View previous attempt 1 The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months: a. The December 31 inventory count of computer supplies shows $1,060 still available. b. Three months have expired since the 12-month insurance premium was paid in advance. C. As of December 31, Sandy Perry has not been paid for four days of work at $220 per day. d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value. f. Three of the four months' prepaid rent has expired. eBook Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income Prepare journal entries for each of the December transactions. If no journal entry is required, select "No journal er required" in the first account field. Then, using the 3-step adjusting entry process, and the information given for adjustment prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the general ledger and trial balance for accuracy. Shou View transaction list View journal entry worksheet No Date Account Title Debit Credit 1 Dec 02 1,025 Advertising expense Cash 1,025 The November 30, 2018, unadjusted trial balance of Best Bytes is found in the Trial balance tab. Best Bytes had the following transactions and events in December 2018. Dec. 2 Paid $1,060 cash to Lakeview Mall for Best Bytes' share of mall advertising costs. Dec. 3 Paid $520 cash for minor repairs to the company's computer. Dec. 4 Received $6,000 cash from Sanchez Engineering Co. for the receivable from November. Dec. 10 Paid cash to Sandy Perry for six days of work at the rate of $220 per day. Dec. 14 Notified by Sanchez Engineering Co. that Best Bytes' bid of $7,100 on a proposed project has been accepted. Sanchez paid a $1,550 cash advance to Best Bytes. Dec 15 Purchased $1,700 of computer supplies on credit from Ryan Office Products. Dec. 16 Sent a reminder to Marshall Co. to pay the fee for services recorded on November 8. Dec. 20 Completed a project for Fox Corporation and received $6,800 cash. Dec. 22- Took the week off for the holidays. 26 Dec. 28 Received $3,800 cash from Marshall Co. on its receivable. Dec. 29 Reimbursed K. Perry for business automobile mileage (700 miles at $0.32 per mile). Dec. 31 The company paid $1,900 cash in dividends. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months: a. The December 31 inventory count of computer supplies shows $1,060 still available. b. Three months have expired since the 12-month insurance premium was paid in advance. C. As of December 31, Sandy Perry has not been paid for four days of work at $220 per day. d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value. f. Three of the four months' prepaid rent has expired. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income General Journal tab Prepare journal entries for each of the December transactions. Then, using the information given for adjustments, prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the general ledger and trial balance for accuracy. 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 trial balance by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. Income Statement tab - 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. Statement of Retained Earnings tab - The unadjusted or adjusted balances will appear for each account, based on your selection. Balance Sheet tab - 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. 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 Journal Trial Balance Balance Ledger Statement Earnings The unadjusted or adjusted balances will appear for each account, based on your selection. Unadjusted BEST BYTES Statement of Retained Earnings For Three Months Ended December 31, 2019 Retained earnings, October 1, 2019 $ Add: Net income Less: Dividends Retained earnings, December 31, 2019 (5,700) Income Statement Balance Sheet > Unadjusted BEST BYTES Balance Sheet December 31, 2019 ASSETS Current assets: $ 0 0 0 0 0 0 Plant assets: oo Total plant assets LIABILITIES AND EQUITY Liabilities: $ 0 0 0 0 Equity: 0 0 The November 30, 2018, unadjusted trial balance of Best Bytes is found in the Trial balance tab. Best Bytes had the following transactions and events in December 2018. Dec. 2 Paid $1,060 cash to Lakeview Mall for Best Bytes' share of mall advertising costs. Dec. 3 Paid $520 cash for minor repairs to the company's computer. Dec. 4 Received $6,000 cash from Sanchez Engineering Co. for the receivable from November. Dec. 10 Paid cash to Sandy Perry for six days of work at the rate of $220 per day. Dec. 14 Notified by Sanchez Engineering Co. that Best Bytes' bid of $7,100 on a proposed project has been accepted. Sanchez paid a $1,550 cash advance to Best Bytes. Dec 15 Purchased $1,700 of computer supplies on credit from Ryan Office Products. Dec. 16 Sent a reminder to Marshall Co. to pay the fee for services recorded on November 8. Dec. 20 Completed a project for Fox Corporation and received $6,800 cash. Dec. 22- Took the week off for the holidays. 26 Dec. 28 Received $3,800 cash from Marshall Co. on its receivable. Dec. 29 Reimbursed K. Perry for business automobile mileage (700 miles at $0.32 per mile). Dec. 31 The company paid $1,900 cash in dividends. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months: a. The December 31 inventory count of computer supplies shows $1,060 still available. b. Three months have expired since the 12-month insurance premium was paid in advance. C. As of December 31, Sandy Perry has not been paid for four days of work at $220 per day. d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value. e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value. f. Three of the four months' prepaid rent has expired. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income General Journal tab Prepare journal entries for each of the December transactions. Then, using the information given for adjustments, prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the general ledger and trial balance for accuracy. 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 trial balance by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. Income Statement tab - 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. Statement of Retained Earnings tab - The unadjusted or adjusted balances will appear for each account, based on your selection. Balance Sheet tab - 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. 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 Journal Trial Balance Balance Ledger Statement Earnings The unadjusted or adjusted balances will appear for each account, based on your selection. Unadjusted BEST BYTES Statement of Retained Earnings For Three Months Ended December 31, 2019 Retained earnings, October 1, 2019 $ Add: Net income Less: Dividends Retained earnings, December 31, 2019 (5,700) Income Statement Balance Sheet > Unadjusted BEST BYTES Balance Sheet December 31, 2019 ASSETS Current assets: $ 0 0 0 0 0 0 Plant assets: oo Total plant assets LIABILITIES AND EQUITY Liabilities: $ 0 0 0 0 Equity: 0 0