Problem 5.4A (Static) 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 Januacy 31, 20xt, the first month or operations, is shown beliow. End-of-the-month edjustments must occount for the following items: a. Supplies were purchased on January 1, 20Xt; imentory of supplies on January 31,201, is $3,200 b. The prepaid advertising controct was signed on January 1, 20xi, and covers a four-month period. c. Depreciation is computed using the straight-line method The equipment has an estimated useful ife of to years with no salvage c. Rent of $4,200 expired during the month. value. 2. Prepare an income statement, statement of owner's equity, and bolance sheet. No additional investments ware made by the awrer Required: 1. Complete the worksheet for the month. during the month. 3. Journalize and post the adjusting entries. If the odjusting entries had not been made for the month, by what amount would net income be overstated or understated? Analyze: Complete this question by entering your answers in the tabs below. Problem 5.4A (Static) 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 Januacy 31, 20xt, the first month or operations, is shown beliow. End-of-the-month edjustments must occount for the following items: a. Supplies were purchased on January 1, 20Xt; imentory of supplies on January 31,201, is $3,200 b. The prepaid advertising controct was signed on January 1, 20xi, and covers a four-month period. c. Depreciation is computed using the straight-line method The equipment has an estimated useful ife of to years with no salvage c. Rent of $4,200 expired during the month. value. 2. Prepare an income statement, statement of owner's equity, and bolance sheet. No additional investments ware made by the awrer Required: 1. Complete the worksheet for the month. during the month. 3. Journalize and post the adjusting entries. If the odjusting entries had not been made for the month, by what amount would net income be overstated or understated? Analyze: Complete this question by entering your answers in the tabs below