The unadjusted balance of the Company as of December 31 is found on the trial balance tabThe following information is required to prepare the necessary adjusting entries for the OnPoint 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 , 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, any 3) The equipment is expected to have an 5-year useful life, and be worth about $10,000 at the end of five years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry to record the monthly depreciationif any 4) On December 26the client paid a $4,200 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenueand prepare the necessary adjusting entry. If any. 5) OnPoint's employee eams 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, OnPoint agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $3.180The terms of the initial agreement call for OnPoint to provide services from December 12, through January 10, or 30 days of service. The club agrees to pay OnPoint 3.180 on January 10, when the service period is complete Review the unadjusted balance in Consulting revenue and prepare the necessary adjusting entryif any
The unadjusted trial balance of the On Point 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 OnPoint 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 $3,450, Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry. If any. 3) The equipment is expected to have an 5-year useful life, and be worth about $10,000 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 $4.200 60-day fee in advance covering December 27 to February 24 Review the unadjusted balance in Uneamed Consulting Revenue and prepare the necessary adjusting entry, if any. 5) OnPoint's employee earns $90 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, OnPoint agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $3,180. The terms of the initial agreement call for On Point to provide services from December 12, through January 10, or 30 days of service. The club agrees to pay Onpoint $3,180 on January 10, when the service period is complete Review the unadjusted balance in Consulting revenue and prepare the necessary adjusting entry, if any Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income In chapter 2, we learned how to prepare journal entries for external transactions; transactions between the company 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 (.e. the use of supplies, or the use of insurance coverage). This 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 financial statements General Journal tab - For transactions 1-6, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense Incurred. General 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 Retained earnings, Balance Sheet tabs. The financial 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 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.) View transaction list View journal entry worksheet x Date Account Title Debit 1 Cred Dec 31 Insurance expense Prepaid insurance 2 Dec 31 Supplies expense Supplies 3.450 3,450 3 Dec 31 Depreciation expense - Equipment Accumulated depreciation - Equipment 4 Dec 31 Unearned consulting revenue Consulting revenue 350 350 5 5 Dec 31 Salaries expense Salaries payable 270 270 6 Dec 31 Accounts receivable Consulting revenue 2.120 2.120 Requirement General Ledoen > Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income Each journal entry is posted automatically to the general ledger. Use the drop down button to view the unadjusted or adjusted balances. Adjusted General Ledger Account Cash Accounts receivable No. Debit Credit Date Dec 31 No. Debit Balance 9.145 Credit Date Dec 31 Dec 31 Balance 0 2,120 6 2120 Supplies Debit No. Credit Prepaid insurance Debit Credit No. Date Dec 31 Dec 31 Balance 4,600 1.150 Date Dec 31 Balance 3.600 3.450 Equipment Debit Accounts payable No Date Credit Balance No. Date Debit Credit Balance Equipment Debit No. Date Dec 31 Credit Accounts payabile Debit Credit No. Balance 34.000 Date Dec 31 Balance 10.200 Salaries payable Debit Credit No. No. Date Dec 31 Dec 31 Balance 0 270 Uneamed consulting revenue Date Debit Credit Dec 31 Dec 31 350 Balance 4.200 3.850 5 270 4 Common stock Dividends No. Date Debit Credit No. Date Balance 34 000 Debit Credit Balance 900 Consulting revenue Debit Credit Rental revenue No. No. Debit Date Dec 31 Dec 31 Dec 31 Credit Date Dec 31 Balance 6.400 6.750 8.870 Balance 400 4 350 2.120 6 Salarios expense Rent expense M le he Cente Common stock Dividends No. Date Debit Credit No. Date Debit Credit Balance 34,000 Balance 900 Consulting revenue Rental venue No. Debit Credit No. Date Debit Credit Date Dec 31 Dec 31 Dec 31 Balance 400 Dec 31 Balance 6,400 6,750 8,870 4 350 2,120 6 Salaries expense Debit Credit No. Rent expense Debit Credit No. Date Dec 31 Dec 31 Balance 1,530 1.800 Date Dec 31 Balance 1.100 1 5 270 Supplies expense Debit Credit No. Utilities expense Debit Credit Balance No. Date Dec 31 Dec 31 0 Date Dec 31 Balance 325 2 3,450 3.450 > Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income You may view either the unadjusted or adjusted trial balance by choosing from the drop-down box below. Your choice will determine the reported values on the financial statement tabs. Adjusted On Point Trial Balance December 31, 2019 Account Title Debit Credit 5 Cash Accounts receivable supplies 9,145 2,120 1.150 3.600 34.000 Prepaid insurance Equipment Accounts payable Salaries payable Unearned consulting revenue Common stock Dividends Consulting revenue 10.200 2701 3850 34000 900 8870 Check Irlalalance December 31, 2015 Account Title Debit Credit S 9,145 2,120 1,150 3,600 34.000 Cash Accounts receivable Supplies Prepaid insurance Equipment Accounts payable Salaries payable Unearned consulting revenue Common stock Dividends Consulting revenue Rental revenue Salaries expense Rent expense Supplies expense Uslities expense Total 10.200 270 3,850 34,000 900 3.870 400 . 1 800 1 100 3.450 325 57 590 $ 57,590 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection, Adjusted OnPoint Income Statement For Month ended December 31, 2019 Revenues: Consulting revenue Rental revenue 44 8,870 400 $ 9.270 Total revenues Expenses: Salaries expense Rent expense Utilities expense Insurance expense Supplies expense Depreciation expense - Equipment 1.800 1.100 325 0 3.450 0 Chech Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet 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. Adjusted On Point Balance Sheet December 31, 2019 Assets $ 0 0 0 0 0 0 0 Liabilities DuPoint Balance Sheet December 31, 2019 Assets 0 0 0 0 0 0 0 Liabilities $ 0 0 0 0 Equity 34,000 0 0 0 0 0 0 0 Liabilities $ 0 0 0 0 Equity 34,000 0 34,000 Total equity Total liabilities and equity 5 34.000 General Journal General Ledger Requirement Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income 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.) Adjusted Dates: Dec 31 to: Dec 31 Account affecting the Impact on net Adjusting entry related to: Income statement Balance Sheet income Insurance Supplies Depreciation Foes collected in advance Salaries Work performed in advance Total impact on income due to adjustments $ 0