3 01:34:09 The Forever Fitness Company began operations on December 1, 2021. The unadjusted trial balance of the Forever Fitness Company as of December 31, 2021 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the Forever Fitness Company found in chapter 3. 1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2021. Review the unadjusted balance in Prepaid insurance, and prepare the necessary adjusting entry, if any. 2) Based on a physical count, supplies on hand total $5,100. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any. 3) The equipment is expected to have a 4-year useful life, and be worth about $9,000 at the end of four years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry, if any. 4) On December 26, the client paid a $10,800 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any. 5) Forever Fitness's sole employee earns $190 per day for a five-day workweek beginning on Monday and ending on Friday. The employee was last paid on Friday, December 26. Review the unadjusted balance in Salaries payable, and prepare the necessary adjusting entry, if any. 6) In the second week of December, Forever Fitness agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $4,620. The terms of the initial agreement call for Forever Fitness to provide services from December 12, 2021, through January 10, 2022, or 30 days of service. The club agrees to pay Forever Fitness $4,620 on January 10, 2022, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any. Prepare the required adjusting and closing entries for the Forever Fitness Company. Requirement General Journal General Ledger Trial Balance Income Statement S: Owner Equity Balance Sheet Work Sheet One of the benefits of a work sheet is that it links accounts and adjustments to their impacts in financial statements. Complete the work sheet below for the Forever Fitness Company. Unadjusted Forever Fitness Company Work Sheet For the Year Ended December 31, 2021 Unadjusted Trial Balance Adjustments Adjusted Trial Income Statement St. of Owner's Equity Balance & Balance Sheet Account Dr. Cr. Dr. Cr. Cash 20,965 Dr. 20,965 Cr. Dr. Cr. Dr. Cr. Accounts receivable 0 Supplies 6,800 6,800 Prepaid insurance 4,200 4,200 Equipment 40,200 40,200 Accumulated depreciation 0 Accounts payable 14,200 14,200 Salaries payable Unearned consulting revenue 10,000 10,000 J. Carey, Capital 44,000 44,000 J. Carey, Withdrawals 1,000 1,000 Consulting revenue 9,400 9,400 Rental revenue 800 Depreciation expense 600 Salaries expense 3,230 Insurance expense Rent expense 2,250 3,230 0 2,250 Supples expense 0 Us expan 355 355 79,000 79,000 79,000 79,000 0 0 0 Totals Net income Totals < Balance Sheet 0 0 0 Work Sheet >