Textbook Problem

The trial balance for Wilson Financial Services on January 31 is as follows:

Data for month-end adjustments are as follows:

1. a. Expired or used-up insurance, $750.
2. b. Depreciation expense on equipment, $300.
3. c. Wages accrued or earned since the last payday, $1,055 (owed and to be paid on the next payday).
4. d. Supplies used, $535.

Required

1. 1. Complete a work sheet for the month. (Skip this step if using CLGL.)
2. 2. Journalize the adjusting entries.
3. 3. If using CLGL, prepare an adjusted trial balance.
4. 4. Prepare an income statement, a statement of owner’s equity, and a balance sheet. Assume that no additional investments were made during January.