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 $1.300. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1.800 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 Stmt Reg 2 Stmt of OE Reg 2 Bal Sheet Req 3 Gen Journal Req 3 Ledgers Analyze Complete the worksheet for the month. CREATIVE DE SIGNS Worksheet Month Ended January 31, 20X1 Adjustments Adjusted Trial Balance Debit Credit Debit Credit Account Name Income Statement Debit Credit Balance Sheet Debit Credit $ Trial Balance Debit Credit 35,900 13,000 8,550 10,000 21,600 26,400 15,950 60,400 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 Sub-totals 7,400 58,200 10,100 1,600 134,550 $ $ 134,550 Totals CREATIVE DESIGNS Income Statement Month Ended January 31, 20X1 Revenue Expenses Total expenses CREATIVE DESIGNS Statement of Owner's Equity Month Ended January 31, 20X1 CREATIVE DESIGNS Balance Sheet January 31, 20X1 Assets Total assets Liabilities and Owner's Equity Liabilities Owner's Equity Total Liabilities and Owner's Equity Journal entry worksheet N Prepare the adjusting entry for rent. Note: Enter debits before credits. General Journal Debit Credit Date Jan. 31, 20X1 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 Prepare the adjusting entry for depreciation. Note: Enter debits before credits. General Journal Debit Credit Date Jan. 31, 20X1 Record entry Clear entry View general journal Account No.121 Credit Balance Account No. 130 Credit Balance Debit Supplies Date Jan. 1, 20X1 Jan. 31, 20X1 Prepaid Advertising Date Debit Jan. 01, 20X1 Jan. 31, 20X1 Account No.131 Credit Balance Prepaid Rent Date Debit Jan 1, 20X1 Jan. 31, 20X1 Accumulated Depreciation Equipment Date Debit Jan. 31, 20X1 Account No. 142 Credit Balance Supplies Expense Date Debit Jan. 31, 20X1 Account No.517 Credit Balance Advertising Expense Date Debit Jan 31, 20X1 Account No. 519 Credit Balance 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 Net income Amount