The People First Company began operations on December 1, 2021. The unadjusted trial balance of the People First Company as of December 31, 2021 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the People First Company found in chapter 3.

1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2021. 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 $3,450. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any.

3) The equipment is expected to have a 4-year useful life, and be worth about $10,000 at the end of four years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry, if any.

4) On December 26, the client paid a $11,400 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) People First's sole employee earns $160 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 payable, and prepare the necessary adjusting entry, if any.

6) In the second week of December, People First agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $4,860. The terms of the initial agreement call for People First to provide services from December 12, 2021, through January 10, 2022, or 30 days of service. The club agrees to pay People First $4,860 on January 10, 2022, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any.

Prepare the worksheet for the People First Company.

Adjusted Trial Balance

General Journal tab -For transactions 16, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Then prepare the required closing entries. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances. Trial Balance tab - You may view either the unadjusted, adjusted, or post-closing 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 financial statements will display the unadjusted, adjusted, or post-closing balances, based on your selection. Worksheet tab - Prepare the worksheet, and compare the amounts reported on the worksheet with the amounts reported on the financial statements. Unadjusted People First Trial Balance December 31, 2022 December 31, 2022 Post-closing People First Trial Balance December 31, 2022