Complete the worksheet for the month.

JUDGE CREATIVE DESIGNS
Worksheet
Month Ended January 31, 2019
Account Name	Trial Balance			Adjustments			Adjusted Trial Balance			Income Statement			Balance Sheet
		Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$36,500				$36,500				$36,500
Accounts Receivable	13,600				13,600				13,600
Supplies	9,750			8,150	1,600				1,600
Prepaid Advertising	12,400			3,100	9,300				9,300
Prepaid Rent	25,200			2,100	23,100				23,100
Equipment	33,600				33,600				33,600
Accumulated DepreciationEquipment				3,360		3,360				3,360
Accounts Payable		16,550				16,550				16,550
Paula Judge, Capital		61,000				61,000				61,000
Paula Judge, Drawing	8,000				8,000				8,000
Fees Income		74,100				74,100		74,100
Advertising Expense			3,100		3,100		3,100
Depreciation ExpenseEquipment			3,360		3,360		3,360
Rent Expense			2,100		2,100		2,100
Salaries Expense	10,700			10,700	10,700		10,700
Supplies Expense			8,150		8,150		8,150
Utilities Expense	1,900			1,900	1,900		1,900
SubTotals	$151,650	$151,650	$16,710	$29,310	$155,010	$155,010	$29,310	$74,100	$125,700	$80,910
Totals												$29,310	$74,100	$125,700	$80,910

Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019, the first month of operations, is shown below. End-of-the-month adjustments must account for the following items:

Supplies were purchased on January 1, 2019; inventory of supplies on January 31, 2019, is $1,600.

The prepaid advertising contract was signed on January 1, 2019, and covers a four-month period.

Rent of $2,100 expired during the month.

Depreciation is computed using the straight-line 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 owners equity, and balance sheet. No additional investments were made by the owner during the month.

Journalize and post the adjusting entries.

Analyze If the adjusting entries had not been made for the month, would net income be overstated or understated?

Prepare an income statement.

JUDGE CREATIVE DESIGNS

Income Statement

Month Ended January 31, 2019

Revenue

Expenses

Total expenses

0

$0

Prepare a statement of owners equity.

JUDGE CREATIVE DESIGNS

Statement of Owner's Equity

Month Ended January 31, 2019

0

$0

Prepare a balance sheet.

JUDGE CREATIVE DESIGNS
Balance Sheet
January 31, 2019
Assets
		0
Total assets		$0
Liabilities and owner's equity
Liabilities
Owner's Equity
Total Liabilities and Owner's Equity		$0