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 $1,450. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1,950 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. Ren 2 Inc Ren 2 Stmt of Rea 2 Pai Ran Gen Check my work Canche the worksheet for the month COLATION DESIGNS Moth Exd January 21, 20 Advements CHIML Debes Creall Cast $ 200 Acab 13300 8.150 11.200 23.400 E 30.000 Accusated deprecat Shayla Green Cap 18250 60.700 Shapa en D 7,700 06 150 Ading pense C 10.400 1750 11100 143300 Halan Beet Credit Deles Cedi Deiber Celt Delay Revenue Expenses Total expenses CREATIVE DESIGNS Income Statement Month Ended January 31, 20x1 Complete this question by antaring your answers in the tabs below. Req 1 Req 2 Inc Stmt Req 2 Stmt of OE Req 2 Ball Req 3 Gen Sheet Journal Req 3 Ledgers Analyze 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 Prepare a balance sheet. Assets CREATIVE DESIGNS Balance Sheet January 31, 20X1 Total assets Liabilities and Owner's Equity Liabilities Owner's Equity Total Liabilities and Owner's Equity Journal entry worksheet < 1 2 3 4 Prepare the adjusting entry for supplies. Note: Enter debits before credits. Date Jan. 31, 20X1 General Journal Debit Credit View general journal Clear entry Record entry Journal entry worksheet < 1 2. 3 4 Prepare the adjusting entry for advertising. Note: Enter debits before credits. Date Jan. 31, 20X1 General Journal Debit Credit View general journal Record entry Clear entry ts eBook Journal entry worksheet eferences 1 2 4 Prepare the adjusting entry for rent. Note: Enter debits before credits. Date Jan. 31, 20X1 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < 1 2 3 ces Prepare the adjusting entry for depreciation. Note: Enter debits before credits. Date Jan. 31, 20X1 General Journal Debit Credit View general journal Record entry Clear entry Req 1 Req 2 Inc Stmt Req 2 Stmt of DE Req 2 Bal Sheet Req 3 Gen Journal Req 3 Ledgers Analyze Post the adjusting entries. Supples Date Jan. 1, 20X1 Jan. 31, 20X11 Prepaid Rent Date Jan 1, 20X1 Jan. 31, 20X1 Prepakt Advertising Account No.121 Debit Credit Balance Date Jan 01, 20X1 Jan 31, 20x1 Account No. 130 Debit Credi Balance Accumulated Depreciation-Equipment Date Account No. 142 Debit Credi Balance Account No.131 Debit Credit Balance Jan 31,20x1 Supplies Expense Date Jan 31,20x1 Date Account No.517 Advertising Experise Debit Credit Balance Date Account No. 519 Debit Credit Balance Jan 31,20x1 Account No. 520 Debit Credit Balance Depreciation Expense-Equipment Date Account No. 523 Debit Credit Balance Jan 31, 20X1 Rent Expense Jan 31, 20X1 Check my work 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. Req 2 Inc Req 1 Stmt Req 2 Stmt of OE Req 2 Bal Sheet Req 3 Gen Journal Req 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 Req 3 Ledgers 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 $1,450. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1,950 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? mework Problems Chapter 5 S Cash Adomes Name $ Tal Balance Dene Cru Deb 30.200 Accounts receivable 13.300 Supplies 9,150 Prepaid advertising 11.200 Prepaid rent 23.400 Equipment 30 000 Accumulated depreciation-Equipmen Accounts payable Shayta Green, Capital 16.250 60,700 Shayla Green, Drawing 7.700 Fees income 66.150] Advertsing expense Depreciation expense-Evement Rent expe Salanes expense Supplies expens Uses expense Sub-as Tutan 10,400 1750 Adinam Help Save & Ex Subrett Check my work Creat Adjusted Trial Balance Deb cos Statement Balones She Credi DAM Cred Debit $ 141100 $ 143,100 $ 05 $ 0 $ 01 05 05 Reg 2 Sm> Trial Balance Debit $ 36,200 13,300 9,150 11,200 23,400 30,000 Adpstmants Credt Debe Credt 16,250 60,700 7,700 66.150 10,400 Help Save & Ex Submit Check my work Adjusted tral Balancs Deter Credit bcome Statement Debit Balance Sheet Cred Debo Credit 1,750) $ 143,100 $ 143,100 $ 0$ 0 $ 05 0 $ 05 0 $ 05 o $ 05 05 05 Req 2 Inc Stmt>