Problem 5.4A Objectives 5-1,5-2, 5-3,5-4,5-5 income would have resulted? Preparing a worksheet and financial statements, journalizing adjusting entries, and posting to ledger accounts. Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019. the first month of operations, is shown below. INSTRUCTIONS 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. Use 3 for the journal page number. Use the following account numbers: Supplies, 121: Prepaid Advertising, 130; Prepaid Rent, 131: Accumulated Depreciation-Equipment. 142; Supplies Expense, 517; Advertising Expense, 519; Rent Expense, 520; Depreciation Expense, 523. End-of-the-month adjustments must account for the following items: a. Supplies were purchased on January 1, 2019; inventory of supplies on January 31, 2019, is $1,600. h. The prepaid advertising contract was signed on January 1, 2019, and covers a four-month period Cantu Corporation Worksheet Month Ended December 31, 2019 ADJUSTMENTS ACCOUNT NAME CREDIT DEBIT 39 10 000 650 000 605 000 10 2 0 0 00 42 5 0 0.00 (a) (0) 350 000 170000 (c) 85000 650 000 54 5 0 0 00 2 Accounts Receivable 3 Supplies Prepaid Advertising Equipment Accumulated Depreciation Equipment Accounts Payable Selena Cantu, Capital Selena Conti, Drawing 16 Fees Income 11 Supplies Expense 12 Advertising Experise 1) Depreciation Expense-Equipment 1 Salaries Expense 15 Unies Expense 16. Tots Net Income 4 1 0 0 00 57 75 000 fa) 350 000 (b) 170 000 1085 000 8 90 000 1 40 000 11875 000 118 75 000 GOSO 00605000 e. Rent of $2,100 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. Analyze: If the adjusting entries had not been made for the month, would net income be overstated or understated? Problem 5.4A Objectives 5-1,5-2, 5-3,5-4,5-5 income would have resulted? Preparing a worksheet and financial statements, journalizing adjusting entries, and posting to ledger accounts. Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019. the first month of operations, is shown below. INSTRUCTIONS 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. Use 3 for the journal page number. Use the following account numbers: Supplies, 121: Prepaid Advertising, 130; Prepaid Rent, 131: Accumulated Depreciation-Equipment. 142; Supplies Expense, 517; Advertising Expense, 519; Rent Expense, 520; Depreciation Expense, 523. End-of-the-month adjustments must account for the following items: a. Supplies were purchased on January 1, 2019; inventory of supplies on January 31, 2019, is $1,600. h. The prepaid advertising contract was signed on January 1, 2019, and covers a four-month period Cantu Corporation Worksheet Month Ended December 31, 2019 ADJUSTMENTS ACCOUNT NAME CREDIT DEBIT 39 10 000 650 000 605 000 10 2 0 0 00 42 5 0 0.00 (a) (0) 350 000 170000 (c) 85000 650 000 54 5 0 0 00 2 Accounts Receivable 3 Supplies Prepaid Advertising Equipment Accumulated Depreciation Equipment Accounts Payable Selena Cantu, Capital Selena Conti, Drawing 16 Fees Income 11 Supplies Expense 12 Advertising Experise 1) Depreciation Expense-Equipment 1 Salaries Expense 15 Unies Expense 16. Tots Net Income 4 1 0 0 00 57 75 000 fa) 350 000 (b) 170 000 1085 000 8 90 000 1 40 000 11875 000 118 75 000 GOSO 00605000 e. Rent of $2,100 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. Analyze: If the adjusting entries had not been made for the month, would net income be overstated or understated