The trial balance of Harding Company as of February 28, 2003, appears below:      A.        Record the trial balance in the Trail...

The trial balance of Harding Company as of February 28, 2003, appears below: 

A.        Record the trial balance in the Trail Balance section of the worksheet.

B.        Complete the worksheet by making the following adjustments:  Supplies on hand at the end of the month, $1,600; expired rent, $1,800; depreciation expense for the period, $500.

Harding Company Worksheet (Partial)

Month Ended February 28, 2003

Account                                                                 Trial Balance                                        Adjustments

                                                                   Debit                          Credit                 Debit                          Credit

Cash                                                       $37,000

Accounts Receivable                          $4,600

Supplies                                                 $2,400

Prepaid Rent                                         $21,600

Equipment                                            $28,000

Accumulated Deprec. – Equip.

Accounts Payable                                                                                     $6,000

Robert Harding, Capital                                                           $67,000

Robert Harding, Drawing                   $2,000

Fees Income                                                                               $27,000

Deprec. Expense – Equip.

Rent Expense

Salaries Expense                                  $3,600

Supplies Expense

Utilities Expense                                  $800

                                                                ------------------------------------------

Totals                                                     $100,000                     $100,000

Analyze:  Why do you think the account Accumulated Depreciation – Equipment has a zero balance on the trial balance shown?