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GLO302 - Based on Problem 3-3A LO P1, P2, P3, P4, P5, P6 Adams Technical Institute (ATI), a school owned by Leslle Adams, provides training

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GLO302 - Based on Problem 3-3A LO P1, P2, P3, P4, P5, P6 Adams Technical Institute (ATI), a school owned by Leslle Adams, provides training to individuals who pay tuition directly to the school. ATI 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. ATI 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 Atl's Insurance policies shows that $2,450 of coverage has expired. b. An Inventory count shows that teaching supplies costing $3,280 are available at year-end. c. Annual depreciation on the equipment is $5,600. d. Annual depreciation on the professional library is $10,600. e. On November 1, ATI 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, f. On October 15, ATI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $10,000 of the tuition has been earned by ATI. 9. Ati's two employees are paid weekly. As of the end of the year, two days' salates have accrued at the rate of $240 per day for h. The balance in the Prepaid Rent account represents rent for December 1 General Ledger Balance Sheet Income Statement General Journal Impact on income St Retained Earnings Tral Balance Requirement 15 points 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.) Show less Impact on net income Adjusted Account adfecting the Adjusting entry related to: Income statement Balance Sheet a Insurance Insurance expense Prepaid insurance b. Teaching supplies Teaching supplies expense Teaching supplies c. Depreciation - Depreciation expense Accumulated depreciation equipment Equipment Equipment d. Depreciation - library Depreciation expense Accumulated depreciation Professional library Professional library e Training fees Training fees eamed Unearned training fees Tuition Tuition fees eamed 'Accounts receivable 9. Salaries Salaries experise Salaries payable h. Rent Rent expense Prepaid rent Total impact on income due to adjustments Net income before adjustments Net income after adjustments OOOOOOOO $ 0 0

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