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Please help me fill in what is left on the account affecting the: (impact on net income) Mitchell Technical Institute (MTI), a school owned by

Please help me fill in what is left on the account affecting the: (impact on net income)

Mitchell Technical Institute (MTI), a school owned by Rick Mitchell, provides training to individuals who pay tuition directly to the school. MTI 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. MTI 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.

  1. An analysis of MTIs insurance policies shows that $2,500 of coverage has expired.
  2. An inventory count shows that teaching supplies costing $3,600 are available at year-end.
  3. Annual depreciation on the equipment is $5,600.
  4. Annual depreciation on the professional library is $10,600.
  5. On November 1, MTI 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.
  6. On October 15, MTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $4,200 of the tuition has been earned by MTI.
  7. MTIs 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.
  8. The balance in the Prepaid Rent account represents rent for December.

Mitchell Technical Institute
Trial Balance
December 31, 2017
Account Title Debit Credit
Cash 53,075
Teaching supplies 9,000
Prepaid insurance 10,000
Prepaid rent 4,200
Professional library 53,000
Accumulated depreciation - Professional library 21,200
Equipment 56,000
Accumulated depreciation - Equipment 11,200
Accounts payable 28,400
Unearned training fees 17,000
Common stock 11,000
Retained earnings 89,000
Dividends 52,100
Tuition fees earned 128,000
Training fees earned 42,000
Salaries expense 51,200
Rent expense 46,200
Advertising expense 6,225
Utilities expense 6,800
Total 347,800 347,800
Mitchell Technical Institute
Balance Sheet
December 31, 2019
Assets
Current assets
Cash $53,075
Accounts receivable 4,200
Teaching supplies 3,600
Prepaid insurance 7,500
Prepaid rent 0
0
Total current assets $68,375
Plant assets
Professional library $53,000
Accumulated depreciation - Professional library (31,800)
Professional library, net 21,200
Equipment 56,000
Accumulated depreciation - Equipment (16,800)
Equipment, net 39,200
Total plant assets 60,400
Total assets $128,775
Liabilities
Current liabilities
Accounts payable $28,400
Salaries payable 800
Unearned training fees 10,200
0
Total liabilities $39,400
Equity
Common stock 11,000
Retained earnings 78,375
Total equity 89,375
Total Liabilities & Equity $128,775

Mitchell Technical Institute
Income Statement
For Year Ended December 31, 2019
Revenues
Training fees earned $48,800
Tuition fees earned 132,200
0
Total revenues $181,000
Expenses
Depreciation expense - Professional library 10,600
Depreciation expense - Equipment 5,600
Salaries expense 52,000
Insurance expense 2,500
Rent expense 50,400
Advertising expense 6,225
Utilities expense 6,800
Teaching supplies expense 5,400
0
0
Total expenses 139,525
Net income $41,475
Account affecting the: Impact on net income
Adjusting entry related to: Income statement Balance Sheet
a. Insurance Insurance expense Prepaid insurance
b. Teaching supplies Teaching supplies expense Teaching supplies
c. Depreciation - equipment Accumulated depreciation - Equipment
d. Depreciation - library Accumulated depreciation - Professional library
e. Training fees Training fees earned Unearned training fees
f. Tuition Tuition fees earned
g. Salaries Salaries expense Salaries payable
h. Rent Rent expense Prepaid rent
Total impact on income due to adjustments $0
Net income before adjustments
Net income after adjustments
0

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