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The completed work sheet for Chelsey Decorators for the month of March is presented below.

Chelsey Decorators
Work Sheet
For Month Ended March 31, 20--
		TRIAL BALANCE		ADJUSTMENTS		ADJUSTED TRIAL BALANCE		INCOME STATEMENT		BALANCE SHEET
	ACCOUNT NAME	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
1	Cash	6,230				6,230				6,230		1
2	Supplies	532			(f) 180	352				352		2
3	Prepaid Insurance	1,248			(a) 260	988				988		3
4	Equipment	6,285				6,285				6,285		4
5	Accumulated Depreciation, Equipment		3,520		(b) 600		4,120				4,120	5
6	Office Furniture	3,680				3,680				3,680		6
7	Accumulated Depreciation, Office Furniture		2,816		(c) 470		3,286				3,286	7
8	Truck	23,799				23,799				23,799		8
9	Accumulated Depreciation, Truck		18,163		(d) 762		18,925				18,925	9
10	Accounts Payable		2,623				2,623				2,623	10
11	D. Chelsey, Capital		10,672				10,672				10,672	11
12	D. Chelsey, Drawing	3,500				3,500				3,500		12
13	Professional Fees		12,589				12,589		12,589			13
14	Salaries Expense	2,455		(e) 480		2,935		2,935				14
15	Rent Expense	1,325				1,325		1,325				15
16	Travel Expense	398				398		398				16
17	Utilities Expense	196				196		196				17
18	Advertising Expense	590				590		590				18
19	Miscellaneous Expense	145				145		145				19
20		50,383	50,383									20
21	Insurance Expense			(a) 260		260		260				21
22	Depreciation Expense, Equipment			(b) 600		600		600				22
23	Depreciation Expense, Office Furniture			(c) 470		470		470				23
24	Depreciation Expense, Truck			(d) 762		762		762				24
25	Salaries Payable				(e) 480		480				480	25
26	Supplies Expense			(f) 180		180		180				26
27				2,752	2,752	52,695	52,695	7,861	12,589	44,834	40,106	27
28	Net Income							4,728			4,728	28
29								12,589	12,589	44,834	44,834	29
30												30
31												31

Required:

1. Journalize the adjusting entries. Journalize the adjustments in the order given in the question.

GENERAL JOURNAL
DATE	DESCRIPTION		POST. REF.	DEBIT	CREDIT
20--	Adjusting Entries
Mar. 31
Mar. 31
Mar. 31
Mar. 31
Mar. 31
Mar. 31

2. Prepare an income statement.

Chelsey Decorators
Income Statement
For Month Ended March 31, 20--
Revenue:
		$
Expenses:
	$
Total Expenses
Net Income		$

3. Prepare a statement of owner's equity. Assume that no additional investments were made in March. If an amount is zero, enter "0".

Chelsey Decorators
Statement of Owner's Equity
For Month Ended March 31, 20--
		$
	$
Subtotal	$
		$

4. Prepare a balance sheet.

Chelsey Decorators
Balance Sheet
March 31, 20--
Assets
		$
	$
	$
	$
Total Assets		$
Liabilities
	$
Total Liabilities		$
Owner's Equity
Total Liabilities and Owner's Equity		$

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