Question

1. On September 1, 2020, a student paid $6,000 for tuition for the academic year to his college (half for fall 2020 and half for spring 2021). Provide all necessary journal entries for the student in 2020. 2. The following trial balance was taken from the books of Fisk Corporation on December 31, 2019 Credit Debit $ 8,000 40,000 10,000 $ 1,800 44,000 4,800 110,000 Account Cash Accounts Receivable Notes Receivable Allowance for Doubtful Accounts Inventory Prepaid Insurance Equipment Accumulated Depreciation--Equip. Accounts Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Salaries and Wages Expense Rent Expense Totals 15,000 9,800 44,000 55,000 280,000 126,000 50,000 12.800 $405.600 $405.600

Answer 1

1)

Date	Account	Debit $	Credit $
9/1/2020	Prepaid Tuition Fees	6,000.00
	Cash		6,000.00
12/31/2020	Tuition Fees Expense	3,000.00
	Prepaid Tuition Fees		3,000.00

2)

	Journal Entries
	Accounting titles & Explanations	Debit	Credit
a.	insurance expense	2,000
	prepaid insurance		2,000
b.	Bad debts expense	2800
	Allowance for Doubtful accounts		2,800
	(280,000*1%)
c.	Depreciation expense	5500
	Accumulated depreciation (110000*5%)		5500
d.	interest receivable	500
	interest income (10,000*5%)		500
e.	Rent paid in advance	5,400
	Rent expense		5,400
f.	Salaries expense	5,800
	Salaries payable		5,800
	Adjusting closing entries
	Accounting titles & Explanations	Debit	Credit
	Sales	280,000
	interest income	500
	income summary		280,500
	cost of good sold	126,000
	insurance expense	2,000
	Bad debts expense	2,800
	Depreciation expense	5,500
	rent expense	7400
	Salaries expense	55800
	income summary		199,500
	income summary	81,000
	Retained Earnings		81,000

Beginning Retained earnings	55,00
Add: Net income	81,000
Ending Retained earnings	136,000