Question has been updated, please fix balance sheets and complete Impact on income.

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. The unadjusted trial balance of the Travel Smart 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 Travel Smart 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 $3,750. Review the unadjusted balance in Supplies, and prepare the necessar adjusting entry, if any. 3) The equipment is expected to have an 5-year 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 if any. 4) On December 26, the client paid a $5,40060-day fee in advance, covering December 27 to February 24 . Review the unadjuste balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any. 5) Travel Smart's employee earns $110 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, Travel Smart agreed to provide 30 days of consulting services to a local fitness club for a fixec fee of $3,660. The terms of the initial agreement call for Travel Smart to provide services from December 12 , through January 10 or 30 days of service. The club agrees to pay Travel Smart $3,660 on January 10, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any. For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.) Balance Sheet Impact on income Unadjusted \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Travel Smart } \\ \hline \multicolumn{3}{|c|}{ Balance Sheet } \\ \hline \multicolumn{3}{|c|}{ December 31, 2021} \\ \hline \multicolumn{3}{|c|}{ Assets } \\ \hline Cash & A$ & 2,985 \\ \hline Supplies & & 5,000 \\ \hline Prepaid insurance & + & 4,800 \\ \hline Accounts receivable & & 0 \\ \hline Equipment & & 42,000 \\ \hline Prepaid insurance & + & (4,800) \\ \hline & & 0 \\ \hline Total assets & $ & 49,985 \\ \hline \multicolumn{3}{|c|}{ Liabilities } \\ \hline Accounts payable & A$ & 8,200 \\ \hline Salaries payable & & 0 \\ \hline & & 0 \\ \hline & & 0 \\ \hline Total liabilities & & 8,200 \\ \hline \multicolumn{3}{|c|}{ Equity } \\ \hline Common stock & A & 38,000 \\ \hline Retained earnings & & 2,840 \\ \hline Total equity & & 40,840 \\ \hline Total liabilities and equity & $ & 49,040 \\ \hline \end{tabular} St of Retained Earnings 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. The unadjusted trial balance of the Travel Smart 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 Travel Smart 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 $3,750. Review the unadjusted balance in Supplies, and prepare the necessar adjusting entry, if any. 3) The equipment is expected to have an 5-year 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 if any. 4) On December 26, the client paid a $5,40060-day fee in advance, covering December 27 to February 24 . Review the unadjuste balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any. 5) Travel Smart's employee earns $110 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, Travel Smart agreed to provide 30 days of consulting services to a local fitness club for a fixec fee of $3,660. The terms of the initial agreement call for Travel Smart to provide services from December 12 , through January 10 or 30 days of service. The club agrees to pay Travel Smart $3,660 on January 10, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any. For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.) Balance Sheet Impact on income Unadjusted \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Travel Smart } \\ \hline \multicolumn{3}{|c|}{ Balance Sheet } \\ \hline \multicolumn{3}{|c|}{ December 31, 2021} \\ \hline \multicolumn{3}{|c|}{ Assets } \\ \hline Cash & A$ & 2,985 \\ \hline Supplies & & 5,000 \\ \hline Prepaid insurance & + & 4,800 \\ \hline Accounts receivable & & 0 \\ \hline Equipment & & 42,000 \\ \hline Prepaid insurance & + & (4,800) \\ \hline & & 0 \\ \hline Total assets & $ & 49,985 \\ \hline \multicolumn{3}{|c|}{ Liabilities } \\ \hline Accounts payable & A$ & 8,200 \\ \hline Salaries payable & & 0 \\ \hline & & 0 \\ \hline & & 0 \\ \hline Total liabilities & & 8,200 \\ \hline \multicolumn{3}{|c|}{ Equity } \\ \hline Common stock & A & 38,000 \\ \hline Retained earnings & & 2,840 \\ \hline Total equity & & 40,840 \\ \hline Total liabilities and equity & $ & 49,040 \\ \hline \end{tabular} St of Retained Earnings