actice Set 1: Service Business Accounting Cycle 2 03:05:55 Saved Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019, the first month of operations, is included on the trial balance tab. End-of-the-month adjustments must account for the following items: a. Supplies were purchased on January 1, 2019; inventory of supplies on January 31, 2019, is $1,600. b. The prepaid advertising contract was signed on January 1, 2019, and covers a four-month period. c. Rent of $2,100 expired during the month. d. Depreciation is computed using the straight-line method. The equipment has an estimated useful life of 10 years with no salvage value. Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet Impact on Income Show less 33% of available points General Journal tab - For transactions 1-4, review the unadjusted balance (See the general ledger tab) and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the financial statements for accuracy. No input required General Ledger tab- Each journal entry is posted automatically to the general ledger. Use the dropdown button to view the unadjusted or adjusted balances. No input required Trial Balance tab - You may view either the unadjusted or adjusted trial balance by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. 14% of available points Income Statement tab- Use the dropdowns to select the accounts to be displayed (Unadjusted or Adjusted). The balances will appear for each account, based on your selection.. No input required -Statement of Owner's Equity tab - The unadjusted or adjusted balances will appear for each account, based on your selection. 27% of available points Balance Sheet tab - Use the dropdowns to select the accounts to be displayed (Unadjusted or Adjusted). The balances will appear for each account, based on your selection. 26% of available points - Impact on Income tab For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. < Prev 2 of 3 Next > Help