Daily Driver, Incorporated (DDI), operates a driving service through a popular ride-sharing app. DDI has prepared...

  

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Daily Driver, Incorporated (DDI), operates a driving service through a popular ride-sharing app. DDI 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. Account Name Cash Supplies Prepaid Insurance. Equipment Accumulated Depreciation Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Insurance Expense Fuel Expense Income Tax Expense Totals DAILY DRIVER, INCORPORATED Unadjusted Trial Balance At December 31 Credit Notes This equals the bank balance. Only windshield washer fluid that cost $30 remains at December 31. Debit $ 1,250 100 1,450 50,000 9,800 150 0 0 1,500 0 $3,000 0 0 30,000 5,680 25,570 $ 64,250 $ 64,250 This amount 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 $900 of salary for December. DDI paid all its taxes from last year. DDI issued 6,000 shares at $5 each. This is the total accumulated earnings to January 1 of this year. All revenue is received in cash when the service is given. DDI's only employee receives a salary of $900 for December. This is the cost of windshield washer fluid used to November 30. The car's benefits are being used up about $3,000 per year. No car insurance has been paid for next year. All fuel is paid for in cash. DDI's tax rate is 20% of income before tax. Prepare a classified balance sheet for the year ended December 31. (Amounts to be deducted should be indicated by a minus sign.) DAILY DRIVER, INCORPORATED Balance Sheet Daily Driver, Incorporated (DDI), operates a driving service through a popular ride-sharing app. DDI 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. Account Name Cash Supplies Prepaid Insurance. Equipment Accumulated Depreciation Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Depreciation Expense Insurance Expense Fuel Expense Income Tax Expense Totals DAILY DRIVER, INCORPORATED Unadjusted Trial Balance At December 31 Credit Notes This equals the bank balance. Only windshield washer fluid that cost $30 remains at December 31. Debit $ 1,250 100 1,450 50,000 9,800 150 0 0 1,500 0 $3,000 0 0 30,000 5,680 25,570 $ 64,250 $ 64,250 This amount 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 $900 of salary for December. DDI paid all its taxes from last year. DDI issued 6,000 shares at $5 each. This is the total accumulated earnings to January 1 of this year. All revenue is received in cash when the service is given. DDI's only employee receives a salary of $900 for December. This is the cost of windshield washer fluid used to November 30. The car's benefits are being used up about $3,000 per year. No car insurance has been paid for next year. All fuel is paid for in cash. DDI's tax rate is 20% of income before tax. Prepare a classified balance sheet for the year ended December 31. (Amounts to be deducted should be indicated by a minus sign.) DAILY DRIVER, INCORPORATED Balance Sheet

Answer rating: 100% (QA)

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