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 $900.

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

Rent of $1,400 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?

Please assist with this. Thanks

JUDGE CREATIVE DESIGNS Worksheet Month Ended January 31, 2019 Trial Balance Adjustments Adjusted Trial Balance Debit Income Statement Balance Sheet Account Name Debit Credit Debit Credit Credit Debit Credit Debit Credit $ 35,100 12,200 6,950 6,800 16,800 38,400 Cash Accounts Receivable Supplies Prepaid Advertising Prepaid Rent Equipment Accumulated D Accounts Payable Paula Judge, Capital Paula Judge, Drawing Fees Income Advertising Expense quipment 15,150 59,600 6,600 58,600 Rent Expense Salaries Expense Supplies Expense Utilities Expense Sub Totals 9,300 1,200 $ 133,350$ 133,350 S 0 $ 0 S 0 S Totals