The adjusted trial balance columns of the worksheet for Watson Company are as follows.

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 balance sheet.
(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 trialbalance.

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Watson Company Worksheet For the Year Ended December 31, 2014 Adjusted Trial Balance Account Account Titles Accounts Receivable Accumulated Depreciation-Equipment Notes Payable Salaries and Wages Payable Retained Earnings 8 Depreciation Expensc nsurance Expense Salaries and Wages Expense 160,600 160,600