GL0401 - Based on... on... LO C3, P2, P3 The Home Health Plus Company began operations on December 1, 2019. The unadjusted trial balance of the Home Health Plus Company as of December 31, 2019 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the Home Health Plus Company found in chapter 3. 1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2019. Review the unadjusted balance in Prepaid insurance, and prepare the necessary adjusting entry, if any. 2) Based on a physical count, supplies on hand total $5,256. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any. 3) The equipment is expected to have a 4-year useful life, and be worth about $10,000 at the end of four years, Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry, if any. 4) On December 26, the client paid a $11,400 60-day fee in advance, covering December 27 to February 24 Review the unadjusted balance in Uneared Consulting Revenue, and prepare the necessary adjusting entry, if any, 5) Home Health Plus's sole employee earns $200 per day for a five-day workweek beginning on Monday and ending on Friday. The employee was last paid on Friday, December 26. Review the unadjusted balance in Salaries payable, and prepare the necessary adjusting entry, if any. 6) In the second week of December, Home Health Plus agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $4,860. The terms of the initial agreement call for Home Health Plus to provide services from December 12, 2019, through January 10, 2020, or 30 days of service. The club agrees to pay Home Health Plus $4,860 on January 10, 2020, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any Prepare the required adjusting and closing entries for the Home Health Plus Company Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet Work Sheet General Journal tab -For transactions 1-6, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Then prepare the required closing entries. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances. Trial Balance tab - You may view either the unadjusted, adjusted, or post-closing balances by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. Income Statement, Statement of Owner's Equity, Balance Sheet tabs - The financial statements will display the uradjusted, adjusted, or post-closing balances, based on your selection. Worksheet tab - Prepare the worksheet, and compare the amounts reported on the worksheet with the amounts reported on the financial statements. Journal entry worksheet 3 4 5 6 7 8 9 10 > The balance in Prepaid Insurance represents a 24-month policy that went into effect on December 1, 2019. Review the unadjusted balance in Prepaid insurance, and prepare the necessary adjusting entry, if any. Note: Enter debits before credits Account Title Debit Credit Date Dec 31 Record entry Clear entry View general Journal General Ledger Account Cash Supplies Debit No. Debit Eredit No. Date Credit Date Dec 31 Balance 11,485 Balance 7,000 Dec 31 Prepaid Insurance Debit Credit Equipment Debit No. No. Credit Date Dec 31 Balance 4,800 Date Dec 31 Balance 43,600 Unearned consulting revenue Accounts payable Debit Credit No. Date No. Debit Credit Balance 6,200 Date Dec 31 Balance 11.400 Dec 31 No. M. Duerr, Capital Debit Credit M. Duerr, Withdrawals Debit Credit Date No. Date Dec 31 Balance 46,000 Balance 1,000 Consulting revenue Debit Credit No. Rental revenue Debit Credit No. Balance Date Dec 31 Balance 9,700 Date Dec 31 650 Salaries expense Debit Credit Rent expense Debit No. No. Credit Date Dec 31 Balance 3,400 Date Dec 31 Balance 2.300 Utilities expense No. Debit Credit Date Dec 31 Balance 365 Home Health Plus Trial Balance December 31, 2017 Debit Credit Account Title $ 11,485 7,000 4,800 43,600 6.200 11,400 46,000 Cash Supplies Prepaid insurance Equipment Accounts payable Unearned consulting revenue M. Duerr, Capital M. Duerr, Withdrawals Consulting revenue Rental revenue Salaries expense Rent expense Utilities expense Total 1,000 9,700 650 3,400 2,300 365 $ 73,950 $ 73,950 Home Health Plus Income Statement For Month Ended December 31, 2019 Revenues: $ 0 0 Expenses: 0 0 0 0 0 0 Net income $ 0 Home Health Plus Statement of Owner's Equity For Month Ended December 31, 2019 0 M. Duerr, Capital, December 31, 2019 $ 46,000 Home Health Plus Balance Sheet December 31, 2019 Assets Current assets: $ 0 0 0 0 $ 0 Total current assets: Plant assets: 0 0 Equipment, net 0 $ $ 0 Liabilities $ 0 0 0 Equity Income Statement Home Health Plus Company Work Sheet For the Year Ended December 31, 2019 Adjustments Adjusted Trial Balance Dr. Cr. Dr. Cr. 11.485 0 7.000 4,800 43.600 St. of Owner's Equity & Balance Sheet Dr. Cr. Dr. Unadjusted Trial Balance Dr. Cr. 11,485 0 7,000 4.800 43.600 Cr Account Cash Accounts receivable Supplies Prepaid insurance Equipment Accumulated depreciation Accounts payable Salarios payable Uneamed consulting revenue M. Duerr, Capital M. Duerr, Withdrawals Consulting revenue 0 6.200 6,200 11,400 46,000 11.400 45.000 1,000 1,000 9,700 9,700 650 650 3,400 0 3.400 0 2,300 2,300 Rental revenue Depreciation expense Salaries expense Insurance expense Rent expense Supplies expense Utilities expense Totals Net Income Totals 0 365 73,950 365 73.950 73.950 0 0 73,950 0 0 0 0 0 0 0 0