E4-19 Preparing Adjusting Entries, an Adjusted Trial Balance, and Financial Statements Daily Driver, Inc. (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. LO 4-4 LO 4-5 LO 4-1, 4-2, 4-3, 4-4 Account Titles Debit Credit Cash $ 38 Accounts Receivable 9 Prepaid Insurance 6 Equipment 80 Accumulated Depreciation $ 0 Accounts Payable 9 Salaries and Wages Payable 0 Income Tax Payable 0 Common Stock 76 Retained Earnings 4 Sales Revenue 80 Insurance Expense 0 Salaries and Wages Expense 10 Supplies Expense 26 Income Tax Expense 0 Totals $169 $169 CHAPTER 4 Adjustments, Financial Statements, and Financial Results 195 Required: 1. Use the notes to determine and record adjusting entries needed on December 31 for (a) supplies used up, (b) insurance costs, (c) using up the cars benefits, (d) salaries not yet accounted for, and (e) income taxes for the year. 2. Post the adjusting entries from requirement 1 to T-accounts to determine new adjusted balances, and prepare an adjusted trial balance. (If you are completing this exercise using the general ledger tool in Connect, this requirement will be completed automatically for you.) 3. Using the adjusted balances from requirement 2, prepare an income statement, statement of retained earnings, and classified. balance sheet.