The completed worksheet for Chavarria Corporation as of December 31, 20X1, after the company had completed the first month of operation, appears below.

CHAVARRIA CORPORATION Worksheet Month Ended December 31, 20X1
		Trial Balance						Adjustments						Adjusted Trial Balance						Income Statement						Balance Sheet
Account Name		Debit			Credit			Debit			Credit			Debit			Credit			Debit			Credit			Debit			Credit
Cash		78,200												78,200												78,200
Accounts receivable		13,000												13,000												13,000
Supplies		12,100									7,000			5,100												5,100
Prepaid advertising		20,400									3,400			17,000												17,000
Equipment		85,000												85,000												85,000
Accumulated depreciationEquipment											1,700						1,700												1,700
Accounts payable					13,000												13,000												13,000
Isabel Chavarria, Capital					109,000												109,000												109,000
Isabel Chavarria, Drawing		8,200												8,200												8,200
Fees income					115,500												115,500						115,500
Supplies expense								7,000						7,000						7,000
Advertising expense								3,400						3,400						3,400
Depreciation expenseEquipment								1,700						1,700						1,700
Salaries expense		17,800												17,800						17,800
Utilities expense		2,800												2,800						2,800
Totals		237,500			237,500			12,100			12,100			239,200			239,200			32,700			115,500			206,500			123,700
Net income																				82,800									82,800
																				115,500			115,500			206,500			206,500

Required:

1. Prepare an income statement.
2. Prepare a statement of owners equity. The owner made no additional investments during the month.
3. Prepare a balance sheet.

Analyze:

If the adjustment to Prepaid Advertising had been $6,800 instead of $3,400, what net income would have resulted?

Prepare an income statement. CHAVARRIA CORPORATION Income Statement Month Ended December 31, 20X1 Revenue Expenses Total expenses CHAVARRIA CORPORATION Balance Sheet December 31, 20X1 Assets Total Assets Liabilities and Owner's Equity Liabilities Owner's equity Total Liabilities and Owner's Equity Prepare a statement of owner's equity. The owner made no additional investments during the month. CHAVARRIA CORPORATION Statement of Owner's Equity Month Ended December 31, 20X1 Required 1 Required 2 Required 3 Analyze If the adjustment to Prepaid Advertising had been $6,800 instead of $3,400, what net income would have resulted? Net income