what reported net income would have resulted? Critical Thinking

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The Trial Balance section of the worksheet for Contemporary Fashions for the period ended December 31, 2019, appears below. Adjustments data are also given. ADJUSTMENTS a. Supplies used, $3,600 b. Expired insurance, $2,400 c. Depreciation expense for machinery, $1,200 INSTRUCTIONS 1. Complete the worksheet. 2. Prepare an income statement. 3. Prepare a statement of owner’s equity. 4. Prepare a balance sheet. 5. Journalize the adjusting entries in the general journal, page 3. 6. Journalize the closing entries in the general journal, page 4. 7. 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 $2,400, what reported net income would have resulted? Critical Thinking View Solution:
The Trial Balance section of the worksheet for Contemporary Fashions