P4-2A The adjusted trial balance columns of the worksheet for Watson Company, Ltd. are as follows. WATSON COMPANY, LTD. Worksheet For the Year Ended December 31, 2017 Adjusted Trial Balance Account No. Account Titles Dr. Cr. 101 Cash 17,800 112 14,400 Accounts Receivable Supplies 126 2,300 Adjusted Trial Balance Dr. Cr. Account No. Account Titles 4,400 130 Prepaid Insurance 46,000 157 Equipment 18,000 158 Accumulated Depreciation-Equipment 20,000 200 Notes Payable 8,000 201 Accounts Payable 2,600 212 Salaries and Wages Payable 1,000 230 Interest Payable 15,000 311 Share Capital-Ordinary 9,800 320 Retained Earnings 12,000 332 Dividends 86,200 400 Service Revenue 610 Advertising Expense 10,000 631 Supplies Expense 3,700 711 Depreciation Expense 6,000 722 Insurance Expense 4,000 726 Salaries and Wages Expense 39,000 905 Interest Expense 1,000 Totals 160,600 160,600 Instructions (a) Complete the worksheet by extending the balances to the financial statement columns. (b) Prepare an income statement, a retained earnings statement, and a classified state- ment of financial position (amounts in British pounds). (Note: 5,000 of the notes payable become due in 2018.) (c) Prepare the closing entries. Use J14 for the journal page. (d) Post the closing entries. Use the three-column form of account. Income Summary is account No. 350. (e) Prepare a post-closing trial balance.