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Lewis Technical Institute (LTI), a school owned by Sharon Lewis, provides training to individuals who pay tuition directly to the school. LTI also offers training
Lewis Technical Institute (LTI), a school owned by Sharon Lewis, 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, 2022, is found on the trial balance tab. 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 follow.
- An analysis of LTIs insurance policies shows that $2,550 of coverage has expired.
- An inventory count shows that teaching supplies costing $3,640 are available at year-end.
- Annual depreciation on the equipment is $4,200.
- Annual depreciation on the professional library is $7,800.
- 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 $2,600, and the client paid the first five months fees in advance. When the cash was received, the Unearned Training Fees account was credited.
- On October 15, LTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $3,000 of the tuition has been earned by LTI.
- LTIs two employees are paid weekly. As of the end of the year, two days salaries have accrued at the rate of $220 per day for each employee.
- The balance in the Prepaid Rent account represents rent for December.
Please check my work and fill in this table
Adjusted Account affecting the: Impact on net income Income statement Balance Sheet Adjusting entry related to: a. Insurance Insurance expense Prepaid insurance Teaching supplies b. Teaching supplies c. Depreciation - equipment Accumulated depreciation - Equipment d. Depreciation - library Teaching supplies expense Depreciation expense - Equipment Depreciation expense - Professional library Training fees earned Tuition fees earned e. Training fees f. Tuition Accumulated depreciation - Professional library Unearned training fees Accounts receivable Salaries payable Prepaid rent g. Salaries Salaries expense h. Rent Rent expense 0 Total impact on income due to adjustments Net income before adjustments Net income after adjustments 0 Adjusted Account affecting the: Impact on net income Income statement Balance Sheet Adjusting entry related to: a. Insurance Insurance expense Prepaid insurance Teaching supplies b. Teaching supplies c. Depreciation - equipment Accumulated depreciation - Equipment d. Depreciation - library Teaching supplies expense Depreciation expense - Equipment Depreciation expense - Professional library Training fees earned Tuition fees earned e. Training fees f. Tuition Accumulated depreciation - Professional library Unearned training fees Accounts receivable Salaries payable Prepaid rent g. Salaries Salaries expense h. Rent Rent expense 0 Total impact on income due to adjustments Net income before adjustments Net income after adjustments 0Step by Step Solution
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