Question
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
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 $ 1,750 This equals the bank balance. Supplies 200 Only windshield washer fluid that cost $30 remains at December 31. Prepaid Insurance 1,950 This amount was paid January 2 for car insurance from January 1 through December 31 of this year. Equipment 70,000 This is the cars purchase price. Accumulated Depreciation $ 4,200 The car will be two years old at the end of December. Salaries and Wages.
1. Record the adjusting entry for supplies if only windshield washer fluid that cost $30 remains at December 31.
2. Record the adjusting entry if $1,950 was paid on January 2 for car insurance from January 1 through December 31 of this year.
3. Record the adjusting entry if the cars benefits are being used up about $4,200 per year.
4. Record the adjusting entry if DDI has not yet paid or recorded $1,100 of salary for December.
5.Record the adjusting entry for income tax if DDIs tax rate is 20% of income before tax.
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