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:

1. Supplies were purchased on January 1, 2019; inventory of supplies on January 31, 2019, is $1,250.
2. The prepaid advertising contract was signed on January 1, 2019, and covers a four-month period.
3. Rent of $1,750 expired during the month.
4. 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 owners 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.

• Req 1
• Req 2 Inc Stmt
• Req 2 Stmt of OE
• Req 2 Bal Sheet
• Req 3 Gen Journal
• Req 3 Ledgers
• Analyze

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	$35,800
Accounts Receivable	12,900
Supplies	8,350
Prepaid Advertising	9,600
Prepaid Rent	21,000
Equipment	25,200
Accumulated DepreciationEquipment
Accounts Payable		15,850
Paula Judge, Capital		60,300
Paula Judge, Drawing	7,300
Fees Income		55,550
Advertising Expense
Depreciation ExpenseEquipment
Rent Expense
Salaries Expense	10,000
Supplies Expense
Utilities Expense	1,550
SubTotals	$131,700	$131,700
Totals