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[The following information applies to the questions displayed below.] Daily Driver, Incorporated (DDI), operates a driving service through a popular ride-sharing app. DDI has
[The following information applies to the questions displayed below.] Daily Driver, Incorporated (DDI), operates a driving service through a popular ride-sharing app. DDI has prepared a list of unadjusted account balances at its December 31 year-end. You have reviewed the balances and made notes shown in the right column. Cash DAILY DRIVER, INCORPORATED Unadjusted Trial Balance Account Name Debit $ 1,250 Supplies Prepaid Insurance 100 1,450 At December 31 Credit Notes This equals the bank balance. Only windshield washer fluid that cost $30 remains at December 31. This amount was paid January 2 for car insurance from January 1 through December 31 of this year. This is the car's purchase price. The car will be two years old at the end of December. 0 DDI has not yet paid or recorded $900 of salary for December. Equipment 50,000 Accumulated Depreciation $ 3,000 Salaries and Wages Payable Income Tax Payable 0 Common Stock Retained Earnings 30,000 5,680 Service Revenue 25,570 Salaries and Wages 9,800 Expense Supplies Expense 150 Depreciation Expense Insurance Expense 0 0 Fuel Expense Income Tax Expense Totals $ 64,250 $ 64,250 1,500 0 DDI paid all its taxes from last year. DDI issued 6,000 shares at $5 each. This is the total accumulated earnings to January 1 of this year. All revenue is received in cash when the service is given. DDI's only employee receives a salary of $900 for December. This is the cost of windshield washer fluid used to November 30. The car's benefits are being used up about $3,000 per year. No car insurance has been paid for next year. All fuel is paid for in cash. DDI's tax rate is 20% of income before tax.
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