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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, (d) 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. F4.90 Prenarine Adiustinn Entries an Adiusted Trial Ralance and Financial Statemank

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, (d) 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. F4.90 Prenarine Adiustinn Entries an Adiusted Trial Ralance and Financial Statemank

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 16E: Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and...
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Depreciation Expense Insurance Expense 3. Fuel Expense Income Tax Expense Totals 0 0 1.250 0 $ 52,400 $ 52,400 The car's benefits are being used up about $2 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 Required: 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, (d) salaries not yet accounted for, and (e) income taxes for the year. 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.) Using the adjusted balances from requirement 2, prepare an income statement, statement of retained earnings, and classified balance sheet. F4-20 Prenarina Adiustion Entries an Adiusted Trial Balance and Financial Statemank M 31
Transcribed Image Text:Depreciation Expense Insurance Expense 3. Fuel Expense Income Tax Expense Totals 0 0 1.250 0 $ 52,400 $ 52,400 The car's benefits are being used up about $2 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 Required: 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, (d) salaries not yet accounted for, and (e) income taxes for the year. 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.) Using the adjusted balances from requirement 2, prepare an income statement, statement of retained earnings, and classified balance sheet. F4-20 Prenarina Adiustion Entries an Adiusted Trial Balance and Financial Statemank M 31
Account Name Cash Supplies DAILY DRIVER, INC. Unadjusted Trial Balance At December 31 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 Debit $ 1,000 50 1,200 40.000 8,800 100 0 1.250 0 $ 52,400 Credit 5 $ 2.400 10 0 25.000 5.430 19.570 $52.400 Notes This equals the bank balance. Only windshield washer fluid that cost $30 remains at December 31. This amount was paid January 2 for car insurance from January I 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 $800 of salary for December. DDI paid all its taxes from last year. DDI issued 5,000 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 monthly salary of $800 to December 31. This is the cost of windshield washer fluid used 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. 5 Oct 23:
Transcribed Image Text:Account Name Cash Supplies DAILY DRIVER, INC. Unadjusted Trial Balance At December 31 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 Debit $ 1,000 50 1,200 40.000 8,800 100 0 1.250 0 $ 52,400 Credit 5 $ 2.400 10 0 25.000 5.430 19.570 $52.400 Notes This equals the bank balance. Only windshield washer fluid that cost $30 remains at December 31. This amount was paid January 2 for car insurance from January I 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 $800 of salary for December. DDI paid all its taxes from last year. DDI issued 5,000 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 monthly salary of $800 to December 31. This is the cost of windshield washer fluid used 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. 5 Oct 23:
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