Req 2 Inc Req 2 Stmt of Req 2 Bal Req 3 Gen Reg 1 Stmt DE Sheet Journal Req 3 Ledgers Analyze Complete the worksheet for the month. CREATIVE DESIGNS Worksheet Month Ended January 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 $ 34,900 Accounts receivable 12,000 Supplies 6,550 Prepaid advertising 6,000 Prepaid rent 15,600 Equipment 40,800 Accumulated depreciation-Equipment Accounts payable 14,950 Shayla Green, Capital 59,400 Shayla Green, Drawing 6,400 Fees income 58,100 Advertising expense Depreciation expense-Equipment Rent expense Salaries expense 9.100 Supplies expense Utilities expense 1,100 Sub-totals $ 132,450 $ 132,450 $ 0 $ 0 $ o $ O $ o S o $ 0 $ Totals $ O $ O $ 0 $ 0Req 2 Inc Req 2 Stmt of Req 2 Bal Req 3 Gen Req 1 Stmt OE Sheet Journal Req Prepare an income statement. CREATIVE DESIGNS Income Statement Month Ended January 31, 20X1 Revenue Expenses Total expenses 0 $ 0Req 1 Req 2 Inc Req 2 Stmt of Req 2 Bal Req 3 Gen A Journal Req 3 Ledgers Stmt OE Sheet Prepare a statement of owner's equity. No additional investments were made by the owner CREATIVE DESIGNS Statement of Owner's Equity Month Ended January 31, 20X1 0Req 2 Inc Req 2 Stmt of Req 2 Bal Req 3 Gen Req 1 Stmt OE Sheet Journal Req 3 Ledger Prepare a balance sheet. CREATIVE DESIGNS Balance Sheet January 31, 20X1 Assets Total assets $ 0 Liabilities and Owner's Equity Liabilities Owner's Equity Total Liabilities and Owner's Equity 0View transaction list Journal entry worksheet 2 3 4 > Prepare the adjusting entry for supplies. Note: Enter debits before credits. Date General Journal Debit Credit Jan. 31, 20X1Post the adjusting entries. Supplies Account No.121 Prepaid Advertising Account No. 130 Date Debit Credit Balance Date Debit Credit Balance Jan. 1, 20X1 Jan. 01, 20X1 Jan. 31, 20X1 Jan. 31, 20X1 Prepaid Rent Account No.131 Accumulated Depreciation-Equipment Account No. 142 Date Debit Credit Balance Date Debit Credit Balance Jan. 1, 20X1 Jan. 31, 20X1 Jan. 31, 20X1 Supplies Expense Account No.517 Advertising Expense Account No. 519 Date Debit Credit Balance Date Debit Credit Balance Jan. 31, 20X1 Jan. 31, 20X1 Rent Expense Account No. 520 Depreciation Expense-Equipment Account No. 523 Date Debit Credit Balance Date Debit Credit Balance Jan. 31, 20X1 Jan. 31, 20X1 Req 2 Inc Req 2 Stmt of Req 2 Bal Req 3 Gen Req 1 Stmt OE Sheet Journal Req 3 Ledgers Analyze If the adjusting entries had not been made for the month, by what amount would net income be overstated or understated? Net income Amount Shayla Green owns Creative Designs. The trial balance of the rm for January 31. 20X'l . the rst month of operations. is shown below. 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, 20x1, is $800. b. The prepaid advertising contract was signed on January 1, 20X1. and covers a four-month period. c. Rent of$1 .300 expired during the month. d. Depreciation is computed using the straight-line method. The equipment has an estimated useful life of 10 years with no salvage value. Required: 1. Complete the worksheet for the month. 2. Prepare an income statement, statement of owner's equity, and balance sheet. No additional investments were made by the owner during the month. 3. Journalize and post the adjusting entries. Analyze lfthe adjusting entries had not been made for the month, by what amount would net income be overstated or understated