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: a. Supplies were purchased on January 1, 2019; inventory of supplies on January 31, 2019, is $1,250. b. The prepaid advertising contract was signed on January 1, 2019, and covers a four-month period. c. Rent of $1,750 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. Required: 1. Complete the worksheet for the month. 2. Prepare an income statement, statement of owner's equity, and balance sheet. No additional investments were made by the owner during the month 3. 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? Complete this question by entering your answers in the tabs below. VE Sheet Journal Red 3 Ledgers Analyze Complete the worksheet for the month Account Name Income Statement Debit Credit $ Cash Accounts Receivable Supplies Prepaid Advertising Prepaid Rent Equipment Accumulated Depreciation Equipment Accounts Payable Paula Judge Capital Paula Judge Drawing Fees Income Tulal Balance Debit Credit 35.000 12.900 8,350 9.600 21,000 25 200 JULGE CREATIVE DESIGNS Worksheet Month Ended January 31, 2019 Adjustments Adjusted Trial Balance Debit Credit Debit Credit S35,000 12.900 7.100 1.250 2.4001 7.2001 1.750 19.250 25,200 2101 2101 15 850 60,300 7.300 55,550 15,850 60.300 7.300 55 550 55 550 JUDGE CREATIVE DESIGNS Income Statement Month Ended January 31, 2019 Revenue Fees income Expenses Advertising expense Depreciation expense-equipment Rent expense Salaries expense Supplies expense Utilities expense Total expenses 0 $ 0 JUDGE CREATIVE DESIGNS Statement of Owner's Equity Month Ended January 31, 2019 0 $ 0 JUDGE CREATIVE DESIGNS Balance Sheet January 31, 2019 Assets 0 $ 0 Total assets Liabilities and owner's equity Liabilities Owner's Equity Journal entry worksheet Prepare the adjusting entry for depreciation. Note: Enter debits before credits. Date General Journal Debit Credit Jan 31, 2019 Record entry Clear entry View general journal Account No.121 Credit Account No. 130 Balance Balance Supplies Date Debit Jan 1, 2019 Jan 31, 2019 Credit Prepaid Advertising Date Debit Jan 01, 2019 Jan 31, 2019 Account No.131 Accumulated Depreciation- Equipment Date Debit Account No. 142 Prepaid Rent Date Debit Jan 1, 2019 Jan 31, 2019 Credit Balance Credit Balance Jan 31, 2019 Account No.517 Account No. 519 Supplies Expense Date Debit Jan 31, 2019 Credit Balance Advertising Expense Date Debit Jan 31, 2019 Credit Balance Account No. 520 Account No. 523 Rent Expense Date Debit Jan 31, 2019 Credit Balance Depreciation Expense- Equipment Date Debit Jan 31, 2019 Credit Balance