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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 | $1,650 | This equals the bank balance. | |
Supplies | 180 | Only windshield washer fluid that cost $30 remains at December 31. | |
Prepaid Insurance | 1,850 | This amount was paid January 2 for car insurance from January 1 through December 31 of this year. | |
Equipment | 66,000 | This is the cars purchase price. | |
Accumulated Depreciation | $3,960 | The car will be two years old at the end of December. | |
Salaries and Wages Payable | 0 | DDI has not yet paid or recorded $1,060 of salary for December. | |
Income Tax Payable | 0 | DDI paid all its taxes from last year. | |
Common Stock | 38,000 | DDI issued 7,600 shares at $5 each. | |
Retained Earnings | 6,080 | This is the total accumulated earnings to January 1 of this year. | |
Service Revenue | 35,170 | All revenue is received in cash when the service is given. | |
Salaries and Wages Expense | 11,400 | DDIs only employee receives a salary of $1,060 for December. | |
Supplies Expense | 230 | This is the cost of windshield washer fluid used to November 30. | |
Depreciation Expense | 0 | The cars benefits are being used up about $3,960 per year. | |
Insurance Expense | 0 | No car insurance has been paid for next year. | |
Fuel Expense | 1,900 | All fuel is paid for in cash. | |
Income Tax Expense | 0 | DDIs tax rate is 20% of income before tax. | |
Totals | $83,210 | $83,210 |
General Ledger tab - Each journal entry is posted automatically to the general ledger.
Trial Balance tab - The ending balance values from the General Ledger tab flows through to the Adjusted Trial Balance tab.
Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. The unadjusted and adjusted balances will appear for each account based on your selection.
Statement of Retained Earnings tab - Use the drop-down to select the accounts properly included on the statement of retained earnings.
Balance Sheet tab - Use the drop-down to select the accounts properly included on the balance sheet. The unadjusted and adjusted balances will appear for each account, based on your selection.
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