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

The unadjusted trial balance of the Finance 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 Finance First 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 $5,700. 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 $9,000 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 $13,200 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) Finance First's employee earns $230 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, Finance First agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $5,580. The terms of the initial agreement call for Finance First to provide services from December 12, 2021, through January 10, 2022, or 30 days of service. The club agrees to pay Finance First $5,580 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.

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Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity 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 (i.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 Owner's Equity, 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.) - Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity 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. Unadjusted Finance First Trial Balance December 31, 2021 Account Title Debit Credit $ 6,645 Cash Supplies 7,600 6,600 60,000 12,200 Prepaid insurance Equipment Accounts payable Unearned consulting revenue p. Fisher Capital P. Fisher Withdrawals Consulting revenue Rental revenue 13,200 52,000 1,200 10,600 800 Salaries expense Rent expense Utilities expense Total 3,910 2,450 395 88,800 $ $ 88,800 Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet Impact on income The unadjusted or adjusted balances will appear for each account, based on your selection. Unadjusted Finance First Statement of Owner's Equity For Month Ended December 31, 2021 P. Fisher Capital, December 1, 2021 Add: Net income 52,000 Less: Withdrawals by owner P. Fisher Capital, December 31, 2021 (1,200) 50,800 $ Unadjusted Finance First Balance Sheet December 31, 2021 Assets Liabilities Equity Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity 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.) Unadjusted Account affecting the: Income statement Balance Sheet Impact on net income Adjusting entry related to: Insurance Supplies Depreciation Fees collected in advance Salaries Work performed in advance Total impact on income due to adjustments Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet For transactions 1-6, review the unadjusted balance from the Trial Balance and prepare the adjus report the revenue earned or the expense incurred. After adjusting the accounts, review the financi View transaction list Journal entry worksheet 1 2 3 4 5 6 > 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. Note: Enter debits before credits. Date Account Title Debit Credit Dec 31 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet For transactions 1-6, review the unadjusted balance from the Trial Balance and prepare the adjust report the revenue earned or the expense incurred. After adjusting the accounts, review the financia View transaction list Journal entry worksheet Based on a physical count, supplies on hand total $5,700. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any. Note: Enter debits before credits. Date Account Title Debit Credit Dec 31 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet For transactions 1-6, review the unadjusted balance from the Trial Balance and prepare the adjus report the revenue earned or the expense incurred. After adjusting the accounts, review the financi View transaction list Journal entry worksheet The equipment is expected to have a 5-year useful life, and be worth about $9,000 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. Note: Enter debits before credits. Date Account Title Debit Credit Dec 31 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet For transactions 1-6, review the unadjusted balance from the Trial Balance and prepare the adjust report the revenue earned or the expense incurred. After adjusting the accounts, review the financia View transaction list Journal entry worksheet On December 26, the client paid a $13,200 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. Note: Enter debits before credits. Date Account Title Debit Credit Dec 31 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet For transactions 1-6, review the unadjusted balance from the Trial Balance and prepare the adjust report the revenue earned or the expense incurred. After adjusting the accounts, review the financia View transaction list Journal entry worksheet Finance First's employee earns $230 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. Note: Enter debits before credits. Date Account Title Debit Credit Dec 31 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet For transactions 1-6, review the unadjusted balance from the Trial Balance and prepare the adjust report the revenue earned or the expense incurred. After adjusting the accounts, review the financia View transaction list Journal entry worksheet