The unadjusted trial balance of the Landscape Dreams 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 Landscape Dreams 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 $3,600. 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 $11,000 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 $12,000 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) Landscape Dreams's employee earns $170 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, Landscape Dreams agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $5,100. The terms of the initial agreement call for Landscape Dreams to provide services from December 12, 2021 through January 10, 2022, or 30 days of service. The club agrees to pay Landscape Dreams $5,100 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 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.) General General Income St Owner Impact on Requirement Trial Balance Balance Sheet Journal Ledger Statement Equity income 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 financial statements for accuracy. View transaction list Journal entry worksheet 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 Account Title Debit Credit Date Dec 31 Record entry Clear entry View general Journal Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Show less Unadjusted General Ledger Account Cash Supplies Debit No. Debit Credit No. Credit Balance Date Dec 31 Balance 8,855 Date Dec 31 4,800 Prepaid insurance Debit Credit Equipment Debit No. Date Dec 31 Balance 4,800 No. Credit Date Dec 31 Balance 41,000 Accounts payable Debit No. Date Dec 31 Credit Balance 14,200 No. Uneamed consulting revenue Date Debit Credit Dec 31 Balance 12,000 No. Date Dec 31 S. Strods Capital Debit Credit S. Strods Withdrawals Debit Credit No. Balance 32,000 Date Dec 31 Balance 800 Rental revenue Consulting revenue Debit Credit No. No Debit Date Dec 31 Credit Balance 6.400 Date Dec 31 Balance 650 No. Debit Credit No. Date Debit Credit Date Dec 31 Balance 4,800 Balance 41,000 Dec 31 Accounts payable Debit Credit No. No. Date Dec 31 Balance 14,200 Unearned consulting revenue Date Debit Credit Dec 31 Balance 12,000 S. Strods Capital Debit Credit S. Strods Withdrawals Debit Credit No Date No. Balance 32,000 Date Dec 31 Balance 800 Dec 31 Rental revenue Consulting revenue Debit Credit No. No. Debit Credit Date Dec 31 Balance 6,400 Date Dec 31 Balance 650 Salaries expense Debit Credit Rent expense Debit Credit No. No. Date Dec 31 Balance 2,890 Date Dec 31 Balance 1,750 Utilities expense Debit Credit No. Date Dec 31 Balance 355 General General Income St Owner Impact on Requirement Balance Sheet Trial Balance Journal Ledger Statement Equity 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 Landscape Dreams Trial Balance December 31, 2021 Account Title Debit Credit $ 8,855 4,800 4,800 41.000 14,200 12,000 32,000 Cash Supplies Prepaid insurance Equipment Accounts payable Uneared consulting revenue S. Strods Capital s Strods Withdrawals Consulting revenue Rental revenue Salaries expense Rent expenso Utilities expense Total 800 6,400 650 24 2,890 1,750 355 65,250 $ 65,250 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. Unadjusted Landscape Dreams Income Statement For Month Ended December 31, 2021 Revenues: Expenses: The unadjusted or adjusted balances will appear for each account, based on your selection. Unadjusted Landscape Dreams Statement of Owner's Equity For Month Ended December 31, 2021 S. Strods Capital, December 1, 2021 Add: Net income Less. Withdrawals by owner S. Strods Capital, December 31, 2021 $ 32,000 (800) 31,200 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. Unadjusted Landscape Dreams Balance Sheet December 31, 2021 Assets Liabilities Equity General General Income St Owner Impact on Requirement Trial Balance Balance Sheet Journal Ledger Statement Equity 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 valus. Net Income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.) Unadjusted Account affecting the Impact on net Adjusting entry related to: Income statement Balance Sheet Income Insurance Supplies Depreciation Fees collected in advance Salarios Work performed in advance Total impact on income due to adjustments