ALONZO INSTITUTE Adjusted Trial Balance Cash December 31,202 Accounts receivable Teaching supplies Debit $60,000 Credit Prepaid insurance Prepaid rent Professional library Accumulated depreciationProfessional library Equipment Accumulated depreciation-Equipment. Accounts payable Salaries payable Unearned revenue. C. Alonzo, Capital. C. Alonzo, Withdrawals Tuition revenue. 12,000 40,000 Training revenue 11,200 Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense. Utilities expense 19,000 Totals Date Journal General Form - Posting Sheet Recatited: After preparing the adjusting entries, prepare an adjusted trial balance as of December 31,202. using the attached adjusted trial balance. Instructions: 1. Prepare the necessary adjusting journal entries for each item in a through h on page 2 to the Journal General form on page 3. 2. Using page 1, Unadjusted Trail Balance, post the adjusted journal entries to the accounts on the Adjusted Trail Balance, page 4 to show the revised amounts. 3. Using the Adjusted Trail Balance, from page 4, prepare the Income Statement and Statement of Owner's Equity, page 5. 4. Finally, prepare the balance sheet, page 6. Prepare the necessary adjusting journal entries for each item in a through h on the Journal General Form. a. An analysis of the Institute's insurance policies shows that $9,500 of insurance coverage has expired. b. An inventory count shows that teaching supplies worth $20,000 are available at year-end. c. Annual depreciation on the equipment is $5,000. d. The Institute's only employee is paid weekly. As of the end of the year, three days' salaries have accrued at the rate of $150 per day. e. The balance in the Prepaid Rent account represents rent for December. f. On October 15 , the Institute agreed to teach a four-month class (beginning immediately) to an executive with payment due at the end of the class. On December 31,$5,750 of the tuition revenue has been earned by the Institute. g. On November 1 , the Institute agreed to do a special two -month training course (staring immediately) for a client. The contract calls for a $14,300 monthly fee, and the client paid the two months' training fees in advance. When the cash was received, the Unearned revenue account was credited. h. Annual depreciation on the professional library is $2,400. Prepare an income statement from the adjusted trial balance. ALONZO INSTITUTE Income Statement For Year Ended December 31 Revenues Tuition revenue Training revenue Total revenues Expenses Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Total expenses Net income $ s. : Prepare a Statement of Owners Equity ALONZO INSTITUTE Statement of Owner's Equity For Year Ended December 31 C. Alonzo, Capital, Dec. 31 prior year Plus: Investments by owner. Net income Total Less: Withdrawals by owner C. Alonzo, Capital, Dec. 31 current year ALONZO INSTITUTE Unadjusted Trial Balance December 31,202 Cash................. Account Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue C. Alonzo, Capital C. Alonzo, Withdrawals. Tuition revenue. Training revenue Debit Credit $60,000 Depreciation expenseProfessional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 70,000 19,000 3,800 12,000 \$ 2,500 40,000 20,000 11,200 0 28,600 71,500 20,000 129,200 68,000 0 0 44,200 0 29,600 0 19,000 13,400 $331,000 $331,000 Prepare a balance shnot c
