The balances of the ledger accounts for Oleman Services on January 31, 20X1, and the information needed for adjustments are shown below. Account Name Cash Accounts receivable Supplies Prepaid insurance Equipment Balance $ 6,500 3,500 1,200 3,000 7,500 Accumulated depreciation - Equipment Accounts payable Jeff Oleman, Capital Jeff Oleman, Drawing Fees income Advertising expense Rent expense 3,400 17,500 1,500 9,500 600 1,200 Salaries expense Supplies expense Insurance expense Utilities expense Depreciation expense-Equipment 5,000 400 Adjustment information: A. The supplies were purchased on January 1, 20×1. An inventory of supplies showed $600 on hand on January 31, 20X1. B. The amount of Prepaid Insurance represents a payment made January 1, 20X1, for a six-month insurance policy. C. The equipment, purchased January 1, 20X1, has an estimated useful life of 5 years with no salvage value. The firm uses the straight- line method of depreciation. Prepare the Trial Balance section, record the adjustments, and complete the worksheet. OLEMAN SERVICES Worksheet Month Ended January 31, 20X1 TRIAL BALANCE ADJUSTMENTS ACCOUNT NAME Debit Credit Debit Credit Debit ADJUSTED TRIAL BALANCE Credit INCOME STATEMENT Debit BALANCE SHEET Credit Debit Credit Cash $ 6,500 $ 6,500 $ 6,500 Accounts receivable 3,500 3,500 3,500 Supplies 1,200 600 600 600 Prepaid insurance 3,000 500 2,500 Equipment 7,500 7,500 2,500 7,500 Accumulated depreciation-Equipment 125 125 125 Accounts payable 3,400 3,400 3,400 Jeff Oleman, Capital 17,500 17,500 17,500 Jeff Oleman, Drawing 1,500 1,500 1,500 Fees income 9,500 9,500 9,500 Advertising expense 600 600 600 Rent expense 1,200 1,200 1,200 Salaries expense 5,000 5,000 5,000 Supplies expense 600 600 600 Insurance expense 500 500 500 Utilities expense 400 400 400 Totals Depreciation expense-Equipment Net income 125 125 125 $ 30,400 $ 30,400 $ 0 $ 1,225 $ 30,525 $ 30,525 S 1,225 $ 0 $ 30,525 $ 30,525 $ 1,225 $ 0 $ 30,525 $ 30,525 The balances of the ledger accounts for Oleman Services on January 31, 20X1, and the information needed for adjustments are shown below. Account Name Cash Accounts receivable Supplies Prepaid insurance Equipment Balance $ 6,500 3,500 1,200 3,000 7,500 Accumulated depreciation - Equipment Accounts payable Jeff Oleman, Capital Jeff Oleman, Drawing Fees income Advertising expense Rent expense 3,400 17,500 1,500 9,500 600 1,200 Salaries expense Supplies expense Insurance expense Utilities expense Depreciation expense-Equipment 5,000 400 Adjustment information: A. The supplies were purchased on January 1, 20×1. An inventory of supplies showed $600 on hand on January 31, 20X1. B. The amount of Prepaid Insurance represents a payment made January 1, 20X1, for a six-month insurance policy. C. The equipment, purchased January 1, 20X1, has an estimated useful life of 5 years with no salvage value. The firm uses the straight- line method of depreciation. Prepare the Trial Balance section, record the adjustments, and complete the worksheet. OLEMAN SERVICES Worksheet Month Ended January 31, 20X1 TRIAL BALANCE ADJUSTMENTS ACCOUNT NAME Debit Credit Debit Credit Debit ADJUSTED TRIAL BALANCE Credit INCOME STATEMENT Debit BALANCE SHEET Credit Debit Credit Cash $ 6,500 $ 6,500 $ 6,500 Accounts receivable 3,500 3,500 3,500 Supplies 1,200 600 600 600 Prepaid insurance 3,000 500 2,500 Equipment 7,500 7,500 2,500 7,500 Accumulated depreciation-Equipment 125 125 125 Accounts payable 3,400 3,400 3,400 Jeff Oleman, Capital 17,500 17,500 17,500 Jeff Oleman, Drawing 1,500 1,500 1,500 Fees income 9,500 9,500 9,500 Advertising expense 600 600 600 Rent expense 1,200 1,200 1,200 Salaries expense 5,000 5,000 5,000 Supplies expense 600 600 600 Insurance expense 500 500 500 Utilities expense 400 400 400 Totals Depreciation expense-Equipment Net income 125 125 125 $ 30,400 $ 30,400 $ 0 $ 1,225 $ 30,525 $ 30,525 S 1,225 $ 0 $ 30,525 $ 30,525 $ 1,225 $ 0 $ 30,525 $ 30,525