Step # 3 (Work Sheet # 3} Calculations to Determine Ending Retain Earnings Balance as at 1213 1f20X3 '1) Adjustments to net income: Prepaid Rent ( in December] Expensed (U2 year of $ Expensed (2e)) 5 Current Portion of Prepaid Insurance (U2 year of $ Expensed (2h) } Umecorded Depreciation Expense [From 2c) Pretax Adjustment to Net Income (Additional Expenses) 5 ii) Net Income Before Tax 2 Revenue Expenses Pretax Adj. to Net Income $- $ $ a