Carter Technical Institute (CTI), a school owned by Isaac Carter, provides training to individuals who pay tuition directly to the school. CTI 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. CTI 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 CTI's insurance policies shows that $2,450 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,560 are available at year-end. c. Annual depreciation on the equipment is $5,400. d. Annual depreciation on the professional library is $10,200. e. On November 1, CTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $3,200, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited, 1. On October 15, CTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $4,000 of the tuition has been earned by CTI 9. Tos two employees are paid weekly. As of the end of the year, two days salaries have accrued at the ratq of $180 per day for each h. The balance in the Prepaid Rent account represents rent for December Bal General Journal General Ledger Trial Balance Requirement St Retained Earnings Income Statement Use the drop-downs to select the accounts properly included on the income stat balances will appear for each account, based on your selection. Adjusted Carter Technical Institute Income Statement For Year Ended December 31, 2019 Assets $ OOO + 0 0 0 0 0 0 0 0 0 0 Net income Trial Balance St Retained Earnings > View transaction list View journal entry worksheet No Date Account Title Debit Credit 1 Dec 31 Insurance expense Prepaid insurance 2,450 2,450 2 Dec 31 Teaching supplies expense Teaching supplies 3,560 3,560 3 Dec 31 10,200 Depreciation expense - Equipment Accumulated depreciation - Equipment 10,200 4 Dec 31 5,400 Depreciation expense - Professional library Accumulated depreciation - Professional library 5,400 ch Dec 31 Unearned training fees Training tees earned 6,400 6,400 O Dec 31 Accounts receivable Tuition fees earned 4,000 4,000 7 Dec 31 Salaries expense Salaries payable 720 720 8 Dec 31 Rent expense Prepaid rent 720 720 Adjusted General Ledger Account Cash Accounts receivable No. Date Debit Credit No. Date Debit Credit Balance Balance 67,050 Dec 31 0 Dec 31 Dec 31 6 4,000 4.000 Teaching supplies Debit Credit No. Prepaid insurance Debit Credit Date Balance No. 14 Dec 31 Dec 31 Date Dec 31 Dec 31 8,950 5,390 Balance 7,350 4,900 2 3,560 1 2,450 Prepaid rent No. Professional library Debit Credit Debit Credit No. Date Dec 31 Dec 31 Balance 4,000 3,280 Date Dec 31 Balance 51,000 720 No. Accumulated depreciation - Professional library Date Debit Credit Balance Dec 31 20,400 Dec 31 5,400 25,800 No. Equipment Debit Date Dec 31 Credit Balance 54,000 Accounts payable No. Accumulated depreciation - Equipment Date Debit Credit Dec 31 Dec 31 10,200 No. Debit Balance 10,800 21,000 Date Dec 31 Credit Balance 34,400 3 Salaries navale Lineamed training for Salaries payable Debit Credit Unearned training fees Debit Credit No. Date Balance No. Dec 31 Dec 31 Date Dec 31 Dec 31 0 720 Balance 16,000 9,600 7 720 5 6,400 Common stock Retained earnings No. Debit Date Dec 31 Credit Credit No. Balance 7,000 Debit Credit Date Dec 31 Balance 91,000 Dividends No. Debit Date Dec 31 Credit Tuition fees earned Debit Credit No. Balance 51,800 Date Dec 31 Dec 31 Balance 127,000 131,000 6 4,000 Training fees earned Debit Credit No. No. Date Dec 31 Dec 31 Balance 45,500 51,900 Depreciation expense - Professional library Date Debit Credit Balance Dec 31 0 Dec 31 5,400 5,400 6,400 Depreciation expense - Equipment Salaries expense No. Debit Credit No. Debit Credit Date Dec 31 Dec 31 Balance 0 10.200 Date Dec 31 Dec 31 3 10,200 Balance 51,000 51,720 720 Insurance expense Rent expense No. Debit Credit Balance No. Date Dec 31 Dec 31 Debit Credit Date Dec 31 Dec 31 1 0 2,450 2,450 Balance 44,000 44,720 8 720 Insurance expense Rent expenso No. Debit Credit No. Debit Credit Date Dec 31 Dec 31 Balance 0 2,450 Date Dec 31 Dec 31 Balance 44,000 44.720 2 1 2,450 8 720 Teaching supplies expense Debit Credit Advertising expense Debit Credit No. Balance No. Date Date Dec 31 Dec 31 Balance 6,200 0 Dec 31 2 3,560 3,560 Utilities expense Debit Credit No. Date Dec 31 Balance 6,750 Carter Technical Institute Trial Balance December 31, 2019 Debit Credit Account Title $ 67,050 4,000 5,390 4.900 3,280 51.000 25,800 54,000 21,000 34,400 720 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation - Equipment Accounts payable Salaries payable Unearned training fees Common stock Retained earnings Dividends Tuition fees eamed Training fees earned Depreciation expense - Professional library Depreciation expense - Equipment Salaries expense insurance expense Rent expense Teaching supplies expense 9,600 7,000 91,000 51,800 131.000 51,900 5,400 10,200 51,720 2.450 44,720 3,560 enn $ 67,050 4,000 5,390 4,900 3,280 51,000 25,800 54,000 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation - Equipment Accounts payable Salaries payable Unearned training fees Common stock Retained earings Dividends 21,000 34,400 720 9,600 7,000 91,000 51,800 131,000 51,900 A 1 Tuition fees eamed Training fees earned Depreciation expense - Professional library Depreciation expense - Equipment Salaries expense insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Total 5,400 10,200 51,720 2,450 44,720 3,560 6,200 6.750 372,420 S 372,420 Balance Sheet General Journal General Ledger Trial Balance Income Statement St Retained Earnings Requirement Use the drop-downs to select the accounts properly included on the income statement. The u balances will appear for each account, based on your selection. Adjusted Carter Technical Institute Income Statement For Year Ended December 31, 2019 Assets $ 0 0 0 0 0 0 0 0 0 0 0 0 0 Net income Trial Balance General Journal Trial Balance General Ledger Income Statement Ba St Retained Earnings Requirement The unadjusted or adjusted balances will appear for each account, based on your selectic Adjusted Carter Technical Institute Statement of Retained Earnings For Year Ended December 31, 2019 Retained earings, December 31, 2019 Add: Net income Less: Dividends Retained earnings, December 31, 2019 91,000 $ (51,800) 91,000 $ 0 0 0 0 $ 0 Plant assets $ 0 0 0 0 0 0 0 0 $ 0 Liabilities Current liabilities $ 0 0 0 0 $ o Equity 0 $ 0 Requirement General Journal General Ledger Trial Balance Income Statement St 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 not income Adjusted Account affecting the: Adjusting entry related to: Income statement Balance Sheet a Insurance b. Teaching supplies C. Depreciation - equipment d. Depreciation - library o. Training foes 1. Tuition 9. Salaries h. Rent Total impact on income due to adjustments Net income before adjustments Not income after adjustments $ 0 0