Sam Nix owns Nix Estate Planning and Investments. The trial balance of the firm for June 30, 2019, the first month of operations, is shown below.

INSTRUCTIONS
1. Complete the worksheet for the month.
2. Prepare an income statement, statement of owner's equity, and balance sheet. No additional investments were made by the owner during the month.
3. Journalize and post the adjusting entries. Use 3 for the journal page number. Use the account numbers provided in Problem 5.4A.

End-of-month adjustments must account for the following:
a. The supplies were purchased on June 1, 2019; inventory of supplies on June 30, 2019, showed a value of $6,000.
b. The prepaid advertising contract was signed on June 1, 2019, and covers a four-month period.
c. Rent of $6,000 expired during the month.
d. Depreciation is computed using the straight-line method. The equipment has an estimated useful life of five years with no salvage value.
Analyze: Why are the costs that reduce the value of equipment not directly posted to the asset account Equipment?

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Nix Estate Planning and Investments Worksheet (Partlal) Month Ended June 30, 2019 TRIAL BALANCE ACCOUNT NAME CREDIT 21 600 00 1202 00 00 47 61010100 5 2 00 00 2 600 00 289 40000 289 4 00 00 JP's Accounting Services Worksheet Month Ended December 31, 2019 TRIAL BALANCE 120 0 00 6Accumulated Depreciation-Fixtures 60000 15 00000 6000000 a Jackie Peaches, Capital Jackie Peaches, Drawing 6000 00 62 66 000 11 Supplies Expense 120000 1 600 00 600 00 13 Depreciation Expense-Fixtures 13기 6|6000 3 400 00