Collins Technical Institute (CTI), a school owned by Carolyn Collins, provides training to individuals who pay tuition directly to the school. CTI 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. CTI 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 CTI's insurance policies shows that $2,700 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,760 are available at year-end. c. Annual depreciation on the equipment is $4,800. d. Annual depreciation on the professional library is $9,000. e. On November 1, CTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $3,200, 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, CTI 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 CTI g. CTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $180 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 earch 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.) Adjusted Adjusting entry related to: a. Insurance b. Teaching supplies c. Depreciation-equipment d. Depreciation-library e. Training fees f. Tuition g. Salaries h. Rent Account affecting the: Income statement Impact on net income Balance Sheet Insurance expense Teaching supplies expense Depreciation expense- Equipment Prepaid insurance $ 8,100 Teaching supplies Accumulated depreciation - Equipment Depreciation expense- Professional library Training fees earned Tuition fees earned Salaries expense Rent expense Total impact on income due to adjustments Accumulated depreciation - Professional library Uneamed training fees Cash Salaries payable Prepaid rent $ 8,100 Net income before adjustments Net income after adjustments < Balance Sheet Prev 1 of 1 Next a 99+ 0 Show less A Help hulu G a i Revenues Tuition fees earned Training fees earned Collins Technical Institute Income Statement For Year Ended December 31, 2019 Saved 141,000 44,000 0 $ 185,000 Total revenues Expenses Depreciation expense - Professional library 9,000 7 Depreciation expense - Equipment 4,800 Salaries expense 50,600 4 Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense 2,700 6464 43,200 4 5,440 6,050 7,000 0 0 earch Total expenses Net income PO 128,790 $ 56,210 1 of 1 a (99+ hp Adjusted Collins Technical Institute Balance Sheet December 31, 2019 Assets Current assets Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Total current assets Plant assets Professional library Accumulated depreciation - Professional library Professional library, net Equipment Accumulated depreciation Equipment Equipment, net Total plant assets 6 44 74,950 9,000 3,760 10,800 0 0 $ 98,510 45,000 (27,000) 18,000 48,000 (14,400) 33,600 51,600 6:08 ces Professional library 45,000 Accumulated depreciation - Professional library (27,000) Professional library, net 18,000 Equipment 48,000 Accumulated depreciation - Equipment (14,400) Equipment, net Total plant assets Total assets Current liabilities Accounts payable Liabilities Salaries payable Unearned training fees Total liabilities Equity Common stock Retained earnings Total equity Total Liabilities & Equity t 4 33,600 51,600 $ 150,110 S 33,200 0 16,000 0 $ 49,200 7,000 93,910 100,910 150,110