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 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. $3,960 The car will be two years old at the end of December. DDI has not yet paid or recorded $1,060 of salary for December. e DDI paid all its taxes from last year. 38,000 DDI issued 7,600 shares at $5 each. 6,080 This is the total accumulated earnings to January 1 of this year. Account Name Debit Cash Supplies $1,650 180 Prepaid Insurance 1,850 Equipment 66,000 Accumulated Depreciation Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages 11,400 Expense Supplies Expense Depreciation Expense Insurance Expense 0 Fuel Expense Income Tax Expense 1,900 0 Totals $83.210 $83,210 230 35,170 All revenue is received in cash when the service is given. DDI's only employee receives a salary of $1,060 for December. This is the cost of windshield washer fluid used to November 30. The car's benefits are being used up about $3,960 per year. No car insurance has been paid for next year. All fuel is paid for in cash. DDI's tax rate is 20% of income before tax. Requirement General Journal General Trial Balance Ledger Income Statement Statement of Retained Earnings Balance Sheet Prepare the adjusting journal entries for the year ended December 31. (If no entry is required for a transaction/event, select " Entry Required" in the first account field.) View transaction list View journal entry worksheet No Date: General Journal 1 Dec 31 Supplies Expense Supplies 2 Dec 31 Insurance Expense Debit Credit 150 150 Use the drop-down to select the accounts properly included on the income statement. The unadjusted and adjusted balance will appear for each account based on your selection. Adjusted DAILY DRIVER, INCORPORATED Income Statement For the Year Ended December 31 Revenues $ 0 0 Expenses Supplies Expense 380 Salaries and Wages Expense 11,400 Depreciation Expense 0 Insurance Expense 0 Fuel Expense 1,900 Accumulated Depreciation 3,960 Common Stock 38000 Total Expenses 55,640 Net Income $ (55,640) Prepare the statement of retained earnings for the year ended December 31. You will need to determine and enter the accounts and balances to prepare the Statement of Retained Earnings. Adjusted DAILY DRIVER, INCORPORATED Statement of Retained Earnings For the Year Ended December 31 Beginning Balance Add: Net Income Less: Dividends Ending Balance (55,640) + (55,640) Use the dropdowns to select the accounts properly included on the classified balance sheet. The unadjusted and adjusted balances will appear for each account, based on your selection. Adjusted Assets DAILY DRIVER, INCORPORATED Balance Sheet December 31 Liabilities $ 0 + 0 0 0 0 0 $ 0 0 0 (55,640)