The account balances for the Pittman International Company on January 31, 20X1, follow. The balances shown are after the first month of operations.

101		Cash	$	18,515		401		Fees income	$	31,065
111		Accounts receivable		3,400		511		Advertising expense		1,520
121		Supplies		2,180		514		Depreciation expenseEquipment		0
131		Prepaid insurance		15,150		517		Insurance expense		0
141		Equipment		24,500		518		Rent expense		2,500
142		Accumulated depreciationEquipment		0		519		Salaries expense		6,740
202		Accounts payable		6,050		520		Supplies expense		0
301		Reginald Pittman, Capital		40,650		523		Telephone expense		350
302		Reginald Pittman, Drawing		2,050		524		Utilities expense		860

Adjustments:

Supplies used during the month amounted to $1,065.

The amount in the Prepaid Insurance account represents a payment made on January 1, 20X1, for 6 months of insurance coverage.

The equipment, purchased on January 1, 20X1, 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 selected 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?

PITTMAN INTERNATIONAL COMPANY Worksheet Month Ended January 31, 20X1 PITTMAN INTERNATIONAL COMPANY Income Statement Month Ended January 31, 20X1 Revenue Expenses PITTMAN INTERNATIONAL COMPANY Statement of Owner's Equity Month Ended January 31, 20X1 Journal entry worksheet Prepare the adjusting entry for supplies. Note: Enter debits before credits. Journal entry worksheet Prepare the adjusting entry for insurance. Note: Enter debits before credits. Journal entry worksheet Prepare the adjusting entry for depreciation. Note: Enter debits before credits. Net income would have been PITTMAN INTERNATIONAL COMPANY Worksheet Month Ended January 31, 20X1 PITTMAN INTERNATIONAL COMPANY Income Statement Month Ended January 31, 20X1 Revenue Expenses PITTMAN INTERNATIONAL COMPANY Statement of Owner's Equity Month Ended January 31, 20X1 Journal entry worksheet Prepare the adjusting entry for supplies. Note: Enter debits before credits. Journal entry worksheet Prepare the adjusting entry for insurance. Note: Enter debits before credits. Journal entry worksheet Prepare the adjusting entry for depreciation. Note: Enter debits before credits. Net income would have been