Question

Gonzalez Technical Institute (GTI ), a school owned by Maria Gonzalez, provides training to individuals who pay tuition directly to the schoolGTI also offers training to groups in off site locations. Its unadjusted trial balance as of December 31, is found on the trial balance tab . GTI initially records prepaid expenses and unearned revenues in balance sheet accountsDescriptions of items a through h that require adjusting entries on December 31 a. An analysis of GTI’s insurance policies shows that $2.600 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,960 are available at year -end. c. Annual depreciation on the equipment is $7,200 . d. Annual depreciation on the professional library is $10,600 . e. On September GTI agreed to do five courses for a client for $3,200 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $16,000 cash in advance for all five courses on September 1 , and GTI credited Unearned Training Fees. f. On October 15 GTI agreed to teach a four -month class ( beginning Immediately ) for an executive with payment due at the end of the class . At December 31 $9.500 of the tuition has been earned by GTI g. 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 .

GLO302 - Based on Problem 3-3A LO P1, P2, P3, P4, P6 Gonzalez Technical Institute (GTI), a school owned by Maria Gonzalez, provides training to individuals who pay tuition directly to the school. GTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, is found on the trial balance tab. GTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31. a. An analysis of GTI's insurance policies shows that $2,600 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,960 are available at year-end. C. Annual depreciation on the equipment is $7,200. d. Annual depreciation on the professional library is $10.600. e. On September 1, GTI agreed to do five courses for a client for $3,200 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $16,000 cash in advance for all five courses on September 1, and GTI credited Unearned Training Fees. f. On October 15, GTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $9,500 of the tuition has been earned by GTI. 9. GTI'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 Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet Impact on income For transactions a-h, 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".

Answer 1

Since Unadjusted trial balance was not given, value for supplies expense and Rent expense could not be calculated.
Teaching Supplies Expense = Teaching Supplies (Trial Value) - $2960
Rent Expense = Prepaid Rent

	Account Titles	Debit	Credit
a	Insurance Expense	$              2,600
	Prepaid Insurance		$            2,600
b	Teaching Supplies Expense
	Teaching Supplies
c	Depreciation Expense-Equipment	$              7,200
	Accumulated Depreciation-Equipment		$            7,200
d	Depreciation Expense-Professional Library	$            10,600
	Accumulated Depreciation-Professional Library		$          10,600
e	Unearned Training Fee	$              6,400
	Training fees earned		$            6,400
f	Accounts Receivable	$              9,500
	Tuition fees earned		$            9,500
g	Salaries Expense	$                 720
	Salaries Payable		$               720
h	Rent Expense
	Prepaid Rent