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if the adjusting entries had not been made for the month, by what amount would net income be overstated or understated?

Shayla Green owns Creative 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 $1,250 b. The prepaid advertising contract was signed on January 1, 20x1, and covers a four-month period c. Rent of $1750 expired during the month. . 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 of the adjusting entries had not been made for the month, by what amount would net income be overstated or understated? Am Complete the worksheet for the month CREATIVE DESIGNS Wonisht Admets Det Cerdas Adjusted Trial Belice Owl Credit Icon Sant Debat Deble Credit Canh Accable Supplies Prepaid Prepaid De 5 3560 12.500 35 600 21.00 25.200 1550 60300 than a Fincome 7.00 10.000 10 131.700 . 131.00 Reg 1 Req 2 Inc Stmt Req 2 Stmt of OE Reg 2 Bal Sheet Reg 3 Gen Journal Req 3 Ledgers Analyze Prepare an income statement. CREATIVE DESIGNS Income Statement Month Ended January 31, 20X1 Revenue Expenses Total expenses Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Inc Stmt Req 2 Stmt of OE Reg 2 Bal Sheet Req 3 Gen Journal Req 3 Ledgers Analyze Prepare a statement of owner's equity. No additional investments were made by the owner during the m CREATIVE DESIGNS Statement of Owner's Equity Month Ended January 31, 20X1 Complete this question by entering your answers in the tabs below. Reg 2 Inc Stmt Reg 2 Stmt of Reg 1 Req 2 Bal Sheet OE Req 3 Gen Journal Reg 3 Ledgers Analyze Prepare a balance sheet. CREATIVE DESIGNS Balance Sheet January 31, 20X1 Assets Total assets Liabilities and Owner's Equity Liabilities Owner's Equity Total Liabilities and Owner's Equity LO View transaction list Journal entry worksheet 1 2 3 4 > Prepare the adjusting entry for supplies. Note: Enter debits before credits General Journal Debit Credit Date Jan 31 20X1 Record entry Clear entry View general journal Reg 1 Req 2 Inc Stmt Req 2 Strt of OE Reg 2 Bal Sheet Reg 3 Gen Journal Req 3 Ledgers Analyze Post the adjusting entries. Supplies Date Debit Jan 1, 20X1 Jan 31, 20X1 Account No.121 Credit Balance Prepaid Advertising Date Debit Jan 01, 20X1 Jan 31, 20X1 Account No. 130 Credit Balance Account No. 131 Credit Balance Prepaid Rent Date Debit Jan. 1.20x1 Jan 31, 20X1 Accumulated Depreciation Equipment Date Debit Jan 31, 20X1 Account No. 142 Credit Balance Supplies Expanse Date Dub Jan 31, 20x1 Account No 517 Credit Balance Advertising Expense Debil Jan 31, 20X1 Date Account No. 519 Credit and Expense ACTO NO. 920 Balance De Depreciation Expense Equipment Dat Dube Jan 31, 20X1 Account No. 323 Balance Jan 31, 20x1 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Inc Simt Reg 2 Sumt of OE Reg 2 Bal Sheet Reg 3 Gen Journal Reg 3 Ledgers Analyze If the adjusting entries had not been made for the month, by what amount would net income be overstated or un Neno Amount

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