Net income before adjustments/Net income alter adjustments

Income Statement St Retained Earnings Balance Sheet Trial Balance Impact on incon Requirement General Ledger General Journal For each adjustment indicate the income statement and balance sheer account affected, and the impact on net income. If an net income to decrease enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint unadjusted on the drop-down.) Adjusted Impact on net Income $ (2.650) (5,300) (6,800) (13,000) Account affecting the: Adjusting entry related to: Income statement Balance Sheet a. Insurance Insurance expense Prepaid insurance b. Teaching supplies Teaching supplies expense Teaching supplies Depreciation expense G. Depreciation - equipment Equipment Accumulated depreciation - Equipment Depreciation expense. Accumulated depreciation - Professional d. Depreciation - library Professional library library e. Training fees Training fees earned Unearned training fees 1. Tuition Tuition fees earned Accounts receivable 9. Salaries Salaries expense Salaries payable h. Rent Rent expense Prepaid rent Total impact on income due to adjustments Net income before adjustments Net income after adjustments 6,800 9,000 (800 (3,600) (16,350) Balance Sheet Trial Balance December 31, 2019 Account Title Debit Cash $ 57,000 3,600 3,200 5,300 65,000 68,000 Accounts receivable Teaching supplies Prepaid insurance 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 Teaching supplies expense - Advertising expense Utilities expense Total 53,000 13,000 6.800 51,400 2,650 43,200 5,300 6,250 6.900 390,600 $ Lee Technical Institute Trial Balance December 31, 2019 Credit ount Title Debit 57,000 3,600 3,200 5,300 65,000 39,000 68,000 20,400 30,800 800 10,200 9.000 91,000 53,000 137,600 51,800 13,000 6.800 51,400 2.650 43,200 5,300 6,250 6.900 390,600 S 3 90,600 Prev 1 of 2 Next > Check my work Lee Technical Institute (LTI), a school owned by Hao Lee, 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, 2018, 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. a. An analysis of LTI's insurance policies shows that $2.650 of coverage has expired. b. An inventory count shows that teaching supplies costing $3.200 are available at year-end. c. Annual depreciation on the equipment is $6.800. d. Annual depreciation on the professional library is $13,000. e. 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 $3,400, 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, 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, $3,600 of the tuition has been earned by LTI. g. LTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $200 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 amings Balance SheetImpact on inco For transactions, review the adjusted balance and prepare the ad r ecessary to correctly report the rerrane curred. Each adjustment is posted automatically to the general ledger and trial balance as soon as you click record entry View transaction list View journal entry worksheet tion list View journal entry worksheet Date Account Title Credit Debit 2,650 Dec 31 Insurance expense Prepaid insurance 2,650 Dec 31 5,300 Teaching supplies expense Teaching supplies 5,300 Dec 31 6,800 Depreciation expense - Equipment Accumulated depreciation - Equipment 6.800 Dec 31 13,000 Depreciation expense - Professional library Accumulated depreciation - Professional library 13,000 Dec 31 6,800 Unearned training fees Training fees earned 6.800 Dec 31 3.600 Accounts receivable Tuition fees earned Dec 31 Salaries expense Salaries payable Dec 31 3,600 Rent expense Prepaid rent 3,600 Income Statement St Retained Earnings Balance Sheet Trial Balance Impact on incon Requirement General Ledger General Journal For each adjustment indicate the income statement and balance sheer account affected, and the impact on net income. If an net income to decrease enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint unadjusted on the drop-down.) Adjusted Impact on net Income $ (2.650) (5,300) (6,800) (13,000) Account affecting the: Adjusting entry related to: Income statement Balance Sheet a. Insurance Insurance expense Prepaid insurance b. Teaching supplies Teaching supplies expense Teaching supplies Depreciation expense G. Depreciation - equipment Equipment Accumulated depreciation - Equipment Depreciation expense. Accumulated depreciation - Professional d. Depreciation - library Professional library library e. Training fees Training fees earned Unearned training fees 1. Tuition Tuition fees earned Accounts receivable 9. Salaries Salaries expense Salaries payable h. Rent Rent expense Prepaid rent Total impact on income due to adjustments Net income before adjustments Net income after adjustments 6,800 9,000 (800 (3,600) (16,350) Balance Sheet Trial Balance December 31, 2019 Account Title Debit Cash $ 57,000 3,600 3,200 5,300 65,000 68,000 Accounts receivable Teaching supplies Prepaid insurance 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 Teaching supplies expense - Advertising expense Utilities expense Total 53,000 13,000 6.800 51,400 2,650 43,200 5,300 6,250 6.900 390,600 $ Lee Technical Institute Trial Balance December 31, 2019 Credit ount Title Debit 57,000 3,600 3,200 5,300 65,000 39,000 68,000 20,400 30,800 800 10,200 9.000 91,000 53,000 137,600 51,800 13,000 6.800 51,400 2.650 43,200 5,300 6,250 6.900 390,600 S 3 90,600 Prev 1 of 2 Next > Check my work Lee Technical Institute (LTI), a school owned by Hao Lee, 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, 2018, 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. a. An analysis of LTI's insurance policies shows that $2.650 of coverage has expired. b. An inventory count shows that teaching supplies costing $3.200 are available at year-end. c. Annual depreciation on the equipment is $6.800. d. Annual depreciation on the professional library is $13,000. e. 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 $3,400, 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, 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, $3,600 of the tuition has been earned by LTI. g. LTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $200 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 amings Balance SheetImpact on inco For transactions, review the adjusted balance and prepare the ad r ecessary to correctly report the rerrane curred. Each adjustment is posted automatically to the general ledger and trial balance as soon as you click record entry View transaction list View journal entry worksheet tion list View journal entry worksheet Date Account Title Credit Debit 2,650 Dec 31 Insurance expense Prepaid insurance 2,650 Dec 31 5,300 Teaching supplies expense Teaching supplies 5,300 Dec 31 6,800 Depreciation expense - Equipment Accumulated depreciation - Equipment 6.800 Dec 31 13,000 Depreciation expense - Professional library Accumulated depreciation - Professional library 13,000 Dec 31 6,800 Unearned training fees Training fees earned 6.800 Dec 31 3.600 Accounts receivable Tuition fees earned Dec 31 Salaries expense Salaries payable Dec 31 3,600 Rent expense Prepaid rent 3,600