Fido's Food Mart Unadjusted Trial Balance December 31, 20XX Account Title Debits Credits Cash 50,938 Accounts Receivable 12,250 Inventory 84,720 Supplies 1,850 Prepaid Insurance 480 Equipment 30,550 Vehicle 12,250 Accumulated Depreciation - Equipment & Vehicle 0 Accounts Payable 62,128 Unearned Revenue (Gift Cards) 375 Bonds Payable (mature 12/31/XX) 12,000 Common Stock (200 shares @ $210/share, par $210) 42,000 Retained Earnings 0 Sales Revenue 132,625 Operating Expenses 34,840 Depreciation Expense 0 Insurance Expense 0 Rent Expense 5,750 Supplies Expense 0 Wages Expense 15,500 Totals 249,128 249,128 The account balances at the end of the fourth month shown above are direct from the Unadjusted Trial Balance Required: 1. Fido's Food Mart purchased a three-month automobile insurance policy on December 1, 20XX for $480 and recorded it as Prepaid Insurance. Now that it is the end of the fiscal year, the accountant needs to prepare the adjusting journal entry to account for one month of insurance that was used. a. Show the balancing effects on the accounting equation b. Record the adjusting journal entry in two-line format using a debit and a credit. c. Show T-Accounts with beginning balances, transactions & end balances. the delivery of goods or services are a Liability to the company. The company must complete its 21 Project : Aditments actual amount. 2. At the end of the fiscal year, a manual inventory count showed that $650 of supplies remain Now, the accountant needs to prepare the journal entry to adjust the Supplies bulance to the Show the balancing effects on the accounting equation b. Record the adjusting journal entry in two-line format using a debit and a credit. c. Show T-Accounts with beginning balances, transactions & end balances. 3. Four of the $25 gift cards sold in November were redeemed this month. Show the adjusting journal entry that the accountant needs to prepare. a. Show the balancing effects on the accounting equation b. Record the adjusting journal entry in two-line format using a debit and a credit. c. Show T-Accounts with beginning balances, transactions & end balances. 4. Prepare an Adjusted Trial Balance for Fido's Food Mart. 5. Prepare the following financial statements from the Adjusted Trial Balance in #4: 1. Single-step Income Statement b. Statement of Retained Earnings C. Classified Balance Sheet YEAR END REVIEW KUMOHD/ Stock Income Statement Revenue Expenses Insurance Expense Supplies Expense Balance Sheet Assets Cash Accounts Receivable Inventory Supplies Prepaid Expenses Liabilities Accounts Payable Wages Payable Unearned Revenue (Gift Cards) Equity Common Stck Retained Earnings The objective for period-end adjustments is to accurately report the economic impact of the account ing period. An analysis will be necessary to determine what expenses have been used during the period. Expenses that haven't been used, are assets (prepayments) for future use. Revenue is earned when the goods are delivered or the service is performed. Revenue received before promise to deliver goods or services, or refund the money received in advance