Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ch3-14 just needing help with the impact on income section. GL0302 (Algo) - Based on Problem 3-3A LO P1, P2, P3, P4, P5 Gonzalez Technical
ch3-14
GL0302 (Algo) - Based on Problem 3-3A LO P1, P2, P3, P4, P5 Gonzalez Technical Institute (GTI), a school owned by Maria Gonzalez, provides training to individuals who pay tuition directly to the school. GTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, is found on the trial balance tab. GTI 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 GTI's Insurance policies shows that $2,600 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,960 are available at year-end. c. Annual depreciation on the equipment is $7,200. d. Annual depreciation on the professional library is $10,600. e. On September 1, GTI 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 GTI credited Unearned Training Fees. f. On October 15, GTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $9,500 of the tuition has been earned by GTI. 9. GTI's two employees are paid weekly. As of the end of the year, two days' solaries have accrued at the rate of $180 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December General Journal Trial Balance General Ledger Balance Sheet Income Statement St Owner Equity Requirement 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.) Adjusted Account affecting the: Income statement Balance Shoot Impact on net income Adjusting entry related to: a. Insurance b. Teaching supplies c. Depreciation - equipment d. Depreciation - library e. Training fees f. Tuition Salaries h. Rent Total Impact on income due to adjustments Net income before adjustments Net income after adjustments $ 0 0 just needing help with the impact on income section.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started