The account balances for the Pittman International Company on January 31, 20X1, follow. The balances shown are after the first month of operations. $ 30,925 1,500 101 Cash 111 Accounts receivable 121 Supplies 131 Prepaid insurance 141 Equipment 142 Accumulated depreciation-Equipment 202 Accounts payable 301 Reginald Pittman, Capital 302 Reginald Pittman, Drawing $ 18,475 3,400 2,150 15.ee 24, eee 401 511 514 517 518 519 52e 523 524 Fees income Advertising expense Depreciation expense-Equipment Insurance expense Rent expense Salaries expense Supplies expense Telephone expense Utilities expense B 2,5ee 6,70 B 350 850 40, eee 2.ee Adjustments: a. Supplies used during the month amounted to $1,050. b. The amount in the Prepaid Insurance account represents a payment made on January 1, 20X1, for six months of Insurance coverage. c. 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: 3. Complete the worksheet. 4. Prepare an Income statement, statement of owner's equity, and balance sheet. 5. 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 3 Req 4 Inc Stmt Req 4 Stmt of Reg 4 Bal Sheet Reg 5 Gen Journal Reg 5 Ledgers 5 Analyze Complete the worksheet. PITTMAN INTERNATIONAL COMPANY Trial Balance Worksheet Month Ended January 31, 20X1 Adjustments Adjusted Trial Balance Debit Credit Credit $ 18,475 Income Statement Balance Sheet Account Name Credit Debit Debit Credit Credit Debit $ 18,475 3,400 3,400 Debit $ 18,475 3,400 1.050 X 12,500 24,000 1,050 X 2.150 15.000 24.000 1.100 X 2,500 Oo oo 12,500 24.000 200 200 200 Cash Accounts receivable Supplies Prepaid insurance Equipment Accumulated depreciation- Equipment Accounts payable Reginald Pittman, Capital Reginald Pittman, Drawing Fees income Advertising expense Depreciation expense- Equipment Insurance expense 6,000 40.000 6,000 34,000 X 6.000 40.000 OOO 2.000 2,000 2.000 30,925 30.025 30.925 1,500 o 1,500 200 1,500 200 2.500 2,500 Rent expense """ 2,500 6,700 0X 2,500 2,500 6,700 Salaries expense 6.700 1,100 % 350 OOOOOOO 350 Supplies expense Telephone expense Utilities expense Totals 850 850 1,100 X 350 850 $ 15,700 s 30,025 15,225 X $ 30,925 $ 30,925 $ 76,925 $ 76,925 Is 0 $ 3.800 S 77.125 $ 71,125 $ 61,425 Net income $ 46,200 15,225 X $ 61,425 $ 61,425 PITTMAN INTERNATIONAL COMPANY Income Statement Month Ended January 31, 20X1 Revenue Fees income $ 30,925 IS Expenses Advertising expense Depreciation expense-Equipment Insurance expense Rent expense Salaries expense Supplies expense Telephone expense Utilities expense 1.500 200 2,500 2,500 6.700 1,100 X 350 850 Total expenses 15.700 $ 15,225 PITTMAN INTERNATIONAL COMPANY Statement of Owner's Equity Month Ended January 31, 20X1 Reginald Pittman, Capital, January 1, 20X1 $ 40,000 Net income for January $ 15,225 X Less: Withdrawals for January (2.000) Increase in capital 13,225 Reginald Pittman, Capital, January 31, 20X1 $ 53,225 PITTMAN INTERNATIONAL COMPANY Balance Sheet January 31, 20X1 Assets Cash $ 18,475 3,400 1.050 X 12,500 $ 24,000 Accounts receivable Supplies Prepaid insurance Equipment Add: Accumulated depreciation Equipment Total Assets Liabilities and owner's equity Liabilities Accounts payable X 200 23,800 $ 59,225 $ 6,000 Owner's Equity Reginald Pittman, Capital $ 53,225 X Total Liabilities and Owner's Equity $ 59,225 No Date General Journal Debit Credit 1 01/31/20X1 1.100 X Supplies expense Supplies 00 1,100 X 2 01/31/20X1 Insurance expense 2.500 Prepaid insurance 2,500 3 01/31/20X1 200 Depreciation expense-Equipment Accumulated depreciation Equipment 200 Supplies Date Debit 2,150 Account No. 121 Credit Balance 2.150 1,100 1.050 Prepaid Insurance Date Debit Jan. 1. 20X1 15,000 Jan. 31, 20X1 Account No. 131 Credit Balance 15,000 Jan. 1. 20X1 Jan. 31, 20X1 2,500 12.500 Account No. 142 Depreciation Expense-Equipment Account No. 514 Accumulated Depreciation- Equipment Date Debit Jan. 31, 20x1 Date Debit Credit Credit 200 Balance 200 Balance 200 Jan. 31, 20x1 200 Account No. 517 Insurance Expense Date Debit Jan. 31, 20X1 2,500 Credit Balance 2,500 Supplies Expense Date Debit Jan. 31, 20X1 1.100 Account No. 520 Credit Balance 1,100 Net income would have been $ X 15,225.00 greater