Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

centralpenn.edu%252Fwebapps%252Fpe mework Saved Help Save & E Che GLO302 - Based on Problem 3-3A LO P1, P2, P3, P4, P6 Hall Technical Institute (HTI), a

image text in transcribed

image text in transcribed

centralpenn.edu%252Fwebapps%252Fpe mework Saved Help Save & E Che GLO302 - Based on Problem 3-3A LO P1, P2, P3, P4, P6 Hall Technical Institute (HTI), a school owned by Debbie Hall, provides training to individuals who pay tuition directly to the school. HTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, is found on the trial balance tab. HTI 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 HTI's insurance policies shows that $2,550 of coverage has expired. b. An inventory count shows that teaching supplies' costing $3,360 are available at year-end. c. Annual depreciation on the equipment is $6,000. d. Annual depreciation on the professional library is $11.400. e. On September 1, HTI 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 HTI credited Unearned Training Fees. f. On October 15, HTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $7,500 of the tuition has been earned by HTI. g. HTI'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 Income Trial Balance Ledger St Owner Equity Balance Sheet Statement Impact on income o search a No Date Account Title Debit Credit 1 Dec 31 Insurance expense 2.550 Prepaid insurance 2,550 2 Dea 1 Teaching supplies expertise Teaching supplies IN 3 Deo 31 Depreciation expense Equipment Accumulated depreciation - Equipment 8.000 8.000 4 Dec 31 11.400 Depreciation expense - Professional library Accumulated depreciation Professional library 11.400 5 Dea 21 8.400 Uneamed training fees Training fees earned 2.400 6 Dec 31 7.500 Accounts receivable Tuition fees earned 7.500 7 7 Des 31 720 Salanes expense Salarios payable 720 8 Dec 31 Rent expense Prepaid rent centralpenn.edu%252Fwebapps%252Fpe mework Saved Help Save & E Che GLO302 - Based on Problem 3-3A LO P1, P2, P3, P4, P6 Hall Technical Institute (HTI), a school owned by Debbie Hall, provides training to individuals who pay tuition directly to the school. HTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, is found on the trial balance tab. HTI 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 HTI's insurance policies shows that $2,550 of coverage has expired. b. An inventory count shows that teaching supplies' costing $3,360 are available at year-end. c. Annual depreciation on the equipment is $6,000. d. Annual depreciation on the professional library is $11.400. e. On September 1, HTI 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 HTI credited Unearned Training Fees. f. On October 15, HTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $7,500 of the tuition has been earned by HTI. g. HTI'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 Income Trial Balance Ledger St Owner Equity Balance Sheet Statement Impact on income o search a No Date Account Title Debit Credit 1 Dec 31 Insurance expense 2.550 Prepaid insurance 2,550 2 Dea 1 Teaching supplies expertise Teaching supplies IN 3 Deo 31 Depreciation expense Equipment Accumulated depreciation - Equipment 8.000 8.000 4 Dec 31 11.400 Depreciation expense - Professional library Accumulated depreciation Professional library 11.400 5 Dea 21 8.400 Uneamed training fees Training fees earned 2.400 6 Dec 31 7.500 Accounts receivable Tuition fees earned 7.500 7 7 Des 31 720 Salanes expense Salarios payable 720 8 Dec 31 Rent expense Prepaid rent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis Revised

Authors: Charles T. Horngren, Monte Wynder, William Maguire, Rebecca Tan, Srikant Datar, Lester E. Heitger

1st Australian Edition

1442554770, 978-1442554771

More Books

Students also viewed these Accounting questions

Question

Whats My Comfort with Change?

Answered: 1 week ago