Question

Award: 17:50 points GL0302-Based on Problem 3-3A LO PL, P2, P3, P4, P5, P6 Brown Technical Institute (BT), a school owned by Paul Brown provides aing to individuals who pay tuition directly to the school. BTI offers training to groups in oc casions 31 2018 stund on the balance tab Tiny records prepard expenses and named ones in balance sheet account Descriptions of them a through that require adjusting en on December 31 low An analysis of insurance policies shows that $2 450 of coverage has expired b. An inventory count shows that eaching supplies conting 32.800 are available at year and Annual depreciation on the equipments S200 A depreciation on the professional library is $9.400 On November 1, BTI agreed to do a specialix-month course starting immediate for a dent. The contract calls for a monthly fee of $2.600 and the client paid the first five months in advance. When the cash was received the Uneamed Training Fees account was credited On October 15, BT agreed to teach a four month class beginning immediate for an executive with payment due at the end of the class. At December 31, $3,200 of the tuition has been warned by BTI BTrstwo employees are paid weekly. As of the end of the year two days salaries have accrued at the rate of $120 per day for each employee h The balance in the Prepaid Rent account represents rent for December Requirement General Jounal General Trial Balance Ledger Income Statement Statement St Retained Earings Barance Sheet Impact on income For transactions , review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger and trial balance as soon as you click "record entry". Veron 1 An analysis of BTT's Insurance policies shows that $2,450 of coverage has expired. An inventory count shows that teaching supplies costing $2.340 are available at year-end. Annual depreciation on the equipment is $8,200. Annual depreciation on the professional library is $9.400. c On November BTT agreed to do a special month e (starting med for a dent. The contract for a monthly fee of $2.500, and the dient paid the tivement fees in advance. When the cash received, the reared Tr e escount was Nott u al entry has been entered

Answer 1

Brown Technical Institute (GTI) Adjusting Enteries Date Particulars 31.12.2017 Insurance Expense a/c To Prepaid Insurance (Insurance expensed) Dr. Debit in $Credit in $ 2450 2450 Debit in $ Credit in $ 37125 3200 2960 4900 Dr. 5090 31.12.2017 Teaching supplies expense a/c To Supplies (Supplies expensed) 8050-2840 5090 47000 28200 8200 82000 31.12.2017 |Depreciation expense-Equipment a/c Dr. To Accumulated depreciation Equipment (To record depreciation) 8200 24600 27200 480 7800 9400 Adjusted Trial Balance For the period ending 31.12.2017 Particulars Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation Professional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearned training fees Common Stock Retained Earnings Dividends Tuition fees earned Training fees earned Depreciation expense- Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 31.12.2017 |Depreciation expense-Professional library a/c Dr. | To Accumulated depreciation-Professional library (To record depreciation) 9400 8000 84000 50300 Dr. 5200 31.12.2017 Unearned Training Fees a/c To Training fees earned (Revenue recognized) 2600 x 2 128200 45700 5200 Dr. 3200 31.12.2017 Accounts receivable a/c To Tuition fees earned (Revenue accrued) 3200 9400 8200 50680 2450 38400 5090 6025 6450 354180 31.12.2017 Salaries expense a/c To Salaries payable (Salary expense accrued) 2 x 2 x 120 = 480 480 354180 3200 31.12.2017 Rent Expense a/c To Prepaid Rent (Rent expensed)

Statement of Income For the period ending 31.12.2017 Tuition fees earned Training fees earned 128200 45700 173900 Less: Depreciation expense- Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Net Income 9400 8200 50680 2450 38400 5090 6025 6450 126695 47205 Statement of Retained Earnings For the period ending 31.12.2017 Retained Earnings , December 31, 2019 Add:Net Income 84000 47205 Less:Dividends Retained Earnings , December 31, 2019 131205 -50300 80905

Amounts in $ Amounts in $ Amounts in $ Amounts in $ Balance sheet As at 31.12.2017 Assets Current Assets Cash Accounts receivable Teaching supplies Prepaid insurance 37125 3200 Liabilites & Equity Current Liabilities Accounts payable Salaries payable Unearned training fees 48185 27200 480 7800 2960 35480 4900 Non Current Assets Professional library Accumulated depreciation- Equipment Accumulated depreciation- Total Assets 47000 -28200 82000 -24600 18800 Shareholders Equity Common Stock 57400 Retained Earnings 124385 Total Liabilities & Equity 8000 80905 88905 124385 Impact on Income Account Effecting the Adjusting Entry related to: Income Statement Balance sheet a.Insurance Insurance Expense Prepaid Insurance b.Teaching supplies Supplies Expense Supplies c.Depreciation -Equip. Depreciation Exp. Accum. Depre.-Equip d.Depreciation - library Depreciation Exp. Accum. Depre.-Libr e. Training fees Training fees earned Unearned training fees f.Tution Tuition fees earned Accounts receivable g.Salaries Salaries expense Salaries payable h.Rent Rent Expense Prepaid Rent Total impact on income due to diligence Net income before adjustments Net Income after adjustments Impact on Income -2450 -5090 -8200 -9400 5200 3200 -480 -3200 -20420 67625 47205