prepare journal entries and then do the adjustments

Problem 3-6A Adjusting entries (annual); adjusted trial balance L04, 6 eXcel CHECK FIGURE: 2. Adjusted Trial Balance, debits = $572,520 Packim 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 $1,250 of insurance coverage has expired. b. An inventory shows that teaching supplies costing $450 are on hand at the end of the year. Pac Rim Careers Trial Balances.xlsx Insert Page Layout Forms Dute Review View P18 D Adjustments Dr. Cr. Adjusted Trial Balance Dr. Cr. PacRim Careers Trial Balances December 31, 2020 Unadjusted Trial Balance Dr. Cr. $ 18,000 0 6,500 1,400 7,200 60.000 $ 18,000 46.000 6 Account 7 Cash 8 Accounts receivable 9 Teaching supplies 10 Prepaid insurance 11 Prepaid rent 12 Professional library 13 Accumulated depreciation professional library 14 Equipment 15 Accumulated depreciation equipment 16 Accounts payable 17 Salaries payable 18 Uneared extension revenue 19 Karoo Ashevak, capital 20 Karoo Ashevak, withdrawals 21 Tuition revenue 22 Extension revenue 23 Depreciation expense, equipment 24 Depreciation expense. professional library 25 Salaries expense 26 Insurance expense 27 Rent expense 28 Teaching supplies expense 29 Advertising expense 30 Utilities expense 31 Totals 32,000 2.500 -0- 6,300 224,000 42,000 196,000 72.500 0 O 206,000 0 44.000 0 14,000 11.200 $ 556,300 $ 556,300 210 CHAPTER 3 Adjusting Accounts for Financial Statements c. The estimated annual depreciation on the equipment is $8,000. d. The estimated annual depreciation on the professional library is $4,500. c. 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 $950, 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 $1,200 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 $120 per day for each employee. h. The balance in the Prepaid Rent account represents the rent for three months: December, January, and February Required 1. Prepare the necessary annual adjusting journal entries at December 31, 2020, based on (a) to (h) above. Analysis Component: 2. Refer to the format presented in Exhibit 3.22 and complete the adjusted trial balance using the informa- tion in (a) through (h) above. 3. If the adjustments were not recorded, calculate the over- or understatement of income. 4. Is it ethical to ignore adjusting entries