PB4 4 Identifying and Preparing Adjusting Journal Entries LO 4 1, LO 4 2, LO 4 3, LO 4 6 The following information applies to the questions displayed below Learn to Play, Inc is a one person company that provides private piano lessons Its unadjusted trial balance at December 31, 2015, follows along with information about selected accounts Account Names Debit Credit Further Information Cash $ 23,800 As reported on December 31 bank statement Supplies 300 Based on count, only $200 of supplies still exist Unearned Revenue $ 1,500 Of this amount, $500 was received for December lessons and $1,000 for January lessons Salaries and Wages Payable 0 The employee was paid $500 for 10 days of work through December 29 She has not yet been paid for work on December 30 and 31 Income Tax Payable 0 The company has paid last years income taxes but not this years taxes Interest Payable 0 The company has not paid the $100 of interest owed on its note payable for the current period Note Payable 12,000 This one year note was taken out this year on December 1 Common Stock 1,000 This amount was contributed for common stock in prior years Retained Earnings 3,000 This is the balance reported at the end of last year Service Revenue 25,500 Most customers pay cash for lessons each time they are provided, but some customers paid in advance Salaries and Wages Expense 18,100 The companys employee worked through December 31 Supplies Expense 800 This is the cost of supplies used through November 30 Interest Expense 0 The company has not paid the $100 of interest owed on its note payable for the current period Income Tax Expense 0 The company has an average tax rate of 30 Totals $ 43,000 $ 43,000 PB4 4 Part 1 Required 1 Prepare the (preliminary) unadjusted net income statement for the year ended December 31, 2015 PB4 4 Part 2 2 Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment for each pair PB4 4 Part 3 3 Prepare the adjusting journal entries that are required at December 31, 2015 (If no entry is required for a transaction event, select No Journal Entry Required in the first account field ) Required 1 Prepare the (preliminary) unadjusted net income statement for the year ended December 31, 2015 LEARN TO PLAY, INC Unadjusted Income Statement

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PB4-4 Identifying and Preparing Adjusting Journal Entries [LO 4-1, LO 4-2, LO 4-3, LO 4-6] [The following information applies to the questions displayed below.] Learn

PB4-4 Identifying and Preparing Adjusting Journal Entries [LO 4-1, LO 4-2, LO 4-3, LO 4-6]

[The following information applies to the questions displayed below.]

Learn to Play, Inc. is a one-person company that provides private piano lessons. Its unadjusted trial balance at December 31, 2015, follows along with information about selected accounts.

Account Names	Debit		Credit		Further Information
Cash	$	23,800			As reported on December 31 bank statement.
Supplies		300			Based on count, only $200 of supplies still exist.
Unearned Revenue			$	1,500	Of this amount, $500 was received for December lessons and $1,000 for January lessons.
Salaries and Wages Payable				0	The employee was paid $500 for 10 days of work through December 29. She has not yet been paid for work on December 30 and 31.
Income Tax Payable				0	The company has paid last years income taxes but not this years taxes.
Interest Payable				0	The company has not paid the $100 of interest owed on its note payable for the current period.
Note Payable				12,000	This one-year note was taken out this year on December 1.
Common Stock				1,000	This amount was contributed for common stock in prior years.
Retained Earnings				3,000	This is the balance reported at the end of last year.
Service Revenue				25,500	Most customers pay cash for lessons each time they are provided, but some customers paid in advance.
Salaries and Wages Expense		18,100			The companys employee worked through December 31.
Supplies Expense		800			This is the cost of supplies used through November 30.
Interest Expense		0			The company has not paid the $100 of interest owed on its note payable for the current period.
Income Tax Expense		0			The company has an average tax rate of 30%.

Totals	$	43,000	$	43,000

PB4-4 Part 1

Required:

1.	Prepare the (preliminary) unadjusted net income statement for the year ended December 31, 2015.

PB4-4 Part 2

2.	Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment for each pair.

PB4-4 Part 3

3.	Prepare the adjusting journal entries that are required at December 31, 2015. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Required 1. Prepare the (preliminary) unadjusted net income statement for the year ended December 31, 2015. LEARN TO PLAY, INC. Unadjusted Income Statement