Allen Technical Institute (ATI), a school owned by Susan Allen, provides training to individuals who pay tuition directly to the school. ATI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, is found on the trial balance tab. ATI 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 ATI's Insurance policies shows that $2,650 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,440 are available at year-end. C. Annual depreciation on the equipment is $6,400. d. Annual depreciation on the professional library is $12,200. e. On September 1, ATI agreed to do five courses for a client for $2,600 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 $13,000 cash in advance for all five courses on September 1, and ATI credited Unearned Training Fees. f. On October 15, ATI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $8,500 of the tuition has been earned by ATI 9. ATI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $220 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December General Journal General Ledger Requirement Trial Balance Income Statement Balance Sheet St Owner Equity Impact on Income General Journal tab - For transactions a-h, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the financial statements for accuracy General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Trial Balance tab - You may view either the unadjusted or adjusted trial balance by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection. Statement of Owner's Equity tab - The unadjusted or adjusted balances will appear for each account, based on your selection. Balance Sheet tab - Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Impact on Income tab - For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.) Regulament General Journal > Requirement General General Income St Owner Impact on Journal Ledger Trial Balance Balance Sheet Statement Equity 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". View transaction list Journal entry worksheet Requirement General General Income Journal Trial Balance St Owner Ledger Impact on Statement Balance Sheet Equity Income Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Unadjusted General Ledger Account Cash Teaching supplies Debit Credit No. Debit Credit Date Dec 31 No. Balance 52,425 Date Dec 31 Balance 8,800 Prepaid rent Prepaid insurance Debit Credit No. No. Debit Credit Date Dec 31 Balance 7,950 Date Dec 31 Balance 3,400 Professional library Debit Credit No. No Date Dec 31 Balance 61,000 Accumulated depreciation - Professional library Date Debit Credit Balance Dec 31 24.400 Equipment Debit No. Accumulated depreciation - Equipment Date Debit Credit Dec 31 Credit No. Date Dec 31 Balance 84,000 Balance 12,800 Accounts payable Uneamed training fees Debit Credit No. Debit Credit No. Credit Date Dec 31 Balance 30,800 Date Dec 31 Balance 13,000 5. Allen, Capital S. Allen, Withdrawals Debit Credit No. Debit No. Credit Date Dec 31 Balance 92,000 Date Dec 31 Balance 50,900 General General Requirement Income St Owner Impact on Journal Ledger Tpal Balance Statement Balance Sheet Equity income You may view either the unadjusted or adjusted trial balance by choosing from the drop-down box below. Your choice will determine the reported values on the financial statement tabs. Unadjusted Allen Technical Institute Trial Balance December 31, 2019 Credit $ Debit 52,425 8,800 7,950 3,400 61,000 24,400 64,000 Account Title Cash Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation - Equipment Accounts payable Unearned training fees s. Allen, Capital S. Allen, Withdrawals Tuition fees eamed Training fees earned Salaries expense Rent expense Advertising expense Utilities expense Total 12,800 30,800 13,000 92,000 50,900 132,000 44,000 50,400 37,400 6,125 6,600 349,000 S $ 349,000 Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet Impact on Income The unadjusted or adjusted balances will appear for each account, based on your selection. Unadjusted Allen Technical Institute Statement of Owner's Equity For Year Ended December 31 S. Allen, Capital, December 31 prior year end Add: Net income Less: Withdrawals by owner S. Allen, Capital, December 31 current year end 92,000 (50,900) 41,100 $ Income Statement Balance Sheet> General Requirement General Income St Owner Trial Balance Journal Impact on Ledger Balance Statement Equity sheet income Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Include all balance sheet accounts, even those with zero balances. Unadjusted Allen Technical Institute Balance Sheet December 31 Assets Current assets Plant assets Liabilities Current liabilities Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet Impact on income For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net Income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the drop-down.) Show less Unadjusted Account affecting the: Income statement Balance Sheet Impact on net income Adjusting entry related to: a. Insurance b. Teaching supplies c. Depreciation - equipment d. Depreciation - library e. Training fees f. Tuition 9. Salaries h. Rent Total impact on income due to adjustments Net income before adjustments Net income after adjustments Impact on income