Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The unadjusted trial balance of the Fast Forward Company as of December 31, 2021 is found on the trial balance tab. The following information is

image text in transcribed
image text in transcribed
The unadjusted trial balance of the Fast Forward 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 Fast Forward Company. 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 \$8,670. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any. 3) The equipment is expected to have a 5 -year useful life, and be worth about $8,000 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 $3,00060-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) Fast Forward's employee earns $70 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. Fast Forward agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $2,700. The terms of the initial agreement call for Fast Forward to provide services from December 12,2021 , through January 10,2022 , or 30 days of service. The club agrees to pay Fast Forward $2,700 on January 10, 2022, when the service period is complete. Revlew the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any. For transactions 1-6, review the unadjusted balance from the Trial Balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the financlal statements for accuracy. Unadjusted Fast Forward Trial Balance December 31, 2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Where Does Money Grow

Authors: Beth McGuinness

1070202150, 978-1070202150

More Books

Students also viewed these Accounting questions