Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2016, 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, 2016; inventory of supplies on January 31, 2016, is $1,550.

b. The prepaid advertising contract was signed on January 1, 2016 and covers a four-month period.

c. Rent of $2,050 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.

1. Complete the worksheet for the month.

2.1 Prepare an income statement

2.2 Prepare a statement of owner?s equity.

2.3 Prepare a balance sheet.

3. Journalize and post the adjusting entries. Use the following accounts: Supplies, Prepaid Advertising, Prepaid Rent, Accumulated Depreciation-Equipment, Supplies Expense, Advertising Expense, Rent Expense and Depreciation Expense- Equipment.

JUDGE CREATIVE DESIGNS
Worksheet
Month Ended January 31, 2016
Account Name	Trial Balance	Adjustments	Adjusted Trial Balance	Income Statement	Balance Sheet
Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$ 36,400
Accounts Receivable	13,500
Supplies	9,550
Prepaid Advertising	12,000
Prepaid Rent	24,600
Equipment	32,400
Accumulated Depreciation?Equip.
Accounts Payable		16,450
Paula Judge, Capital		60,900
Paula Judge, Drawing	7,900
Fees Income		71,450
Advertising Expense
Depreciation Expense?Equipment
Rent Expense
Salaries Expense	10,600
Supplies Expense
Utilities Expense	1,850
Sub-Totals	$ 148,800	$ 148,800
Totals

Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2016, 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, 2016; inventory of supplies on January 31, 2016, is $1,550. b. The prepaid advertising contract was signed on January 1, 2016 and covers a four-month period. c. Rent of $2,050 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. 1. Complete the worksheet for the month. 2.1 Prepare an income statement 2.2 Prepare a statement of owner's equity. 2.3 Prepare a balance sheet. 3. Journalize and post the adjusting entries. Use the following accounts: Supplies, Prepaid Advertising, Prepaid Rent, Accumulated Depreciation-Equipment, Supplies Expense, Advertising Expense, Rent Expense and Depreciation Expense- Equipment. JUDGE CREATIVE DESIGNS Worksheet Month Ended January 31, 2016 Account Name Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash $ 36,400 Accounts Receivable 13,500 Supplies 9,550 Prepaid Advertising 12,000 Prepaid Rent 24,600 Equipment 32,400 Accumulated DepreciationEquip. Accounts Payable 16,450 Paula Judge, Capital 60,900 Paula Judge, Drawing 7,900 Fees Income 71,450 Advertising Expense Depreciation ExpenseEquipment Rent Expense Salaries Expense 10,600 Supplies Expense Utilities Expense 1,850 Sub-Totals $ $ Totals 148,800 148,800