CP4-4 (Algo) Identifying and Preparing Adjusting Journal Entries [LO 4-1, LO 4-2, LO 4-3, LO 4-6] [The following information applies to the questions displayed below.) Golf Academy, Incorporated, provides private golf lessons. Its unadjusted trial balance at December 31, 2021, follows, along with information about selected accounts. Account Names Cash Supplies Deferred Revenue Salaries and Wages Payable Debit $ 31,800 Credit 580 Further Information As reported on December 31 bank statement. Based on count, only $190 of supplies still exist. of this amount, $1,900 was received for $ 2,390 December lessons and $490 for January lessons. 0 0 Employees were paid $2,100 for 10 days of work through December 28. They have not yet been paid for work on December 29 and 30. The company has paid last year's income tax but not this year's tax. The company has not paid the $125 of 0 interest owed on its notes payable for the current period.. 1,000 2,900 Income Tax Payable Interest Payable Notes Payable (long-term) 15,000 Common Stock Retained Earnings Service Revenue Salaries and Wages Expense 36,000 Supplies Expense 2,300 Interest Expense Income Tax Expense Totals 0 This one-year note was taken out this year on December 1. This amount was contributed for common stock in prior years. This is the balance reported at the end of last year. Most customers pay cash for lessons each 49,390 time they are provided, but some customers pay in advance. $ 70,680 $ 70,680 Employees worked through December 30 but did not work on December 31. This is the cost of supplies used through November 30. The company has not paid the $125 of interest owed on its notes payable for the current period. The company has an average tax rate of 20%. CP4-4 (Algo) Part 1 Required: 1. Prepare the (preliminary) unadjusted net income statement for the year ended December 31, 2021. GOLF ACADEMY, INCORPORATED Unadjusted Income Statement 0 CP4-4 (Algo) Part 2 2. Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment for each pair. Adjustment Balance sheet account Related income statement account Amount (1) JEONE (2) (3) (4) (5) 3. Prepare the adjusting journal entries that are required at December 31, 2021. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.) View transaction list Journal entry worksheet 2 Record the adjusting entry for supplies. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal