mework A Saved Help Save & E Che The unadjusted trial balance of the Smart Deals Company as of December 31 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. 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 an 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, through January 10, or 30 days of service. The club agrees to pay Smart Deals $3,900 on January 10, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any. es Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on 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 View journal entry worksheet No Date Account Title Debit Credit Ret 4 Answer is not complete. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on 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 No Date Account Title Debit Credit 1 Dec 31 350 Insurance expense Prepaid insurance 350 2 Dec 31 1,550 Supplies expense Supplies OO OOOO 1,550 3 Dec 31 Depreciation expense - Equipment Accumulated depreciation - Equipment 4 Dec 31 No Transaction Recorded Ret 4. 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, 2016 Account Title Debit Credit IS 7,655 6,200 8,400 43,000 14,200 9,000 38,000 Cash Supplies Prepaid insurance Equipment Accounts payable Unearned consulting revenue Common stock Dividends Consulting revenue Rental revenue Salaries expense Rent expense Utilities expense Total 1,200 8,800 400 2,040 1,500 405 $ 70,400 $ 70,400
