GLO302 - Based on Problem 3-3A LO P1, P2, P3, P4, P5, P6 Sanchez Technical Institute (STI), a school owned by Carlos Sanchez, provides training to individuals who pay tuition directly to the school. STI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2018, is found on the trial balance tab. STI Initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31 follow. a. An analysis of STI's insurance policies shows that $2,700 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,480 are available at year-end. c. Annual depreciation on the equipment is $5,000. d. Annual depreciation on the professional library is $9,400 e. On November 1, STI 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' fees in advance. When the cash was received the Unearned Training Fees account was credited. 1. On October 15, STI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $9,000 of the tuition has been earned by STI. 9. STI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $240 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December Answer is not complete. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income You may view either the unadjusted or adjusted trial balance by choosing from the drop-down box below. Your choice will determine the reported values on the financial statement tabs. Adjusted Sanchez Technical Institute Trial Balance December 31, 2019 Account Title Credit Cash $ Debit 71,850 9,000 8.850 8,100 120 47,000 28,280 50,000 15,000 32,000 960 Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation - Equipment Accounts payable Salaries payable Unearned training fees Common stock Retained earnings Dividends Tuition fees earned Training fees earned Depreciation expense - Professional library Depreciation expense - Equipment Salaries expense insurance expense Rent expense Advertising expense Utilities expense Total 8,400 12.000 94,000 51,200 142,000 50,100 9,480 5,000 51,560 2.700 43,080 6,150 6,650 370,740 $ $ 382,740
