Closing Journal Entry of Daily Drive, Inc. from Textbook ExerciseE4-19, page 194-195.

Week6.C Quiz - Adjusted Trial Balance is your reference to complete this assignment.

E4-19 Preparing Adjusting Entries, an 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 In December\" 31 Accomtl: Name Debit Credit Notes lCash $ 1,030 This equals the bank balance. Supplies 50 Only windshield washer fluid that cost $30 remains at December 3]. This amount was paid January 2 for car insurance from January I through Prepaid Insurance 1,200 December 3] ofthis year. Equipment 40,000 This is the car's purchase price. Accumulated Depreciation $ 2,400 The car will be two years old at the end of December. Salaries and Wages Payable 0 DDI has not yet paid or recorded $800 of salary for December. Income Tax Payable 0 DDI paid all its taxes from last year. lCommon Stock 25,0110 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 19,520 All revenue is received in cash when the service is given. Salaries and Wages Expense 8,300 DDI's only employee receives a monthly salary of $800 to December 3]. Supplies Expense 100 This is the cost of windshield washer fluid used to November 30. Depreciation Expense 0 The car's benefits are being used up about $2 400 per year. Insurance Expense 0 No car insurance has been paid for next year. Fuel Expense 1,250 All fuel is paid for in cash. Income Tax Expense 0 DDI's tax rate is 20 percent of income before tax. Totals $ 52,400 $ 52,400