Question

GLO302 - Based on Problem 3-3A LO P1, P2, P3, P4, P5, P6 K. Perry (Withdrawals), a school owned by Kathy Perry, 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 that require adjusting entries on December 31 follow, a. An analysis of Withdrawals's insurance policies shows that $2,850 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,880 are available at year-end. c. Annual depreciation on the equipment is $3,800. d. Annual depreciation on the professional library is $7,000. 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 $2,800, 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, $4,200 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 $240 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December Na Account Title Credit Date Dec 31 Debit 2,850 / 1 Insurance expense Prepaid insurance 28 Adjusted 1 2 Dec 31 5,470 Teaching supplies expense Teaching supplies Type to enter text 1 3 Dec 31 3,800 Depreciation expense - Equipment Accumulated depreciation - Equipment 4 Dec 31 7,000 K. Perry Income Statement 5,4 For Year Ended December 31, 2019 Revenues Tuition fees earned Ps 131,200 3,8 Training fees earned 51,100 0 Total revenues 7,0 Expenses Insurance expense 2.850 Teaching supplies expense 5,470 5.6 Depreciation expense - Professional library 7,000 Salaries expense 52. 160 Rent expense 50.400 4.2 Depreciation expense - Equipment 3,800 0 $ Depreciation expense - Professional library Accumulated depreciation - Professional library 182,300 5 Dec 31 5,600 Uneamed training fees Training fees earned 6 Dec 31 4,200 Accounts receivable Tuition fees earned 7 Dec 31 960 Salaries expense Salaries payable 9 0 0 0 0 , 8 Dec 31 4,200 Rent expense Prepaid rent Total expenses Net Income 121.680 60,620 $ 4.2 Impact on net income $ (2,850) (5,470) (3,800) Adjusted Account affecting the: Adjusting entry related to: Income statement Balance Sheet a. Insurance Insurance expense Prepaid insurance b. Teaching supplies Teaching supplies expense Teaching supplies c. Depreciation - equipment Depreciation expense- Accumulated depreciation - Equipment Equipment d. Depreciation - library Depreciation expense Accumulated depreciation - Professional Professional library library e. Training fees Training fees earned Unearned training fees f. Tuition Tuition fees earned Accounts receivable g. Salaries Salaries expense Salaries payable h. h. Rent Rent expense Prepaid rent Total impact on income due to adjustments Net income before adjustments Net income after adjustments (7,000) 5,600 4,200 (960) (4,200) (14,480) 75,100 70,290 $ $

It is saying my net income before and after adjustments are both wrong for the last picture, but is saying my stuff is correct every where else.

Answer 1

Your stuff and calculations are all correct also your net income before and after adjustment are also correct.

All the best. .