posting to ledger accounts. LO 5-2,5-3,5-4,5-5 Shayla Green owns Creative Designs. The trial balance of the firm for January 31, 20x1, 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, 20X1; inventory of supplies on January 31, 20x1, is $850. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1,350 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, by what amount would net income be overstated or understated? ? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Inc Stmt Reg 2 Stmt of OE Reg 2 Bal Sheet Req 3 Gen Journal Req 3 Ledgers Analyze Complete the worksheet for the month. Account Name Income Statement Debit Credit CREATIVE DESIGNS Worksheet Month Ended January 31, 20X1 Adjustments Adjusted Trial Balance Debit Credit Debit Credit S 75 000 12,100 6.100 S S $ Trial Balance Debit Credit 35,000 12,100 6.750 6,400 16,200 39,000 Balance Sheet Debit Credit 35,000 12,100 050 Caschi Accounts receivable Supplies Prepaid advertising Prepaid rent Equipment Accumulated depreciation-Equipment Anunls payable Shayla Green Capital Shayla Green Drawing 350 : 15,050 59,500 8,500 Fees income 58,350 Advertising expense Depreciation expense-Equipment Rent expense Salaries expense Supplies expense Utilities expense Sutzlotals 9,200 1150 132,900 $ S 132.900 S 0 $ 8,100 47 950 $ 0 $ S 0 $ 47,950 S 0 Totals $ 0 5 0 $ 17,950 $ 0 posting to ledger accounts. LO 5-2,5-3,5-4, 5-5 Shayla Green owns Creative Designs. The trial balance of the firm for January 31, 20X1, 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, 20X1; inventory of supplies on January 31, 20X1, is $850. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1,350 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, by what amount would net income be overstated or understated? Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Inc Stmt Reg 2 Stmt of OE Reg 2 Bal Sheet Req 3 Gen Journal Req 3 Ledgers Analyze Prepare an income statement. CREATIVE DESIGNS Income Statement Month Ended January 31, 20X1 Revenue Expenses Total expenses 0 $ 0 Problem 5.4A (Algo) Preparing a worksheet and financial statements, journalizing adjusting entries, and posting to ledger accounts. LO 5-2,5-3,5-4, 5-5 Shayla Green owns Creative Designs. The trial balance of the firm for January 31, 20X1, 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, 20X1; inventory of supplies on January 31, 20X1, is $850. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1,350 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 not been made for month, by amount would net income be overstated or understated? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Inc Stmt Req 2 Stmt of OE Req 2 Bal Sheet Req 3 Gen Journal Req 3 Ledgers Analyze Prepare a statement of owner's equity. No additional investments were made by the owner during the month. CREATIVE DESIGNS Statement of Owner's Equity Month Ended January 31, 20X1 $ Problem 5.4A (Algo) Preparing a worksheet and financial statements, journalizing adjusting entries, and posting to ledger accounts. LO 5-2,5-3,5-4,5-5 Shayla Green owns Creative Designs. The trial balance of the firm for January 31, 20X1, 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, 20X1; inventory of supplies on January 31, 20x1, is $850. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1,350 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, by what amount would net income be overstated or understated? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Inc Stmt Reg 2 Stmt of OE Reg 2 Bal Sheet Reg 3 Gen Journal Req 3 Ledgers Analyze Prepare a balance sheet. CREATIVE DESIGNS Balance Sheet January 31, 20X1 Assets 0 $ 0 Total assets Liabilities and Owner's Equity Liabilities Owner's Equity Total Liabilities and Owner's Equity Problem 5.4A (Algo) Preparing a worksheet and financial statements, journalizing adjusting entries, and posting to ledger accounts. LO 5-2,5-3,5-4,5-5 Shayla Green owns Creative Designs. The trial balance of the firm for January 31, 20X1, 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, 20X1; inventory of supplies on January 31, 20x1, is $850. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1,350 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 has not been made for the month, by what amount would net income be overstated or understated? Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Inc Stmt Req 2 Stmt of OE Reg 2 Bal Sheet Req 3 Gen Journal Req 3 Ledgers Analyze Journalize the adjusting entries. View transaction list Journal entry worksheet Prepare the adjusting entry for supplies. Note: Enter debits before credits. Date General Journal Debit Credit Jan. 31 20X1 Record entry Clear entry View general journal Problem 5.4A (Algo) Preparing a worksheet and financial statements, journalizing adjusting entries, and posting to ledger accounts. LO 5-2,5-3,5-4,5-5 Shayla Green owns Creative Designs. The trial balance of the firm for January 31, 20x1, 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, 20X1; inventory of supplies on January 31, 20X1, is $850. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1,350 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, by what amount would net income be overstated or understated? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Inc Reg 2 Stmt of Req2 Bal Stmt OE Sheet Req 3 Gen Reg 3 Ledgers Analyze Journal Post the adjusting entries. Prepaid Advertising Account No. 121 Credit Balance Account No. 130 Credit Balance Debit Date Debit Supplies Date Jan 1, 20X1 , Jan. 31, 20X1 Jan 01, 20X1 Jan. 31, 20X1 Prepaid Rent Account No. 131 Account No. 142 Debit Credit Balance Accumulated Depreciation-Equipment Date Debit Jan. 31, 20X1 Credit Date Jan. 1, 20X1 Jan. 31, 20X1 Balance Account No.517 Account No. 519 Supplies Expense Debit Jan 31, 20X1 Date Credit Balance Advertising Expense Date Debit Jan 31, 20X1 , Credit Balance Rent Expense Date Debit Jan 31, 20X1 Account No. 520 Credit Balance Depreciation Expense-Equipment Date Debit Jan 31, 20X1 Account No. 523 Credit Balance Problem 5.4A (Algo) Preparing a worksheet and financial statements, journalizing adjusting entries, and posting to ledger accounts. LO 5-2,5-3,5-4, 5-5 Shayla Green owns Creative Designs. The trial balance of the firm for January 31, 20X1, 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, 20X1; inventory of supplies on January 31, 20X1, is $850. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1,350 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, by what amount would net income be overstated or understated? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Inc Stmt Reg 2 Stmt of OE Reg 2 Bal Sheet Reg 3 Gen Journal Req 3 Ledgers Analyze If the adjusting entries had not been made for the month, by what amount would net income be overstated or understated? Net income Amount