The account balances for the Patterson International Company on January 31, 2019, follow. The balances shown are after the first month of operations. 101 Cash $ 36,950 401 Fees Income $ 61,850 111 Accounts Receivable 6,800 511 Advertising Expense 3,000 121 Supplies 4,300 514 Depr. ExpenseEquip. 0 131 Prepaid Insurance 30,000 517 Insurance Expense 0 141 Equipment 48,000 518 Rent Expense 5000 142 Accum. Depr.Equip. 0 519 Salaries Expense 13,400 202 Accounts Payable 12,000 520 Supplies Expense 0 301 Roger Patterson, Capital 80,000 523 Telephone Expense 700 302 Roger Patterson, Drawing 4,000 524 Utilities Expense 1,700 Adjustments: Supplies used during the month amounted to $2,100. The amount in the Prepaid Insurance account represents a payment made on January 1, 2019, for six months of insurance coverage. The equipment, purchased on January 1, 2019, has an estimated useful life of 10 years with no salvage value. The firm uses the straight-line method of depreciation. Required: Complete the worksheet. Prepare an income statement, Statement of owners equity, and balance sheet. Record the balances in the general ledger accounts, then journalize and post the adjusting entries. Analyze: If the useful life of the equipment had been 12 years instead of 10 years, how would net income have been affected?

Adjustments:

1. Supplies used during the month amounted to $2,100.
2. The amount in the Prepaid Insurance account represents a payment made on January 1, 2019, for six months of insurance coverage.
3. The equipment, purchased on January 1, 2019, has an estimated useful life of 10 years with no salvage value. The firm uses the straight-line method of depreciation.

Required:

3. Complete the worksheet.
4. Prepare an income statement, Statement of owners equity and balance sheet.
5. Record the balances in the general ledger accounts, then journalize and post the adjusting entries.

Analyze: If the useful life of the equipment had been 12 years instead of 10 years, how would net income have been affected?

Complete this question by entering your answers in the tabs below.

• Req 3
• Req 4 Inc Stmt
• Req 4 Stmt of OE
• Req 4 Bal Sheet
• Req 5 Gen Journal
• Req 5 Ledgers
• Analyze