Shayla Green owns Creative Designs. The trial balance of the firm for January 31, 20X1, the first month of operations, is shown below.

I provided worksheet, but I'm not sure all of the answers are correct. Please review worksheet and fill out adjusting entries. Thanks.

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 $1,050. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1,550 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? Income Statement Account Name Debit Credit S S Trial Balance Debit Credit 35,400 12,500 7,550 B,000 18,600 34,800 CREATIVE DESIGNS Worksheet Month Ended January 31, 20X1 Adjustments Adjusted Trial Balance Debit Credit Debit Credit S 35,400 12,500 6.500 1,050 2.000 6,000 1,550 17,050 34,800 290 290 15,450 59,900 6.900 Balance Sheet Debit Credit 35,400 12,500 1,050 6,000 17,050 34,800 290 15,450 15,450 59,900 97,960 6,900 6.900 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 Net income Totals 59,350 59,350 59,350 2,000 2,000 2,000 290 290 290 1,550 9,600 1,5501 9,600 6,500 6,500 1,350 1,350 134,990 $ 1,550 9,600 6,500 1,350 21,290 $ 38,060 59,350 $ S 134,700 $ 134,700 S S 10,340 $ 10.340 S 134,990 S 59,350 S 113,700 $ 113,700 S 59.350 S 113,700 $ 113.700 Req 2 Inc Stmt Req 1 Req 2 Stmt of OE Req 2 Bal Req 3 Gen Journal Req 3 Ledgers Sheet Analyze Post the adjusting entries. Supplies Account No. 121 Prepaid Advertising Account No. 130 Date Debit Credit Balance Date Debit Credit Balance Jan. 1, 20X1 Jan. 31, 20X1 Jan. 01, 20X1 Jan. 31, 20X1 Prepaid Rent Account No.131 Accumulated Depreciation Equipment Account No. 142 Date Debit Credit Balance Date Debit Credit Balance Jan. 1, 20X1 Jan. 31, 20X1 Jan. 31, 20X1 Supplies Expense Account No.517 Advertising Expense Account No. 519 Date Debit Credit Balance Date Debit Credit Balance Jan. 31, 20X1 Jan. 31, 20X1 Rent Expense Account No. 520 Account No. 523 Depreciation Expense-Equipment Date Debit Date Debit Credit Balance Credit Balance Jan. 31, 20X1 Jan. 31, 20X1