Question

Required: 2. Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $7,200; expired insurance, $7,000; depreciation expense for the period, $3,100. Analyze: How does the insurance adjustment affect Prepaid Insurance? Complete this question by entering your answers in the tabs below. Partial Worksheet Analyze Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $7,200; expired insurance, $7,000; depreciation expense for the period, $3,100. NEAL COMPANY Worksheet (Partial) Month Ended January 31, 2019 Adjustments Adjusted Trial Balance Debit Credit Debit Credit Account Name Income Statement Debit Credit Balance Sheet Debit Credit $ Trial Balance Debit Credit 103,500 20,300 37,900 57,000 107,500 24,300 251,500 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Alexander Neal, Capital Alexander Neal, Drawing Fees Income Supplies Expense Insurance Expense Salaries Expense Depreciation Expense-Equipment Utilities Expense Sub—Totals 13,900 97,700 30,700 $ 2,700 373,500 S 373,500 Totals

Answer 1

Solution.

Neal Company
Worksheet (Completed)
Month Ended Jan. 31, 2019
Account Name	Trial Balance		Adjustment		Adj. Trial Balance		Income Statement		Balance Sheet
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$         103,500				$ 103,500				$ 103,500
Account Receivable	$           20,300				$    20,300				$    20,300
Supplies	$           37,900			$    30,700	$      7,200				$      7,200
Prepaid Insurance	$           57,000			$      7,000	$    50,000				$    50,000
Equipment	$         107,500				$ 107,500				$ 107,500
Acc. Depreciation-Equipment				$      3,100		$      3,100			$     (3,100)
Account Payable		$    24,300				$    24,300				$      24,300
Alexander Neal, Capital		$ 251,500				$ 251,500				$    251,500
Alexander Neal, Drawing	$           13,900				$    13,900					$    (13,900)
Fee Income		$    97,700				$    97,700		$    97,700
Supplies Expense					$    30,700		$    30,700
Insurance Expense					$      7,000		$      7,000
Salaries Expense	$           30,700				$    30,700		$    30,700
Depreciation Expense-Equipment					$      3,100		$      3,100
Utilities Expense	$             2,700				$      2,700		$      2,700
Sub Total	$         373,500	$ 373,500	$            -	$    40,800	$ 376,600	$ 376,600
Net Income							$    23,500			$      23,500
Total							$    97,700	$    97,700	$ 285,400	$    285,400