Please prepare the following
Nguyen Technical Institute (NTI), a school owned by Than Nguyen, provides training to individuals who pay tuition directly to the school. NTI also offers training to groups in offsite locations. tts unadjusted trial balance as of December 31, is found on the trial balance tab. NTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31. a. An analysis of NTl's insurance policies shows that $2,950 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,960 are available at year-end. c. Annual depreciation on the equipment is $4,200. d. Annual depreciation on the professional library is $1800. e. On September 1, NTI agreed to do ve courses for a client for $3,200 each. Two courses will start immediately and nish before the : end ofthe year. Three courses will not begin until next year. The client paid $16,000 cash in advance for all five courses on , September], and NTI credited Unearned Training Fees. f. On October 15, NTI agreed to teach a fourmonth class {beginning immediately) for an executive with payment due at the end ofthe : class. At December 31, $8,000 of the tuition has been earned by NTI. g. NTl's two employees are paid weekly. As ofthe end ofthe 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. Impact on income General General Income St Owner Journal Ledger Trial Balance Statement Equity Balance Sheet Requirement GeneralI Journal tab - For transactions a-h, review the unadjusted balance and prepare the adjusting entry necessary to oorrectjy report the revenue earned or the expense incurred. After adjusting the accounts, review the nancial statements for accuracy. GeneralI Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Trial Balance tab You may view either the unadjusted or adjusted trial balance by choosing from the dropdown box below. Your choice will determine the reported values on the nancial statement tabs. Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection. Statement of Owner's Equity tab - The unadjusted or adjusted balances will appear for each account, based on your selection. Balance Sheet tab Use the dropdowns to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Impact on Income tab - For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net 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 dropdown.)
