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
Account Name	Debit	Credit	Notes
Cash	$1,400		This equals the bank balance.
Supplies	130		Only windshield washer fluid that cost $30 remains at December 31.
Prepaid Insurance	1,600		This amount was paid January 2 for car insurance from January 1 through December 31 of this year.
Equipment	56,000		This is the cars purchase price.
Accumulated Depreciation		$3,360	The car will be two years old at the end of December.
Salaries and Wages Payable		0	DDI has not yet paid or recorded $960 of salary for December.
Income Tax Payable		0	DDI paid all its taxes from last year.
Common Stock		33,000	DDI issued 6,600 shares at $5 each.
Retained Earnings		5,830	This is the total accumulated earnings to January 1 of this year.
Service Revenue		29,170	All revenue is received in cash when the service is given.
Salaries and Wages Expense	10,400		DDIs only employee receives a salary of $960 for December.
Supplies Expense	180		This is the cost of windshield washer fluid used to November 30.
Depreciation Expense	0		The cars benefits are being used up about $3,360 per year.
Insurance Expense	0		No car insurance has been paid for next year.
Fuel Expense	1,650		All fuel is paid for in cash.
Income Tax Expense	0		DDIs tax rate is 20% of income before tax.
Totals	$71,360	$71,360

Prepare the adjusting journal entries for the year ended December 31.

1. I completed this one by myself.

2. I completed this one by myself.

3. Record the adjusting entry if the cars benefits are being used up about $3,360 per year.

4. Record the adjusting entry if DDI has not yet paid or recorded $960 of salary for December.

5. Record the adjusting entry for income tax if DDI's tax rate is 20% of income before tax.