Problem $5\mathrm{.}4$A $($Algo$)$ Preparing a worksheet and financial statements, journalizing adjusting entries, and

posting to ledger accounts. LO $5-2,5-3,5-4,5-5$

Angela Mosley owns Innovative Designs. The trial balance of the firm for January $31,20$X$1,$ 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 $1,20$X$1$; inventory of supplies on January $31,20$X$1,$ is $$600.$

b$.$ The prepaid advertising contract was signed on January $1,20$X$1,$ and covers a four$-$month period.

c$.$ Rent of $$1,100$ 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:

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 $1$

Req $2$ Income

Req $2$

Statement

Statement of

Req $2$ Balance

Req $3$ General

Sheet

Journal

Req $3$ Ledgers

AnalyzeI do not know which part I did wrong. Could you help me how to complete it correctly, please?