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GL 0 3 0 2 ( Algo ) - Based on Problem 3 - 3 A LO P 1 , P 2 , P 3
GLAlgo Based on Problem A LO P P P P P
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 offsite locations. Its unadjusted trial balance as of December is found on the trial balance tab. GTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through that require adjusting entries on December follow.
a An analysis of GTI's insurance policies shows that $ of coverage has expired.
b An inventory count shows that teaching supplies costing $ are available at yearend.
c Annual depreciatiofio on the equipment is $
d Annual depreciation on the professional library is $
e On November GTI agreed to do a special sixmonth course starting immediately for a client. The contract calls for a monthly fee of $ 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 GTI agreed to teach a fourmonth class beginning immediately for an executive with payment due at the end of the class. At December $ of the tuition has been earned by GTI.
g GTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $ per day for each employee.
h The balance in the Prepaid Rent account represents rent for December.
tableRequirementtableGeneralJournaltableGeneralLedgerTrial Balance,tableIncomeStatementtableSt of RetainedEarningsBalance Sheet,tableImpact onincome
For transactions ah review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger and trial balance as soon as you click "record entry".
Journal entry worksheet
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