheet. New figure for Capital from statement of owner's equity. Note how Plumbing Equipment $7 and Accumulated Depreciation $6 are rearranged on the formal balance sheet. The Total Assets of $22 is not on the worksheet. Remember, no debits or credits appear on formal statements. Solution Tips to Solution Tips to Journalizing and Posting Adjusting Entries (3) The adjustments from the worksheet are journalized (general journal) and posted to the ledger. Now ledger accounts will be brought up to date. Remember, we have already prepared the financial reports from the worksheet. Our goal now is to get the ledger up to date. Expired means used up. 3031=3L The original cost of equipment of $7 is not "touched." \begin{tabular}{l|l|l|l|l} \hline \hline Salaries Expense & Expense & & Dr. & $2 \\ Accrued Salaries & Liability & & Cr. & $2 \\ \hline \end{tabular} - The last four columns of worksheet are prepared from the adjusted trial balance. - Capital of $12 is the old figure. Net income of $10 (revenue - expenses) is brought over to same side as capital on the balance sheet Cr. column to balance columns. Fiast Cempany Iricules Siatericit For die Moptitt Ended Dueciribut 31,2023: Frost Company Income Statement For the Month Ended December 31, 2023 Revenue: Plambing Fees Operating Bxpensen: General Journal Solution Tips for Preparing Financial Statements from a Worksheet (2) Inside columns of the three financial statements are used for subtotalling. No debits or credits appear on the formal statements. Statement Income Statement From income statement columns of worksheet for revenue and expenses. Statement of Owner's Equity Beginning figure for Capital from the balance sheet Cr. column on the worksheet. Net Income from the income statement. Withdrawall figure from the balance sheet Dr. column on the worksheet. Balance Sheet Assets from the balance sheet Dr. column on the worksheet. Liabilities and Accumulated Depreciation from the balance sheet Cr. column on the worksheet. New figure for Capital from statement of owner's equity. Note how Plumbing Equipment $7 and Accumulated Depreciation $6 are rearranged on the formal balance sheet. The Total Assets of $22 is not on the worksheet. Remember, no debits or credits appear on formal statements. Solution Tips to Solution Tips to Journalizing and Posting Adjusting Entries (3) The adjustments from the worksheet are journalized (general journal) and posted to the ledger. Now ledger accounts will be brought up to date. Remember, we have already prepared the financial reports from the worksheet. Our goal now is to get the ledger up to date