The unadjusted trial balance of the Forever Fitness 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 Forever Fitness 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 $5,100. 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 $10,800 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) Forever Fitness's employee earns $190 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 Forever Fitness agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $4.620. The terms of the initial agreement call for Forever Fitness to provide services from December 12, 2021, through January 10, 2022 or 30 days of service. The club agrees to pay Forever Fitness $4,620 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. Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet Impact on income 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 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 Account Title Debit Credit Date Dec 31 Record entry Clear entry View general journal Journal entry worksheet On December 26, the client paid a $10,800 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 Journal entry worksheet 4 ERREX In the second week of December, Forever Hitness agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $4,620. The terms of the initial agreement call for Forever Fitness to provide services from December 12, 2021, through January 10, 2022, or 30 days of service. The club agrees to pay Forever Fitness $4,620 on January 10, 2022, when the Note: Enter debits before credits. Date Account Title Debit Credit Dec 31 Record entsy Clear entry View general journal Unadjusted Forever Fitness Income Statement For Month Ended December 31, 2021 Revenues: $ 0 0 Expenses: 0 0 0 0 0 10 Trial Balance St Owner Equity Unadjusted Forever Firest Balance Sheet December 31, 2021 Assets LA 0 0 0 0 0 0 0 Liabilities $ 0 0 0 0 Equity 0 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 S 0
