Preparing financial statements from the worksheet. The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed the first month of operation, appears across the tops of pages 152-153. INSTRUCTIONS 1. Prepare an income statement. 2. Prepare a statement of owner's equity. The owner made no additional investments during the month. 3. Prepare a balance sheet (use the report form). Analyze: If the adjustment to Prepaid Advertising had been $3,400 instead of $1,700, what net income would have resulted? Problem 5.3 Objective 5 152 CHAPTER 5 Adjustments and the Worksheet Month Ended December 31, 2019 TRIAL BALANCE ACCOUNT NAME CREDIT 1 Cash 2 Accounts Receivable a Supplies 65 0 000 6050 00 (o)-3500100 (b) 1700 00 Prepaid Advertising s Equipment 17.0 8 50 00 7 Accounts Payable 8 Selena Cantu, Capital g Selena Cantu, Drawing 0 Fees Income 11 Supplies Expense 12 Advertising Expense 13 Depreciation Expense-Equipment 14 Salaries Expense s Utilities Expense 16 Totals 54 5 00 00 4 100 00 57 7 5 0 00 lfa) 315 0010 (b) 17 00 0 (c) 185,01 00. 900 00 400 00 6050 00 605 0 00 Net Income 1 CHAPTER 5 153 Adjustments and the Worksheet BALANCE SHEET ADJUSTED TRIAL BALANCE INCOME STATEMENT CREDIT DEBIT CREDIT DEBIT DEBIT 39 1 0 0 00 39 1 00 00 6500 0o 25 50 00 8500 00 42 500 00 6 500 00 255000 8 500 00 42 500 00 8 5 0 00 6 6 5 0000 7 54 500 008 85 000 6500 00 54 5 00 4 1 0 0 00 4 1 00 00 57| 75001 57 7 5000 3 5 0000 70000 8 50 00 8900 00 400 00 1 3500 00 700 00 8 50 00 8 9 0000 4 0 0 00 119 600 00 61 85 0 00 16 41 4 00 00 17 1031250100-a 103 2 5 0 00 57 7 50 00 63 50 005 19 6 00 00 41 400 00 57 7 5 0 00 1031 2.5 001 57 75 0 00