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 $1.500. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. C. Rent of $2,000 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 2 Inc Simt Reg 1 Reg 2 Stmt of OE Reg 2 Bal Sheet Reg 3 Gen Journal Reg 3 Ledgers Analyze Complete the worksheet for the month. CREATIVE DESIGNS Worksheet Month Ended January 31, 20X1 Adjustments Adjusted Trial Balance Debit Credit Debit Credit Income Statement Account Name Balance Sheet Debit Credit Debit Credit S Trial Balance Debit Credit 36,300 13,400 9,350 11,600 24,000 31.200 16,350 60.800 Cash Accounts receivable Supplies Prepaid advertising Prepaid rent Equipment Accumulated depreciation Equipment Accounts payable Shayla Green, Capital Shayla Green, Drawing Fees income Advertising expense Depreciation expense-Equipment Rent expense Salaries expense Supplies expense Utilities expense Subtotals 7,800 68,800 10.500 1,800 145,950 $ S 145.950 Totals Req Req 2 Inc Stmt > 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 $1,500. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $2,000 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 Rey 2 Stmt of Reg 2 Inc Stmt OE Reg 2 Bal Sheet Reg 3 Gen Journal Req 3 Ledgers Analyze Prepare an income statement. CREATIVE DE SIGNS Income Statement Month Ended January 31, 20X1 Revenue Expenses Total expenses 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 $1,500. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $2,000 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 Reg 2 Bal Req 3 Gen OE Sumt Sheet Reg 3 Ledgers Analyze Journal 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 On October 1, 20X1, Helen Kennedy opened an advertising agency. DATE TRANSACTIONS Oct. 1 Helen Kennedy invested $57,eee cash in the business. 2 Paid October office rent of $2,85e; issued Check 1801. The company used the Prepaid Rent account. 5 Purchased desks and other office furniture for $14,700 from Office Furniture Mart, Inc.; received Invoice 6784 payable in 60 days. 6 Issued Check 1ee2 for $3,85e to purchase art equipment. 7 Purchased supplies for $1,40e; paid with Check 1803. 10 Issued Check 1984 for $570 for office cleaning service. 12 Performed services for $3,950 in cash and $1,758 on credit. (Use a compound entry.) 15 Returned damaged supplies for a cash refund of $370. 18 Purchased a computer for $2,858 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1995 for a $1,675 down payment, with the balance payable in 30 days. (Use one compound entry.) 20 Issued Check 1805 for $7,350 to Office Furniture Mart, Inc., as payment on account for Invoice 6704. 26 Performed services for $4,250 on credit. 27 Paid $318 for monthly telephone bill; issued Check 1887. 30 Received $3,558 in cash from credit customers. 30 Mailed Check 1808 to pay the monthly utility bill of $385. 30 Issued Checks 1899-1011 for $7,850 for salaries. Required: 1. Journalize the above transactions. 2. Post the above transactions to the ledger accounts. Analyze: What is the balance of account 202 in the general ledger? Complete this question by entering your answers in the tabs below. General Ledger Journal Accounts Analyze Journalize the above transactions. View transaction list Journal entry worksheet 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 $1,500. b. The prepaid advertising contract was signed on January 1, 20X1. and covers a four-month period. c. Rent of $2,000 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. Rey 1 Reg 2 Inc Sumt Reg 2 Stmt of OE Reg 2 Bal Sheet Reg 3 Gen Journal Req 3 Ledgers Analyze Post the adjusting entries. Supplies Date Debit Jan. 1. 20X1 Jan. 31. 20X1 Account No. 121 Credit Balance Account No. 130 Credit Balance Prepaid Advertising Date Debit Jan. 01. 20X1 Jan. 31. 20X1 Account No.131 Credit Balance Account No. 142 Credit Balance Date Prepaid Rent Debit Jan. 1. 20X1 Jan. 31. 20X1 Accumulated Depreciation Equipment Date Debit Jan 31, 20X1 Supplies Expense Date Debit Jan. 31. 20X1 Account No.517 Credit Balance Advertising Expense Debit Jan 31, 20X1 Account No. 519 Credit Balance Date 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 $1,500. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $2,000 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 Stimt Reg 2 Stmt of OE Reg 2 Bal Sheet Reg 3 Gen Journal Reg 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