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 $1,600.

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

Rent of $2,100 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?

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

$36,500

Accounts Receivable

13,600

Supplies

9,750

Prepaid Advertising

12,400

Prepaid Rent

25,200

Equipment

33,600

Accumulated DepreciationEquipment

Accounts Payable

16,550

Paula Judge, Capital

61,000

Paula Judge, Drawing

8,000

Fees Income

74,100

Advertising Expense

Depreciation ExpenseEquipment

Rent Expense

Salaries Expense

10,700

Supplies Expense

Utilities Expense

1,900

SubTotals

$151,650

$151,650

Totals