GLO302 - Based on Problem 3-3A LO P1, P2, P3, P4, P5, P6 K. Wright (Withdrawals), a school owned by Kay Wright, provides training to Individuals who pay tuition directly to the school. Withdrawals 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. Withdrawals Initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through that require adjusting entries on December 31 follow. a. An analysis of Withdrawals's Insurance policies shows that $2.400 of coverage has expired. b. An Inventory count shows that teaching supplies costing $3,520 are available at year-end. C. Annual depreciation on the equipment is $5,200. d. Annual depreciation on the professional brary is $9,800. e. On November 1, withdrawals agreed to do a special six-month course (starting immediately for a client. The contract calls for a monthly fee of $3,000, and the client paid the first five months' fees in advance. When the cash was received, the Uneamed Training Fees account was credited. t. On October 15, withdrawals agreed to teach a four-month class (beginning immediately for an executive with payment due at the end of the class. At December 31, $3,800 of the tuition has been earned by Withdrawals. 9. Withdrawals's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $150 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income accuracy. General Journal tab - For transactions a-h, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the financial statements for General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Trial Balance tab - You may view either the unadjusted or adjusted trial balance by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection. Statement of Retained earnings tab - The unadjusted or adjusted balances will appear for each account, based on your selection. Balance Sheet tab - Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Impact on Income tab - 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 dropdown.) Requirement General Journal > Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income For transactions a-b, 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": View transaction list Journal entry worksheet An analysis of Withdrawals's insurance policies shows that $2,400 of coverage has expired. Note: Enter debits before credits. Account Title Debit Credit Date Dec 31 Record entry Clear entry View general journal General Jour Geral Leder Trial Balance Income Stalent St Retained Earrings Balance Sheet ) Impact on income Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances Unadjusted General Ledger Account Cach Teaching cupplies Debit Credit No. Dabit Credit No. Date Dec 31 Balance 70.525 Date Dec 31 Balance 8.900 Prepaid lincuranos Debit Credit Prepaid rent Debit No. No. Credit Date Dec 31 Balance 12000 Date Dec 31 Balance 3.800 Professional library Debit Credit No. No. Date Dec 31 Balance 49.000 Aboumulated depreslation - Profesional library Debit Credit Balance Dec 31 19.600 Equipment No. Dabit Credit Balance No. Date Dec 31 Acoumulated capreolation - Equipment Date Debit Credit Dec 31 Balance 10400 52.000 Accounts payable Debit Credit Unearned training fees Debit Credit No. Balance No. Balans Date Dec 31 Date Dec 31 33.200 15.000 Common stock Debit Retained earnings Debit Credit No. Credit No. Date Dec 31 Balance 9.000 Balance 87.000 Dec 31 Dividendo Tuition fee earned Debit Credit No. Debit Credit No. Date Dec 31 Balanon 51.500 Balance 134.000 Dec 31 Training fac samed Debit Credit aalarias HNDHREE Debit Credit No. No. Date Dec 31 Balance 45.000 Date Dec 31 Balance 50.800 Rent expence Debit Credit Advertising expence Debit Credit No. No. Balance Date Dec 31 Balance 41.800 Date Dec 31 175 Utilities exponce Debit Credit No. Date Dec 31 Balance 67001 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. Unadjusted K. Wright Trial Balance December 31, 2017 Account Title Credit IS Debit 70,525 8,900 12.000 3,800 49.000 19,600 52,000 Cash Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation - Equipment Accounts payable Unearned training fees Common stock Retained earnings Dividends Tuition fees earned Training fees earned Salaries expense Rent expense Advertising expense Utilities expense 10,400 33,200 15.000 9,000 87,000 51,500 134,000 45,000 50.800 41,800 6,175 6.700 353,200 $ Total S 353.200 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection. Unadjusted K. Wright Income Statement For Year Ended December 31, 2019 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income The unadjusted or adjusted balances will appear for each account, based on your selection. Unadjusted K. Wright Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, December 31, 2019 Add: Net income Less: Dividends Retained earnings, December 31, 2019 S 87.000 (51,500) 87.000 $ General General Income Requirement Impact on St Retained Journal Trial Balance Ledger Balance Sheet Statement Earnings income Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Include all balance sheet accounts, even those with zero balances. Unadjusted K. Wright Balance Sheet December 31, 2019 Assets Current assets Plant assets Liabilities Current liabilities Equity Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income 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 Unadjusted Account affecting the Income statement Balance Sheet Impact on net income Adjusting entry related to: a. Insurance b. Teaching supplies c. Depreciation - equipment d. Depreciation - library e. Training fees f. Tuition g. Salaries h. Rent Total impact on income due to adjustments Net income before adjustments Net income after adjustments