Critical Thinking Problem 5.2 Worksheet and Financial Statements 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 111 Accounts Receivable 121 Supplies 131 Prepaid Insurance 141 Equipment 142 Accu. Depr.-Equip 202 Accounts Payable 301 Roger Patterson, Capital 80,000 523 Telephone Expense 302 Roger Patterson, Drawing S36,950 401 Fees Income $61,850 3,000 6,800 511 Advertising Expense 4,300 514 Depr Expense-Equip 30, 000 517 Insurance Expense 48,000 518 Rent Expense 5000 13,400 0 519 Salaries Expense 12,000 520 Supplies Expense 700 1,700 4,000 524 Utilities Expense Adjustments: a. Supplies used during the month amounted to $2,100. b. The amount in the Prepaid Insurance account represents a payment made on January 1, 2019, for six months of insurance coverage c. 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 depreclation. Requirec 3. Complete the worksheet. 4. Prepare an income statement, Statement of owner's 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