Based on the given information from Textbook Exercise E4-19 - Daily Driver, Inc., pages 194-195, prepare...

  

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Based on the given information from Textbook Exercise E4-19 - Daily Driver, Inc., pages 194-195, prepare T- Accounts. Post the following to T-Accounts in the attached spreadsheet: balances of the accounts from the Unadjusted Trial Balance of Daily Drive Inc. at December 31 to T-Accounts. adjusting journal entries prepared in Week 6 Assignment A. Preparing Adjusting Journal Entries . LO 4-1,4-2,4-3,4-4 Account Name Cash Supplies DAILY DRIVER, INC. Unated Trial Balance At December 31 Prepaid Insurance Equipment Accumulated Depreciation E4-19 Preparing Adjusting Entries, an Adjusted Trial Balance, and Financial Statements Daily Driver, Inc. (DDI, operates a driving service through a popular ride-sharing app. DDT has prepared a list of unadjusted account balances at its December 31 year end. You have reviewed the balances and made notes shown in the right column Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Insurance Expense Fael Expense Income Tax Expense Touls Debit $ 1,000 50 1.200 40,000 K800 100 0 D 1,250 0 $52,400 Credit $ 2,400 0 0 25.000 5,430 19,570 $52,400 CHAPTER 4 Fial Statements, and Notes This equals the bank balance. Only windshield washer fluid that cost 530 remains at December 31. This was paid January 2 for car insurance from January 1 through December 31 of this year. This is the car's purchase price. The car will be two years old at the end of December DDI has not yet paid or recorded 5800 of salary for December DDI paid all its taxes from last year DDI issued 5,000 shares at 55 cach This is the total accumolated earnings to January 1 of this year All revenue is received in cash when the service is gives DDI's only employee receives a monthly salary of $800 so December 31, This is the cost of windshield washer fluid ned to November 30. The car's benefits are being used up about $2.400 per year. No car insurance has been paid for next year. All fuel is paid for in cash DDI's tax rate is 20 percent of income before tax Required: 1. Use the notes to determine and record adjusting entries needed on December 31 for (a) sup plies used up. (b) insurance costs, (c) using up the car's benefits, 6) salaries not yet accounted for, and (e) income taxes for the year. 2. Post the adjusting entries from requirement 1 to T-accounts to determine new adjusted balances, and prepare an adjusted trial balance. (If you are completing this exercise using the general ledger tool in Connect, this requirement will be completed automatically for you.) 3. Using the adjusted balances from requirement 2, prepare an income statement, statement of retained earnings, and classified balance sheet 195 Based on the given information from Textbook Exercise E4-19 - Daily Driver, Inc., pages 194-195, prepare T- Accounts. Post the following to T-Accounts in the attached spreadsheet: balances of the accounts from the Unadjusted Trial Balance of Daily Drive Inc. at December 31 to T-Accounts. adjusting journal entries prepared in Week 6 Assignment A. Preparing Adjusting Journal Entries . LO 4-1,4-2,4-3,4-4 Account Name Cash Supplies DAILY DRIVER, INC. Unated Trial Balance At December 31 Prepaid Insurance Equipment Accumulated Depreciation E4-19 Preparing Adjusting Entries, an Adjusted Trial Balance, and Financial Statements Daily Driver, Inc. (DDI, operates a driving service through a popular ride-sharing app. DDT has prepared a list of unadjusted account balances at its December 31 year end. You have reviewed the balances and made notes shown in the right column Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Insurance Expense Fael Expense Income Tax Expense Touls Debit $ 1,000 50 1.200 40,000 K800 100 0 D 1,250 0 $52,400 Credit $ 2,400 0 0 25.000 5,430 19,570 $52,400 CHAPTER 4 Fial Statements, and Notes This equals the bank balance. Only windshield washer fluid that cost 530 remains at December 31. This was paid January 2 for car insurance from January 1 through December 31 of this year. This is the car's purchase price. The car will be two years old at the end of December DDI has not yet paid or recorded 5800 of salary for December DDI paid all its taxes from last year DDI issued 5,000 shares at 55 cach This is the total accumolated earnings to January 1 of this year All revenue is received in cash when the service is gives DDI's only employee receives a monthly salary of $800 so December 31, This is the cost of windshield washer fluid ned to November 30. The car's benefits are being used up about $2.400 per year. No car insurance has been paid for next year. All fuel is paid for in cash DDI's tax rate is 20 percent of income before tax Required: 1. Use the notes to determine and record adjusting entries needed on December 31 for (a) sup plies used up. (b) insurance costs, (c) using up the car's benefits, 6) salaries not yet accounted for, and (e) income taxes for the year. 2. Post the adjusting entries from requirement 1 to T-accounts to determine new adjusted balances, and prepare an adjusted trial balance. (If you are completing this exercise using the general ledger tool in Connect, this requirement will be completed automatically for you.) 3. Using the adjusted balances from requirement 2, prepare an income statement, statement of retained earnings, and classified balance sheet 195

Answer rating: 100% (QA)

Answer 1 Adjusting Entries ... View the full answer