ah Adjusted Trial Balance, and Financial Statements Daily Driver, Inc. (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, INC. Unadjusted Trial Balance At December 31 CHAPTER 4 Adjustments. Financial Statements, and Financial Results Account Name Cash Supplies Debit $ 1,000 Credit Notes 50 Prepaid Insurance Equipment Accumulated Depreciation Salaries and Wages Payable 1.200 40.000 S 2400 0 DDI has not yet paid or recorded $800 of salary for December. 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. The car will be two years old at the end of December. Income Tax Payable DDI paid all its taxes from last year. Common Stock 25.000 DDI issued 5.000 shares at $5 each. Retained Earnings 5.430 This is the total accumulated earnings to January I of this year. Service Revenue 19.570 All revenue is received in cash when the service is given. Salaries and Wages Expense 8.800 Supplies Expense 100 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 Depreciation Expense ED The car's benefits are being used up about $2,400 per year Insurance Expense 0 Fuel Expense 1.250 Income Tax Expense 0 No car insurance has been paid for next year All fuel is paid for in cash. DDI tax rate is 20 percent of income before tax Totals $52,400 $ 52.400 Required: S. 2. 3. (2) sup Use the notes to determine and record adjusting entries needed on December plies used up, () insurance costs. (c) using up the car's benefits, (of) salaries et 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 exerci the general ledger tool in Connect, this requirement will be completed automatically for you.) Using the adjusted balances from requirement 2. prepare an income statencor s retained earnings, and classified balance sheet.