Chapter 4, Problem 4E

The following data are taken from the unadjusted trial balance of the Westcott Company at December 31. Each account carries a normal balance. Set up a 10-column work sheet to answer the requirements.

1. 1. Enter the accounts in proper order and enter their balances in the correct Debit or Credit column of the Unadjusted Trial Balance columns of the 10-column work sheet.
2. 2. Use the following adjustment information to complete the Adjustments columns of the work sheet from part 1.
   1. a. Depreciation on equipment, $3
   2. b. Accrued salaries, $6
   3. c. The $12 of unearned revenue has been earned
   4. d. Supplies available at December 31, $15
   5. e. Expired insurance, $15
3. 3. Extend the balances in the Adjusted Trial Balance columns of the work sheet to the proper financial statement columns. Compute totals for those columns, including net income.