Angela Mosley owns Innovatlve Designs. The trlal balance of the firm for January $31,20$X$1,$ the first month of operations, is shown

below.

End$-$of$-$the$-$month adjustments must account for the following items:

a$.$ Supplies were purchased on January $1,201$; Inventory of supplies on January $31,201,$ is $$850.$

b$.$ The prepaid advertising contract was signed on January $1,20$X$1,$ and covers a four$-$month perlod.

c$.$ Rent of $$1,350$ expired durling the month.

d$.$ Depreclation is computed using the straight$-$Ine method. The equipment has an estimated useful life of $10$ years with no salvage

value.

Required:

Complete the worksheet for the month.

Prepare an Income statement, statement of owner's equity, and balance sheet. No additional Investments were made by the

owner during the month.

Journalize and post the adjusting entrles.

Analyze

If the adjusting entrles had not been made for the month, by what amount would net income be overstated or understated?

Complete this question by entering your answers in the tabs below.

Prepare a statement of owner's equity. No additional investments were made by the owner during the month.