The unadjusted trial balance of the OnPoint 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 On Point Company 1) The balance in Prepaid insurance represents a 24-month policy that went into effect on Decembert Review the unadjusted balance in Prepaid insurance and prepare the necessary adjusting entry, if any 21 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 54,200 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) On Points 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 $3180. The 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 On Point $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 (1.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 joumal entry is posted automatically to the general ledger. Use the drop down button to view Trial Balance tob 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 offected, 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 Journal > View transaction list View journal entry worksheet No 1 Account Title > Crodle Dec 31 Insurance expense Prepaid insurance 7 2 Dec 31 Supplies expense Supplies 3.450 3,450 73 Dec 31 Depreciation expense - Equipment Accumulated depreciation - Equipment Dec 31 Unearned consulting revenue Consulting revenue 350 350 5 Dec 31 Salaries expense Salaries payable 270 270 6 Dec 31 Accounts receivable Consulting revenue 2,120 2 120 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 Gash Accounts receivable No. Debit Credit Date Dec 31 No. Debit Credit Balance Balance 9.145 Date Dec 31 Dec 31 0 6 2,120 2,120 Supplies Debit Prepaid insurance No. Credit No. Debit Credit Date Dec 31 Dec 31 Balance 4,600 1.150 Date Dec 31 Balance 3,600 3.450 Equipment Debit No. Date Dec 31 Credit Accounts payable Debit Credit No. Balance 34000 Date Da 11 Balance 10 200 Equipment Debit No. Credit Accounts payablo Debit Credit Date Dec 31 No. Balance 34,000 Date Dec 31 Balance 10,200 Salorios payable Debit Credit No. Uneanned consulting revenue Debit Credit No. Date Dec 31 Dec 31 Balance 0 270 Date Dec 31 Dec 31 Balance 4,200 3,850 5 270 4 350 Common stock Dividends No. Date Debit Credit No. Date Debit Balance 34.000 Credit Balance 900 Consulting revenue Debit Credit Rental revenue No. No. Debit Credit Date Dec 31 Dec 31 Dec 31 Dato Dec 31 Balance 6,400 6.750 8.870 Balance 400 4 6 350 2.120 Salaries expense Rent expense Chec Common stock Dividonds No. Date Debit Credit No. Date Debit Credit Balance 34,000 Balance 900 Rental revenue Consulting fovente Debit Credit No. No. Debit Credit Date Dec 31 Balance 400 Date Dec 31 Dec 31 Dec 31 Balance 6,400 6,750 8,870 4 350 2,120 6 Salatles axpense Debit Credit Rent expense Debit Credit No. No. Dato Dec 31 Dec 31 Balance 1.530 1,800 Date Dec 31 Balance 1,100 5 270 Supplies exponse Debit Credit Utilities expense Debit Credit No. No. Date Dec 31 Dec 31 Balance 0 3,450 Date Dec 31 Balance 325 2 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 Cash Accounts receivable Supplies Prepaid insurance Equipment Accounts payable Salaries payable Uneamed consulting revenue Common stock Dividends 9.145 2,120 1.150 3,600 34 000 10,200 270 3,850 34.000 900 Check December 31, 2019 Account Title Credit $ Debit 9.145 2,120 1.150 3,600 34.000 Cash Accounts receivable Supplies Prepaid insurance Equipment Accounts payable Salaries payable Uneamed consulting revenu Common stock Dividends Consulting revenue Rental revenue Salaries expense Rent expense Supplies expense Us expense Total 10,200 270 3,850 34.000 900 8,870 400 1,800 1,100 3.450 325 575905 5 57.590 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Famings Balance Shoot 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 On Point Income Statement Fot Month onded Documber 31, 2019 Revenues: Consulting revenue S 8,870 Rental revenue 400 . $ 9,270 Total revenues Expenses: Salaries expense Rent expense Utilities expense Insurance expense Supplies expense Depreciation expense-Ement 1.800 1.100 325 0 3.450 0 OnPoint Income Statement For Month ended December 31, 2019 Revenues: Consulting revenue Rental revenue $ tt 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 Total expenses 6,675 2.595 S Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income The unadjusted or adjusted balances will appear for each account, based on your selection. Adjusted OnPoint Statement of Retained Earnings For Month ended December 31, 2019 Retained earnings December 1, 2019 $ Add: Net Income Less Dividends Retained earnings December 31, 2019 0 2,595 (900) 1.695 Income Statement Balance Sheet > 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 Shoot December 31, 2019 Assets $ 0 0 0 0 0 0 0 Adjusted On Point Balance Sheet December 31, 2019 Assets $ 0 0 0 0 0 0 0 Liabilities $ 0 0 0 0 Equity 34.000 Assets 0 0 0 0 0 0 0 Liabilities 0 0 0 0 Equity 34 000 0 34.000 Total equity Total liabilities and equity $ 34.000 Requirement General Journal General Lodger 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.) to: Dec 31 Impact on not Income Adjusted Dates: Dec 31 Account affecting the Adjusting entry related to: Income statement Balance Sheet Insurance Supplies Depreciation Fees collected in advance Salaries Work performed in advance Total impact on income due to adjustments $ 0 The unadjusted trial balance of the OnPoint 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 On Point Company 1) The balance in Prepaid insurance represents a 24-month policy that went into effect on Decembert Review the unadjusted balance in Prepaid insurance and prepare the necessary adjusting entry, if any 21 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 54,200 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) On Points 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 $3180. The 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 On Point $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 (1.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 joumal entry is posted automatically to the general ledger. Use the drop down button to view Trial Balance tob 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 offected, 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 Journal > View transaction list View journal entry worksheet No 1 Account Title > Crodle Dec 31 Insurance expense Prepaid insurance 7 2 Dec 31 Supplies expense Supplies 3.450 3,450 73 Dec 31 Depreciation expense - Equipment Accumulated depreciation - Equipment Dec 31 Unearned consulting revenue Consulting revenue 350 350 5 Dec 31 Salaries expense Salaries payable 270 270 6 Dec 31 Accounts receivable Consulting revenue 2,120 2 120 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 Gash Accounts receivable No. Debit Credit Date Dec 31 No. Debit Credit Balance Balance 9.145 Date Dec 31 Dec 31 0 6 2,120 2,120 Supplies Debit Prepaid insurance No. Credit No. Debit Credit Date Dec 31 Dec 31 Balance 4,600 1.150 Date Dec 31 Balance 3,600 3.450 Equipment Debit No. Date Dec 31 Credit Accounts payable Debit Credit No. Balance 34000 Date Da 11 Balance 10 200 Equipment Debit No. Credit Accounts payablo Debit Credit Date Dec 31 No. Balance 34,000 Date Dec 31 Balance 10,200 Salorios payable Debit Credit No. Uneanned consulting revenue Debit Credit No. Date Dec 31 Dec 31 Balance 0 270 Date Dec 31 Dec 31 Balance 4,200 3,850 5 270 4 350 Common stock Dividends No. Date Debit Credit No. Date Debit Balance 34.000 Credit Balance 900 Consulting revenue Debit Credit Rental revenue No. No. Debit Credit Date Dec 31 Dec 31 Dec 31 Dato Dec 31 Balance 6,400 6.750 8.870 Balance 400 4 6 350 2.120 Salaries expense Rent expense Chec Common stock Dividonds No. Date Debit Credit No. Date Debit Credit Balance 34,000 Balance 900 Rental revenue Consulting fovente Debit Credit No. No. Debit Credit Date Dec 31 Balance 400 Date Dec 31 Dec 31 Dec 31 Balance 6,400 6,750 8,870 4 350 2,120 6 Salatles axpense Debit Credit Rent expense Debit Credit No. No. Dato Dec 31 Dec 31 Balance 1.530 1,800 Date Dec 31 Balance 1,100 5 270 Supplies exponse Debit Credit Utilities expense Debit Credit No. No. Date Dec 31 Dec 31 Balance 0 3,450 Date Dec 31 Balance 325 2 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 Cash Accounts receivable Supplies Prepaid insurance Equipment Accounts payable Salaries payable Uneamed consulting revenue Common stock Dividends 9.145 2,120 1.150 3,600 34 000 10,200 270 3,850 34.000 900 Check December 31, 2019 Account Title Credit $ Debit 9.145 2,120 1.150 3,600 34.000 Cash Accounts receivable Supplies Prepaid insurance Equipment Accounts payable Salaries payable Uneamed consulting revenu Common stock Dividends Consulting revenue Rental revenue Salaries expense Rent expense Supplies expense Us expense Total 10,200 270 3,850 34.000 900 8,870 400 1,800 1,100 3.450 325 575905 5 57.590 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Famings Balance Shoot 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 On Point Income Statement Fot Month onded Documber 31, 2019 Revenues: Consulting revenue S 8,870 Rental revenue 400 . $ 9,270 Total revenues Expenses: Salaries expense Rent expense Utilities expense Insurance expense Supplies expense Depreciation expense-Ement 1.800 1.100 325 0 3.450 0 OnPoint Income Statement For Month ended December 31, 2019 Revenues: Consulting revenue Rental revenue $ tt 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 Total expenses 6,675 2.595 S Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income The unadjusted or adjusted balances will appear for each account, based on your selection. Adjusted OnPoint Statement of Retained Earnings For Month ended December 31, 2019 Retained earnings December 1, 2019 $ Add: Net Income Less Dividends Retained earnings December 31, 2019 0 2,595 (900) 1.695 Income Statement Balance Sheet > 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 Shoot December 31, 2019 Assets $ 0 0 0 0 0 0 0 Adjusted On Point Balance Sheet December 31, 2019 Assets $ 0 0 0 0 0 0 0 Liabilities $ 0 0 0 0 Equity 34.000 Assets 0 0 0 0 0 0 0 Liabilities 0 0 0 0 Equity 34 000 0 34.000 Total equity Total liabilities and equity $ 34.000 Requirement General Journal General Lodger 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.) to: Dec 31 Impact on not Income Adjusted Dates: Dec 31 Account affecting the Adjusting entry related to: Income statement Balance Sheet Insurance Supplies Depreciation Fees collected in advance Salaries Work performed in advance Total impact on income due to adjustments $ 0