The completed worksheet for Vasquez Corporation as of December 31, 2016, after the company had completed the first month of operation, appears across the tops of pages 146€“147.

INSTRUCTIONS
1. Prepare an income statement.
2. Prepare a statement of owner€™s equity. The owner made no additional investments 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?

Judge Creative Designs
Worksheet (Partial)
Month Ended January 31, 2016

Analyze: If the adjusting entries had not been made for the month, would net income be overstated orunderstated?

Transcribed Image Text:

Vasquez Corporation Worksheet Month Ended December 31, 2016 TRIAL BALANCE ADJUSTMENTS ACCOUNT NAME DEBIT CREDIT DEEIT CAEDIT 78 20 0 0do 13 000 00 12 1 0 0 00 204 0 0 00 85 000 00 Cash Accounts Receivable Supplies Prepaid Advertising Equipment Accumulated Depreciation- Equipment Accounts Payable Rosa Vasquez, Capital Rosa Vasquez, Drowing Fees Income Advertising Expense Depreciation Expense Equipment Salanes Expense Supplies Expense Ubilities Expense Totals Net Income (a) 7101010100 b)34 00 00 (c) 17 00 00 13 000 00 1090 0 00 8 200 00 115151000이 (b) 3 40 o 0 (c) 11 기01010 17 800 o0 (a) 기0101010 2 800 00 237 5|0|0| 0011 23715|0|0|001 121|0|0| 0메 12|1|0|0| 00 TRIAL BALANCE ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET ACCOUNT NAME DEEIT 36 5 00 00 13160|0| 00 DEBT 82 00 00 13 000 00 CREDIT 78 2 0 0 00 3 000 00 17 000 00 Accounts Receivoble aid Advertisin 12 400 00 25 20 000 33610000 85 000 00 85 00 0 00 171010:00 1300 0 00 1090 00 00 Accumulated Depreciation-Equipment 13 000 1655 0 00 61 000 00 820000 109 00 0 115 50o 74 10 0 003 400 00 1700 00 Depreciation Expense Equipment Salaries Expense 107 0 00 2800 00 239 2 00 00 123 700 o0 82 80 0 00 206 5 0 0 00 239 2 00 206 5 0 0 900 00 151 | δ| 50 00| 151 6 5 0 00 115 50 15 50000 206 50000