The trial balance of Nixon Company as of January 31, 2016, after the company completed the first month of operations, is shown in the partial worksheet below.

INSTRUCTIONS
1. Record the trial balance in the Trial Balance section of the worksheet.
2. Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $4,200; expired insurance, $5,500; depreciation expense for the period, $1,600.
Analyze:
How does the insurance adjustment affect PrepaidInsurance?

Transcribed Image Text:

Nixon Company Worksheet (Partlal) Month Ended January 31, 2016 TRIAL BALANCE ADJUSTMENTS ACCOUNT NAME DEBIT CREDIT DEEIT CAEDIT Cash 2 Accounts Receivoble 105 00 000 21 8 0 0 o0 39 4 0 0 00 66 0 0 0 00 109 0 0 0 00 Supplies Prepaid Insurance sEquipment Accumulated Depreciation Equipment Accounts Payable a Robert Nixon, Copital 25 8 0 0 00 253 0 0 0 00 Robert Nixon, Drawing 1o Fees Income 11 Depreciation Expense Equipment 12 Insurance Expense a Salares Expense 4 Supplies Expense 15 Utiuities Expense 1 Totals 15 40 0 00 114 2 0 0 00 32 200 00 4 200 00 393 0 00 00 393 000 00