The unadjusted trial balance of the Smart Deals Company as of December 31, 2021 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the Smart Deals Company 1) The balance in Prepaid Insurance represents a 24-month policy that went into effect on December 1, 2021. 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 $4,650. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, If any 3) The equipment is expected to have a 5-year useful life, and be worth about $10,000 at the end of five years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry to record the monthly depreciation, if any 4) On December 26, the client paid a $9,000 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any. 5) Smart Deals's employee earns $120 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 expense, and prepare the necessary adjusting entry, if any. 6) In the second week of December, Smart Deals agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $3,900. The terms of the initial agreement call for Smart Deals to provide services from December 12, 2021, through January 10, 2022, of 30 days of service. The club agrees to pay Smart Deals $3,900 on January 10, 2022, when the service period is complete Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any. Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet Impact on Income General General Requirement Income Trial Balance St Owner Journal Impact on Ledger Balance Sheet Statement Equity income 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 list Journal entry worksheet 2 3 4 5 6 Based on a physical count, supplies on hand total $4,650. Review the unadjusted balance in Supplies, 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 Requirement General Income St Owner Trial Balance Journal Impact on Balance Sheet Ledger Statement Equity income Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection. Adjusted Smart Deals Income Statement For Month Ended December 31, 2021 Revenues: $ 0 0 Expenses: 0 0 0 0 0 0 Trial Balance St Owner Equity> Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Include all balance sheet accounts, even those with zero balances. Adjusted Unadjusted Adjusted Smart Deals Balance Sheet December 31, 2021 Assets $ OOOOO 0 0 Liabilities 0 0 0 0 Equity 0 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. Smart Deals agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $3,900. The terms of the initial agreement call for Smart Deals to provide services from December 12, 2021, through January 10, 2022, or 30 days of service. The club agrees to pay Smart Deals $3,900 on January 10, 2022, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any, Requirement General General Income St Owner Impact on Journal Ledger Trial Balance Statement Equity Balance Sheet Income For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.) Adjusted Account affecting the Impact on net Adjusting entry related to: Income statement Balance Sheet Income Insurance Supplies Depreciation Fees collected in advance Salaries Work performed in advance Total impact on income due to adjustments $ 0 Balance Sheet Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet Impact on Income 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. Unadjusted Smart Deals Trial Balance December 31, 2021 Account Title Credit $ Debit 7,655 6,200 8,400 43,000 14,200 9,000 38,000 Cash Supplies Prepaid insurance Equipment Accounts payable Uneamed consulting revenue D. Kelley Capital D. Kelley Withdrawals Consulting revenue Rental revenue Salarios expense Rent expenso Us expense Total 1,200 8,800 400 2,040 1,500 405 70,400 $ 5 70,400 Oeneral Ledger Income Statement >
