question 1 chapter 4

Required information [The following information applies to the questions displayed below.) 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. DAILY DRIVER, INCORPORATED Unadjusted Trial Balance At December 31 Account Name Debit Credit Notes Cash $ 1,650 This equals the bank balance. Supplies 180 Only windshield washer fluid that cost $30 remains at December 31. Prepaid Insurance 1,850 This amount was paid January 2 for car insurance from January 1 through December 31 of this year. Equipment 66,000 This is the car's purchase price. Accumulated Depreciation $ 3,960 The car will be two years old at the end of December. Salaries and Wages @ DDT has not yet paid or recorded $1,060 Payable of salary for December. Income Tax Payable DDI paid all its taxes from last year. Common Stock 38,000 DDI issued 7,600 shares at $5 each. Retained Earnings 6,080 This is the total accumulated earnings to January 1 of this year. Service Revenue 35,170 All revenue is received in cash when the service is given. Salaries and Wages 11,400 DDI's only employee receives a salary of Expense $1,060 for December. Supplies Expense 230 This is the cost of windshield washer fluid used to November 30. Depreciation Expense The car's benefits are being used up about $3,960 per year. Insurance Expense No car insurance has been paid for next year. Fuel Expense 1,900 All fuel is paid for in cash. Income Tax Expense DDI's tax rate is 24 of income before tax. Totals $ 83,210 $ 83,210 Journal entry worksheet Record the adjusting entry if DDI has not yet paid or recorded $1,060 of salary for December Note: Enter debits before credits. Transaction General Journal Dobit Credit Record entry Clear entry View general journal Journal entry worksheet