GLO302 - Based on Problem 3-3A LO A1, P1, P3 Lee Technical Institute (LTD, a school owned by Edward Lee, provides training to individuals who pay tuition directly to the school. LTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, is found on the trial balance talb. LTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow a. An analysis of LTI's insurance policies shows that $2.500 of coverage has expired b. An inventory count shows that teaching supplies costing $2.880 are available at year-end 2017 c. Annual depreciation on the equipment is $8.400. d. Annual depreciation on the professional library is $9.800. e. On November 1. LTi agreed to do a special six-month course (starting immediately) for a client The contract calls for a monthly fee of $2.800, and the client paid the first five months tees in advance. When the cash was received, the Unearned Training account was credited. The fee for the sixth month will be recorded when it is collected in 2018. f. On October 15, LTI agreed to teach a four-month class (beginning immediately) for an individual for $3,400 tuition per month payable at the end of the class. The class started on October 15. but no payment has yet been received. (LTi's accruals are applied to the nearest half-month: for example, October recognizes one-half month accrual.) g. LT's two employees are paid weekly As of the end of the year two days salaries have accrued at the rate of $140 per day for each employee h. The balance in the Prepaid Rent account represents rent for December. GeneralG Journal ome St Owner Balance Sheet income Statement General Trial Balance Requirement Impact orn Ledger Thal Balance For transactions a-h, 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 GLO302 - Based on Problem 3-3A LO A1, P1, P3 Lee Technical Institute (LTD, a school owned by Edward Lee, provides training to individuals who pay tuition directly to the school. LTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, is found on the trial balance talb. LTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow a. An analysis of LTI's insurance policies shows that $2.500 of coverage has expired b. An inventory count shows that teaching supplies costing $2.880 are available at year-end 2017 c. Annual depreciation on the equipment is $8.400. d. Annual depreciation on the professional library is $9.800. e. On November 1. LTi agreed to do a special six-month course (starting immediately) for a client The contract calls for a monthly fee of $2.800, and the client paid the first five months tees in advance. When the cash was received, the Unearned Training account was credited. The fee for the sixth month will be recorded when it is collected in 2018. f. On October 15, LTI agreed to teach a four-month class (beginning immediately) for an individual for $3,400 tuition per month payable at the end of the class. The class started on October 15. but no payment has yet been received. (LTi's accruals are applied to the nearest half-month: for example, October recognizes one-half month accrual.) g. LT's two employees are paid weekly As of the end of the year two days salaries have accrued at the rate of $140 per day for each employee h. The balance in the Prepaid Rent account represents rent for December. GeneralG Journal ome St Owner Balance Sheet income Statement General Trial Balance Requirement Impact orn Ledger Thal Balance For transactions a-h, 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