Please prepare the following
EGL0301 - Based on the... LO A1, P1, P3 EThe unadjusted trial balance ofthe Solid Systems 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 Solid Systems Company. 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. 52] Based on a physical count, supplies on hand total $5,550. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any. 3] The equipment is expected to have a 5year useful life, and be worth about $12,000 at the end of five years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry to record the monthly depreciation, ifany. E4] On December 26, the client paid a $12,600 60day fee in advance, covering December 2? to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any. :5) Solid Systems's employee earns $220 per day for a fiveday 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) ln the second week of December, Solid Systems agreed to provide 30 days of consulting services to a local tness club for a xed fee of $5,340. The terms of the initial agreement call for Solid Systems to provide services from December 12, 2019, through January 10, 2020, or 30 says of service. The club agrees to pay Solid Systems $5,340 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. Impact on income General General In come St Owner Journal Ledger Trial Balance Statement Equity Balance Sheet Req uireme nt In chapter 2, we learned how to prepare journal entries for extemal transactions; tJansactions between the oompany and other entities. In this chapter, we will review the trial balance to see if the balances have remained accurate, or whether they have become inaccurate as a result of internal transactions (i.e. the use of supplies, or the use of insurance coverage). 111is question will review the unadjusted trial balance presented in chapter 2, and demonstrate the adjusting entry process used to ensure the accuracy of the general ledger balances prior to the preparation of nancial statements. GeneralI Journal tab - For transactions 1-6, review the unadjusted balance and prepare the adjusting entry necessary to oorrecdy report the revenue earned or the expense incurred. GeneralI Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Trial Balance tab You may view either the unadjusted or adjusted 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 nancial statements will display the unadjusted or adjusted balances, based on your selection. Impact on Income tab - For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income t]:- decrease, enter tjle amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.)
