GLO301 Based on the FastForward Company LO A1, P1, P3 The unadjusted trial balance of the FastForward Company as of December 31, 2017 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the FastForward Company found in chapter 3 1 The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2017 Review the unadjusted 2) Based on a physical count, supplies on hand total $8,670. Review the unadjusted balance in Supplies, and prepare the necessary 3) The equipment is expected to have an 5-year useful life, and be worth about $8,000 at the end of five years. Review the unadjusted 4) On December 26, the client paid a $3,000 60-day fee in advance, covering December 27 to February 24. Review the unadjusted 5) FastForward's employee earns $70 per day for a five-day workweek beginning on Monday and ending on Friday. The employee balance in Prepaid insurance, and prepare the necessary adjusting entry, if any. adjusting entry, if any balance in Accumulated depreciation, and prepare the necessary adjusting entry to record the monthly depreciation, if any balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any was last paid on Friday, December 26. Review the unadjusted balance in Salaries expense, and prepare the necessary adjusting entry, if any 6) In the second week of December, FastForward agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $2,700. The terms of the initial agreement call for FastForward to provide services from December 12, 2017, through January 10 2018, or 30 days of service. The club agrees to pay FastForward $2,700 on January 10, 2018, when the service period is complete Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any. For transactions 1-6, review the unadjusted balance from the Trial Balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the financial statements for accuracy View transaction listView journal entry worksheet 0 Date Account Title Debit Credit Dec 31 Insurance expense 114 Prepaid insurance 114 Dec 3 Supplies expense Supplies 1,050 1,050 Dec 31 Depreciation expense - Equipment 300 Accumulated depreciation - Equipment 300 4 Dec 31 Unearned consulting revenue 250 Consulting revenue 250 Dec 31 Salaries expense 350 Salaries payable 350 Dec 31 Accounts receivable 1,800 Consulting revenue 1,800 Requirement General Ledger> You may view either the unadjusted or adjusted trial balance by choosing from the drop-down box below. Your choice will determine the reported values on the financial statement tabs Adjusted FastForward Trial Balance December 31, 2017 Account Title Debit Credit Cash Accounts receivable Supplies Prepaid insurance Equipment Accumulated depreciation - Equipment Accounts payable Salaries payable Unearned consulting revenue Common stock Dividends Consulting revenue Rental revenue Depreciation expense - Equipment Salaries expense Insurance expense Rent expense Supplies expense Utilities expense 4,275 1,800 8,670 2,286 26,000 300 6,200 350 2,750 30,000 200 7,850 300 300 1,750 114 1,000 1,050 305 47,750S Total 47,750 Adjusted FastForward Income Statement For Month ended December 31, 2017 Revenues: Consulting revenue Rental revenue 7,850 300 Total revenues 8,150 Expenses: Salaries expense Rent expense Utilities expense Depreciation expense - Equipment Supplies expense Insurance expense 1,750 1,000 305 300 1,050 114 4,519 3,631 Total expenses Trial Balance St Retained Earnings The unadjusted or adjusted balances will appear for each account, based on your selection. Adjusted FastForward Statement of Retained Earnings For Month ended December 31, 2017 Retained earnings, December 1, 2017 Add: Net income 3,631 (200) 3,431 ess: Dividends Retained earnings, December 31, 2017
