Required

1. Prepare T-accounts (representing the ledger) with balances from the unadjusted trial balance.

2. Prepare the necessary adjusting journal entries for items a through h and post them to the T-accounts. Assume that adjusting entries are made only at year-end.

3. Update balances in the T-accounts for the adjusting entries and prepare an adjusted trial balance.

4. Prepare the companys income statement and statement of owners equity for the year, and prepare its balance sheet as of December 31. The C. Alonzo, Capital account balance was $71,500 on December 31 of the prior year, and there were no owner investments in the current year.

Additional Information

1. An analysis of the Institutes insurance policies shows that $9,500 of coverage has expired.

2. An inventory count shows that teaching supplies costing $20,000 are available at year-end.

3. Annual depreciation on the equipment is $5,000.

4. Annual depreciation on the professional library is $2,400.

5. On November 1, the Institute agreed to do a special two-month training course (starting immediately) for a client. The contract calls for a $14,300 monthly fee, and the client paid the two months training fees in advance. When the cash was received, the Unearned Revenue account was credited.

6. On October 15, the Institute agreed to teach a four-month class (beginning immediately) to an executive with payment due at the end of the class. At December 31, $5,750 of the tuition revenue has been earned by the Institute.

7. The Institutes only employee is paid weekly. As of the end of the year, three days salaries have accrued at the rate of $150 per day.

8. The balance in the Prepaid Rent account represents rent for December.

Following is the unadjusted trial balance for Alonzo Institute as of December 31. The Institute provides one-on-one training to individ who pay tuition directly to the business and offers extension training to groups in off-site locations. Shown after the trial balance are i a through h that require adjusting entries as of December 31. ALONZO INSTITUTE Unadjusted Trial Balance December 31 Credit Debit $ 60,000 0 70,000 19,000 3,800 12,000 $ 2,500 40,000 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation--Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Uneared revenue C. Alonzo, Capital C. Alonzo, Withdrawals Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 20,000 11,200 0 28,600 71,500 20,000 129,200 68,000 0 44,200 29,600 19,000 13.400 $331,000 $331,000 C