Question

GLO302 - Based on Problem 3-3A LO P1, P2, P3, P4, P5, P6 . OR T. Nguyen (Withdrawals), a school owned by Than Nguyen, provides training to individuals who pay tuition directly to the school. Withdrawals also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2018, is found on the trial balance tab. Withdrawals initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31 follow. 2. An analysis of Withdrawals's insurance policies shows that $2,950 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,960 are available at year-end. c. Annual depreciation on the equipment is $4,200. d. Annual depreciation on the professional library is $7,800. e. On November 1, Withdrawals agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $3,200, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. f. On October 15, withdrawals agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $3,200 of the tuition has been earned by Withdrawals. g. Withdrawals's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $180 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December. ences Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income For transactions ah, 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 View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 > An analysis of Withdrawals's Insurance policies shows that $2,950 of coverage has expired Note Erter debits before credits

Answer 1

T.Nguyen Worksheet For the period ending 31.12.2017 Adjusting Enteries Trans. Particulars a. Insurance Expense Prepaid Insurance (Insurance expired) Debit in $ Credit in $ 2950 2950 b. 5490 Supplies Expense Teaching Supplies (Supplies used) 5490 c. 4200 Depreciation Expense Accum.Depre - Equip, (To record depreciation) 4200 d. 7800 Depreciation Expense Accum.Depre - Prof.Lib. (To record depreciation) 7800 Particulars Cash Accounts Receivable Teaching Supplies Prepaid Insurance Prepaid Rent Professional Library Accum.Depre - Prof.Lib. Equipment Accum.Depre - Equip, Accounts Payable Salaries Payable Unearned Training Fees Common Stock Retained Earnings Dividends Tution Fees earned Training Fees Earned Salaries Expense Rent Expense Advertising Expense Utility Expense Insurance Expense Supplies Expense Depreciation Expense Totals Unadjusted Adjustments Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 81025 81025 3200 3200 9450 5490 3960 11800 2950 8850 3200 3200 0 39000 39000 15600 7800 23400 42000 42000 8400 4200 12600 32000 32000 720 720 16000 6400 9600 12000 12000 86000 86000 54800 54800 129000 3200 132200 42500 6400 48900 51600 720 52320 35200 3200 38400 6175 6175 7250 7250 2950 2950 5490 5490 12000 12000 341500 341500 33960 33960 357420 357420 e. 6400 Unearned Training Fees Training Fees Earned (Revenue earned) 6400 f. 3200 Accounts Receivable Tution Fees earned (Revenue earned) 3200 g. 720 Salaries Expense Salaries Payable (Salary accrued) 180 x 2 x 2 720 h. 3200 Rent Expense Prepaid Rent (Rent expired) 3200

Amounts in $ Amounts in $ Amounts in $ Amounts in $ 132200 48900 Balancesheet As at 31.12.2017 Assets Current Assets Cash Accounts Receivable Teaching Supplies Prepaid Insurance 181100 Statement of Income For the period ending 31.12.2017 Tution Fees earned Training Fees Earned Total Revenue Less: Salaries Expense Rent Expense Advertising Expense Utility Expense Insurance Expense Supplies Expense Depreciation Expense Net Income 81025 3200 3960 8850 Liabilities Current Liabilities Accounts Payable Salaries Payable Unearned Training Fees 97035 32000 720 9600 42320 52320 38400 6175 7250 2950 5490 Non Current Assets Professional Library Accum.Depre - Prof.Lib. Equipment Accum.Depre - Equip, Total Assets 39000 -23400 42000 - 12600 12000 124585 56515 15600 Shareholders Equity Common Stock 29400 Retained Earnings 142035 Total Liabilities & Equity 12000 87715 99715 142035 Statement of Retained Earnings For the period ending 31.12.2017 Beginning Balance Net Income 86000 56515 Less:Dividends 142515 -54800 87715 -4200 Account effecting the: Adjusting Entry related to: Income Stat. Balance sheet Impact on Net Income a.Insurance Insurance Expense Prepaid Insurance -2950 b.Teaching Supplies Supplies Expense Teaching Supplies -5490 c.Depreciation - Equip. Depreciation Expen Accum.Depre - Equip, d.Depreciation - Library Depreciation Expen Accum.Depre - Prof.Li - 7800 e.Training fees Training Fees Earne Unearned Training Fe 6400 f.Tutuion Fees Tution Fees earned Accounts Receivable 3200 g. Salaries Salaries Expense Salaries Payable -720 h.Rent Rent Expense Prepaid Rent -3200 Total Impact on income due to adjustments -14760 Net Income before adjustments 71275 Net Income after adjustments 56515