Can you re-do this to see if I am right? I am also confused on how to find the net incomes at the end. Thanks!
Perry Technical Institute (PTI), a school owned by Kathy Perry, provides training to individuals who pay tuition directly to the school. PTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2022, is found on the trial balance tab. PTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31 follow. a. An analysis of PTI'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, PTI 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, PTI 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 PTI. g. PTI'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. Requirement General Journal General Ledger Trial Balance Income Statement St of Retained Earnings 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 Impact on net income $ 14.250 9,350 (7,600) Unadjusted Account affecting the: Adjusting entry related to: Income statement Balance Sheet a. Insurance Prepaid insurance b. Teaching supplies Teaching supplies Accumulated depreciation - c. Depreciation - equipment Equipment | Accumulated depreciation - d. Depreciation - library Professional library e. Training fees Training fees earned f. Tuition Tuition fees earned g. Salaries Salaries expense h. Rent Rent expense Total impact on income due to adjustments Net income before adjustments Net income after adjustments (14,000) 45,500 127,000 51,200 46,200 271,900 $ 0 Perry Technical Institute Trial Balance December 31, 2022 Account Title Debit Credit Cash $ 66,025 9,350 14,250 4,200 35,000 14,000 Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation - Equipment Accounts payable Unearned training fees Common stock 38,000 7,600 29,600 14,000 9,000 85,000 Retained earnings Dividends 54,200 Tuition fees earned 127,000 Training fees earned 45,500 Salaries expense 51,200 46,200 Rent expense 6,125 Advertising expense Utilities expense 7,150 Total $ 331,700 $ 331,700 December 31, 2022 Assets Current assets Cash $ 66,025 4,200 Accounts receivable Teaching supplies Prepaid insurance 3,880 11,400 0 0 Total current assets $ 85,505 Plant assets Professional library $ 35,000 0 Professional library, net 35,000 0 0 0 35,000 120,505 Total assets $ Liabilities Current liabilities $ 29,600 Accounts payable Salaries payable Unearned training fees 960 8,400 0 Total liabilities $ 38,960 Equity Common stock 9,000 78,145 Retained earnings Total equity Total Liabilities & Equity 87,145 126,105 $
