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Problem 5 . 4 A ( Algo ) Preparing a worksheet and financial statements, journalizing adjusting entries, and posting to ledger accounts. LO 5 -
Problem A Algo Preparing a worksheet and financial statements, journalizing adjusting entries, and posting to ledger accounts. LO Angela Mosley owns Innovative Designs. The trial balance of the firm for January X the first month of operations, is shown below. Endofthemonth adjustments must account for the following items: a Supplies were purchased on January X; inventory of supplies on January X is $ b The prepaid advertising contract was signed on January X and covers a fourmonth period. c Rent of $ expired during the month. d Depreciation is computed using the straightline method. The equipment has an estimated useful life of years with no salvage value. Required: Complete the worksheet for the month. Prepare an income statement, statement of owner's 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, by what amount would net income be overstated or understated? Complete this question by entering your answers in the tabs below. Req Req Income Req Statement Statement of Req Balance Req General Sheet Journal Req Ledgers AnalyzeI do not know which part I did wrong. Could you help me how to complete it correctly, please?
Problem A Algo Preparing a worksheet and financial statements, journalizing adjusting entries, and
posting to ledger accounts. LO
Angela Mosley owns Innovative Designs. The trial balance of the firm for January X the first month of operations, is shown
below.
Endofthemonth adjustments must account for the following items:
a Supplies were purchased on January X; inventory of supplies on January X is $
b The prepaid advertising contract was signed on January X and covers a fourmonth period.
c Rent of $ expired during the month.
d Depreciation is computed using the straightline method. The equipment has an estimated useful life of years with no salvage
value.
Required:
Complete the worksheet for the month.
Prepare an income statement, statement of owner's 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, by what amount would net income be overstated or understated?
Complete this question by entering your answers in the tabs below.
Req
Req Income
Req
Statement
Statement of
Req Balance
Req General
Sheet
Journal
Req Ledgers
AnalyzeI do not know which part I did wrong. Could you help me how to complete it correctly, please?
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