Ele Edit View Insert Format Iools Data accounting Window Heb 21313 100% / A Arial 10 DIUS% Q B 1 2 3 Cash 4 ALJAZEERA INSTITUTE Unadjusted Trial Balance December 31, 2015 Debit Credit $ 60,000 Accounts receivable 5 Teaching supplies 70,000 6 Prepaid insurance 19,000 7 Prepaid rent 3,800 8 Professional library 12,000 9 Accumulated depreciation-Professional library $ 2,500 10 Equipment 40,000 11 Accumulated depreciation-Equipment 20,000 12 Accounts payable 13 Salaries payable 14 Unearned training fees 15 C. Aljazeera, Capital 16 C. Aljazeera, Withdrawals 11,200 0 28,600 71,500 20,000 17 Tuition fees earned 18 Training fees earned 129,200 68,000 19 Depreciation expense-Professional library 0 20 Depreciation expense-Equipment 21 Salaries expense 0 44,200 22 Insurance expense 23 Rent expense 24 Teaching supplies expense 25 Advertising expense 26 Utilities expense 27 Totals 28 0 29,600 0 19,000 13,400 $ 331,000 $331,000 QAA P OD page 135 ===== iv V xvi Additional Information Items a. An analysis of the Institute's insurance policies shows that $9,500 of coverage has expired. b. An inventory count shows that teaching supplies costing $20,000 are available at year-end 2015. c. Annual depreciation on the equipment is $5,000. d. Annual depreciation on the professional library is $2,400. e. On November 1, the Institute agreed to do a special five-month course (starting immediately) for a client. The contract calls for a $14,300 monthly fee, and the client paid the first two months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The last two months' fees will be recorded when collected in 2016. f. On October 15, the Institute agreed to teach a four-month class (beginning immediately) to an individual for $2,300 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (The Institute's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) g. 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. h. The balance in the Prepaid Rent account represents rent for December. Required 1. Prepare T-accounts (representing the ledger) with balances from the unadjusted trial balance. Check (2e) Cr. Training Fees Earned, $28,600; (2f) Cr. Tuition Fees Earned, $5,750; (3) Adj. trial balance totals, $344,600; (4) Net income, $54,200; Ending Aljazeera, Capital, $105,700 2. Prepare the necessary adjusting journal entries for items a through h, and post them to the T-accounts. Assume that adjusting entries are made only at year-end. 3. Update balances in the T-accounts for the adjusting entries and prepare an adjusted trial balance. 4. Prepare the company's income statement and statement of owner's equity for the year 2015, and prepare its balance sheet as of December 31, 2015. xvii Problem 3-4B