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50 4 points E4-19 (Algo) Preparing Adjusting Entries, an Adjusted Trial Balance, and Financial Statements [LO 4-1, LO 4-2, LO 4-3, LO 4-4] (General
50 4 points E4-19 (Algo) Preparing Adjusting Entries, an Adjusted Trial Balance, and Financial Statements [LO 4-1, LO 4-2, LO 4-3, LO 4-4] (General Ledger) 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 Account Name Debit Cash eBook Supplies $1,600 170 Prepaid Insurance 1,800 References Equipment Accumulated Depreciation Salaries and Wages Payable 64,000 At December 31 Credit 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 1 through December 31 of this year. This is the car's purchase price. $3,840 The car will be two years old at the end of December. 0 DDI has not yet paid or recorded $1,040 of salary for December. 0 DDI paid all its taxes from last year. 37,000 DDI issued 7,400 shares at $5 each. 6,030 This is the total accumulated earnings to January 1 of this year. 33,970 All revenue is received in cash when the service is given. DDI's only employee receives a salary of $1,040 for December. This is the cost of windshield washer Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense 11,200 Supplies Expense 220 Depreciation Expense Insurance Expense 0 No car insurance has been paid for next year. Fuel Expense 1,850 Income Tax Expense 0 Totals $80,840 $80,840 All fuel is paid for in cash. DDI's tax rate is 20% of income before tax. 0 fluid used to November 30. The car's benefits are being used up about $3,840 per year.
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