Problem 5.3A (Algo) Preparing financial statements from the worksheet. LO 5-4 The completed worksheet for Chavarria Corporation as of December 31, 20X1, after the company had completed the first month of operation, appears below. CHAVARRIA CORPORATION Worksheet Month Ended December 31, 20X1 Adjustments Debit Credit Income Statement Debit Credit Trial Balance Debit Credit 77, 100 11, 900 9, 900 13, 800 87,500 Adjusted Trial Balance Debit Credit 77, 100 11, 900 4,000 11, 500 87,500 Balance Sheet Debit Credit 77, 100 11, 900 4,000 11, 500 87,500 5, 900 2,300 1, 750 1, 750 1,750 11, 900 107,900 11, 900 107, 900 11, 900 107, 900 Account Name Cash Accounts receivable Supplies Prepaid advertising Equipment Accumulated depreciation-Equipment Accounts payable Isabel Chavarria, Capital Isabel Chavarria, Drawing Fees income Supplies expense Advertising expense Depreciation expense-Equipment Salaries expense Utilities expense Totals Net income 7, 100 7,100 7, 100 105, 900 105, 900 105, 900 5, 900 2, 300 1,750 16, 700 1,700 225, 700 5, 900 2,300 1, 750 16, 700 1, 700 227, 450 5,900 2,300 1, 750 16, 700 1,700 28, 350 77, 550 105, 900 225, 700 9,950 9,950 227, 450 105, 900 199, 100 121, 550 77,550 199, 100 105, 900 199, 100 Required: 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. Required: 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. Analyze: If the adjustment to Prepaid Advertising had been $4,600 instead of $2,300, what net income would have resulted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Analyze If the adjustment to Prepaid Advertising had been $4,600 instead of $2,300, what net income would have resulted? Net income Required 1 Required 2 Required 3 Analyze Prepare a statement of owner's equity. The owner made no additional investments during the month. CHAVARRIA CORPORATION Statement of Owner's Equity Month Ended December 31, 20X1 0 $ 0 Required 1 Required 2 Required 3 Analyze Prepare a balance sheet. CHAVARRIA CORPORATION Balance Sheet December 31, 20X1 Assets 0 Total Assets $ 0 Liabilities and Owner's Equity Liabilities Owner's equity Total Liabilities and Owner's Equity $ 0