Problem 5.4A (Algo) Preparing a worksheet and financial statements, journalizing adjusting entries, and posting to ledger accounts. LO 5-2, 5-3, 5-4, 5-5 Angela Mosley owns Innovative Designs. The trial balance of the firm for January 31, 20X1, the first 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 $600. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1,100 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 If the adjusting entries had not been made for the month, by what amount would net income be overstated or understated? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Income Chatr Req 2 Statement of Req 2 Balance Req 3 General Req 3 Ledgers Analyze
Problem 5.4A (Algo) Preparing a worksheet and financial statements, journalizing adjusting entries, and posting to ledger accounts. LO 5-2, 5-3, 5-4, 5-5 Angela Mosley owns Innovative Designs. The trial balance of the firm for January 31, 20X1, the first 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 $600. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1,100 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 If the adjusting entries had not been made for the month, by what amount would net income be overstated or understated? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Income Chatr Req 2 Statement of Req 2 Balance Req 3 General Req 3 Ledgers Analyze
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter4: Adjusting Entries And The Work Sheet
Section: Chapter Questions
Problem 4PB: The trial balance for Harris Pitch and Putt on June 30 is as follows: Data for month-end adjustments...
Related questions
Question
I do not know which part I did wrong. Could you help me how to complete it correctly, please?
![Complete the worksheet for the month.
Account Name
Cash
Accounts receivable
Supplies
Prepaid advertising
Prepaid rent
Equipment
Accumulated depreciation-Equipment
Accounts payable
Angela Mosley, Capital
Angela Mosley, Drawing
Fees income
Advertising expense
Depreciation expense-Equipment
Rent expense
Salaries expense
Supplies expense
Utilities expense
Sub-totals
Net income
Totals
$
$
Trial Balance
Debit
34,500
11,600
5,750
4,400
13,200
45,600
6,000
8,700
Credit
14,550
59,000
57,100
900
130,650 $ 130,650
$
INNOVATIVE DESIGNS
Worksheet
Month Ended January 31, 20X1
Adjustments
Debit
0 $
Credit
5,150
1,100
1,100
7,350
$
$
Adjusted Trial Balance
Debit
Credit
34,500
11,600
600
3,300
12,100
45,600
6,000
8,700
900
123,300
$
14,550
59,000
57,100
130,650 $
$
Income Statement
Debit
8,700
900
9,600
47,500
57,100 $
$
Credit
57,100
57,100
$
$
57,100 $
Balance Sheet
Debit
34,500
11,600
600
3,300
12,100
45,600
6,000
113,700 $
113,700
$
Credit
14,55
59,00
73,55
57,10
130,65](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc3acae65-05d5-4940-8762-2c9a874e450a%2Fe3d7cec4-14d7-473d-94e1-2623f06f5b0f%2Fnfxcq2c_processed.png&w=3840&q=75)
Transcribed Image Text:Complete the worksheet for the month.
Account Name
Cash
Accounts receivable
Supplies
Prepaid advertising
Prepaid rent
Equipment
Accumulated depreciation-Equipment
Accounts payable
Angela Mosley, Capital
Angela Mosley, Drawing
Fees income
Advertising expense
Depreciation expense-Equipment
Rent expense
Salaries expense
Supplies expense
Utilities expense
Sub-totals
Net income
Totals
$
$
Trial Balance
Debit
34,500
11,600
5,750
4,400
13,200
45,600
6,000
8,700
Credit
14,550
59,000
57,100
900
130,650 $ 130,650
$
INNOVATIVE DESIGNS
Worksheet
Month Ended January 31, 20X1
Adjustments
Debit
0 $
Credit
5,150
1,100
1,100
7,350
$
$
Adjusted Trial Balance
Debit
Credit
34,500
11,600
600
3,300
12,100
45,600
6,000
8,700
900
123,300
$
14,550
59,000
57,100
130,650 $
$
Income Statement
Debit
8,700
900
9,600
47,500
57,100 $
$
Credit
57,100
57,100
$
$
57,100 $
Balance Sheet
Debit
34,500
11,600
600
3,300
12,100
45,600
6,000
113,700 $
113,700
$
Credit
14,55
59,00
73,55
57,10
130,65
![Problem 5.4A (Algo) Preparing a worksheet and financial statements, journalizing adjusting entries, and
posting to ledger accounts. LO 5-2, 5-3, 5-4, 5-5
Angela Mosley owns Innovative Designs. The trial balance of the firm for January 31, 20X1, the first 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 $600.
b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period.
c. Rent of $1,100 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
If the adjusting entries had not been made for the month, by what amount would net income be overstated or understated?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 Income
Statement
Req 2
Statement of
Owner Equity
Req 2 Balance Req 3 General
Sheet
Journal
Req 3 Ledgers Analyze](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc3acae65-05d5-4940-8762-2c9a874e450a%2Fe3d7cec4-14d7-473d-94e1-2623f06f5b0f%2F2is9m2_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 5.4A (Algo) Preparing a worksheet and financial statements, journalizing adjusting entries, and
posting to ledger accounts. LO 5-2, 5-3, 5-4, 5-5
Angela Mosley owns Innovative Designs. The trial balance of the firm for January 31, 20X1, the first 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 $600.
b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period.
c. Rent of $1,100 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
If the adjusting entries had not been made for the month, by what amount would net income be overstated or understated?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 Income
Statement
Req 2
Statement of
Owner Equity
Req 2 Balance Req 3 General
Sheet
Journal
Req 3 Ledgers Analyze
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning