Preparing financial statements from the worksheet. The completed worksheet for Chavarria Corporation as of December 31, 20X1, after the company had completed the first month of operation, appears below. INSTRUCTIONS 1. Prepare an income statement. 2. Prepare a statement of owner's equity. The owner made no additional imvestments during the month. 3. Prepare a balance sheet (use the report form). Analyze: If the adjustment to Prepaid Advertising had been $6,800 instead of $3,400. what net income would have resulted? Preparing a worksheet and financial statements, journalizing adjusting entries, and posting to ledger accounts. Shayla Green owns Creative Designs. The trial balance of the firm for January 31, 20X1, the fint month of operations, is shown below. INSTRUCTIONS 1. Complete the worksheet for the month. 2. Prepare an income statement, statement of owner's cquity. and balance sheet. No additional investments were made by the owner during the month. 3. Journalize and post the adjusting entries. Use 3 for the journal page number. Use the following account numbers: Supplies, 121; Prepaid Advertising, 130; Prepaid Rent, 131: Accunalated Depreciation-Equipment, 142; Supplies Expense, 517; Advertising Expense, 519; Rent Expense, 520; Depreciation Expense-Equipment, 523. End-of-the-month adjustments must account for the following items: a. Supplies were purchased on January 1, 20X1; inventory of supplies on January 31,201, is $3,200. b. The prepaid advertising contract was signed on January 1,20XI, and covers a four-month period. Preparing financial statements from the worksheet. The completed worksheet for Chavarria Corporation as of December 31, 20X1, after the company had completed the first month of operation, appears below. INSTRUCTIONS 1. Prepare an income statement. 2. Prepare a statement of owner's equity. The owner made no additional imvestments during the month. 3. Prepare a balance sheet (use the report form). Analyze: If the adjustment to Prepaid Advertising had been $6,800 instead of $3,400. what net income would have resulted? Preparing a worksheet and financial statements, journalizing adjusting entries, and posting to ledger accounts. Shayla Green owns Creative Designs. The trial balance of the firm for January 31, 20X1, the fint month of operations, is shown below. INSTRUCTIONS 1. Complete the worksheet for the month. 2. Prepare an income statement, statement of owner's cquity. and balance sheet. No additional investments were made by the owner during the month. 3. Journalize and post the adjusting entries. Use 3 for the journal page number. Use the following account numbers: Supplies, 121; Prepaid Advertising, 130; Prepaid Rent, 131: Accunalated Depreciation-Equipment, 142; Supplies Expense, 517; Advertising Expense, 519; Rent Expense, 520; Depreciation Expense-Equipment, 523. End-of-the-month adjustments must account for the following items: a. Supplies were purchased on January 1, 20X1; inventory of supplies on January 31,201, is $3,200. b. The prepaid advertising contract was signed on January 1,20XI, and covers a four-month period