PacRim Careers provides training to individuals who pay tuition directly to the business. The business also offers extension training to groups in off-site locations. Additional information available at the December 31, 2020, year-end follows: a. An analysis of the company's policies shows that $1,290 of insurance coverage has expired. b. An inventory shows that teaching supplies costing $490 are on hand at the end of the year. c. The estimated annual depreciation on the equipment is $8,500 d. The estimated annual depreciation on the professional library is $4,680. e. The school offers off-campus services for specific employers. On November 1, the company agreed to do a special six-month course for a client. The contract calls for a monthly fee of $910, and the client paid the first five months' revenue in advance. When the cash was received, the Unearned Extension Revenue account was credited. f. On October 15, the school agreed to teach a four-month class for an individual for $1,240 tuition per month payable at the end of the class. The services to date have been provided as agreed, but no payment has been received. g. The school's two employees are paid weekly. As of the end of the year, three days' wages have accrued at the rate of $110 per day for each employee. h. The balance in the Prepaid Rent account represents the rent for three months: December, January, and February, Cash Accounts receivable Teaching supplies Prepaid insurance) Prepaid rent Account Professional library Accumulated depreciation, professional library Equipment Accumulated depreciation, equipment Accounts payable Salaries payable Unearned extension revenue Karoo Ashevak, capital Karoo Ashevak, withdrawals Tuition revenue Extension revenue Depreciation expense, equipment Depreciation expense, professional library Salaries axnense PACRIM CAREERS Trial Balances December 31, 2020 Unadjusted Trial Balance Dr. $ 18,400 e 6,900 1,440 7,800 62,400 102,000 94,000 88 210 000 Cr. $ 18,720 34,000 2,700 e 6,700 233,000 205,320 76,500 Adjustments Dr. Cr. Adjusted Trial Balance Dr. Cr. ad K ces Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation, professional library Equipment Accumulated depreciation, equipment Accounts payable Salaries payable Unearned extension revenue Karoo Ashevak, capital Karoo Ashevak, withdrawals Tuition revenue Extension revenue Depreciation expense, equipment Depreciation expense, professional library. Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 6,900 1,440 7,800 62,400 102,000 94,000 $ 18,720 34,000 2,788 8 6,700 233,000 205,320 76,500 210,000 e 48,000 0 14,400 11,600 $576,940 $576,940 Check my work Required: 1. Prepare the necessary annual adjusting journal entries at December 31, 2020, based on (a) to (h) above. View transaction list Journal entry worksheet
