You have been asked by your client Toy Store, Inc. to prepare both a classified balance sheet and a classified income statement. Your client has presented you with the attached trial balance for the period ended December 31, 2019 and given you the following additional information to prepare adjusting entries in order to prepare those financial statements. You should use the attached excel worksheet to help complete this engagement.

Additional Information:

1. The supplies count on December 31, 2019 indicates that there are $1400 remaining supplies on hand for use in 2020.
2. Prepaid Insurance represents a payment made on December 1, 2019 for a 12 month policy beginning on that date.
3. Depreciation expense for 2019 is $ 500.
4. December 31, 2019 falls on a Wednesday. The companys pay period is from Monday through Friday and the daily payroll is $ 400 to be paid on Monday January 5, 2020.
5. Income tax expense is $ 850.
6. Unearned revenues at December 31, 2019 are $ 300.
7. On September 1, 2019, Toy Store, Inc. signed a $ 6000. note at a 5% annual interest rate. The note and its interest are due in one year.

C D E 2 WORKSHEET 3 12/31/19 4 TRIAL INCOME BALANCE 5 ACCOUNT BALANCE ADJUSTMENTS STATEMENT SHEET 6 Cash 1500.00 1500.00 7 Supplies 8 Prepaid Insurance 9 Equipment 10 Accumulated Depreciat 2300.00 2300.00 3600.00 3600.00 25000.00 25000.00 -5000.00 -5000.00 11 Wages Payable 12 Notes Payable 13 Interest Payable 14 Unearned Revenue 15 Income Tax Payable 0.00 -6000.00 -6000.00 0.00 -2400.00 2400.00 0.00 16 Common Stock -4000.00 -4000.00 17 Retained Earnings -10000.00 -10000.00 18 Revenues 19 Advertising Expense 20 Insurance Expense -50000.00 -50000.00 1400.00 1400.00 0.00 21 Interest Expense 0.00 22 Depreciation Expense 23 Income Tax Expense 24 Supply Expense 25 Repair Expense 26 Travel Expense 27 Auto Expense 0.00 0.00 0.00 3500.00 3500.00 1100.00 1100.00 3100.00 3100.00 28 Payroll Tax Expense 29 Wage Expense 3750.00 3750.00 32150.00 32150.00 30 31 0.00 0.00 -5000.00 5000,00 2 Shoot1 Shoot? Shoot2 no