(Solved): The Trial Balance section of the worksheet for Fashion World for the period ended December 31, 20X1, ...

The Trial Balance section of the worksheet for Fashion World for the period ended December 31, 20X1, appears below. Adjustments data are also given.

ADJUSTMENTS

Supplies used, $7,630

Expired insurance, $5,150

Depreciation expense for machinery, $2,930

Required:

Complete the worksheet.

Prepare an income statement.

Prepare a statement of owner’s equity.

Prepare a balance sheet.

Journalize the adjusting entries in the general journal.

Journalize the closing entries in the general journal.

Prepare a postclosing trial balance.

Analyze:

If the adjusting entry for expired insurance had been recorded in error as a credit to Insurance Expense and a debit to Prepaid Insurance for $5,150, what reported net income would have resulted?

FASHION WORLD Worksheet FASHION WORLD Statement of Owner's Equity Month Ended December 31, 20X1 Journal entry worksheet 4 5 Note: Enter debits before credits. Journal entry worksheet 4 5 Record the adjusting entry for insurance. Note: Enter debits before credits. Journal entry worksheet < 12 Record the closing entry for revenue. Note: Enter debits before credits. If the adjusting entry for expired insurance had been recorded in error as a credit to Insurance Expense and a debit to Prepaid Insurance for $$\$5,150$$, what reported net income would have resulted?