Strods Technical Institute (STI), a school owned by Anita Strods, provides training to individuals who pay tuition directly to the school STI 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. STI 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 a. An analysis of Str's insurance policies shows that $2.900 of coverage has expired. b. An inventory count shows that teaching supplies costing $3.920 are available at year end. c. Annual depreciation on the equipment is $4.000 d. Annual depreciation on the professional library is $7,400 e. On November 1, STI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $3,000, and the client paid the first five months fees in advance. When the cash was received, the Unearned Training Fees account was credited t. On October 15, STI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the Class At December 31, $3,000 of the tuition has been earned by STI 9. STI's two employees are paid weekly. As of the end of the year two days salaries have accrued at the rate of $160 per day for each n. The balance in the Prepaid Rent account represents rent for December. Requirement General General Income Trial Balance St Retained Journal Impact on Ledger Statement Balance Sheet Earnings income General Journal tab. For transactions ab, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the financial statements for accuracy General 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 financial statement tabs Income Statement tab Use the drop down to select the craints ronarhrin Requirement General General Income Trial Balance St Retained Journal Ledger Impact on Statement Balance Sheet Earnings income General Journal tab - For transactions a- , review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. After adjusting the accounts, review the financial statements for accuracy. General 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 financial 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 Retained earnings tab - The unadjusted or adjusted balances will appear for each account, based on your selection. Balance Sheet tab - Use the drop-downs 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.) Requirement General Journal > .. X 1 An analysis of STI's insurance policies shows that $2,900 of coverage has expired. 2 An inventory count shows that teaching supplies costing $3,920 are available at year-end. 3 Annual depreciation on the equipment is $4,000. 4 Annual depreciation on the professional library is $7,400. 5 On November 1, STI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $3,000, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was rodited Note : = journal entry has been entered X: Calls for a moniniy lee oi $3,000, and the client palu une first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. has 6 On October 15, STI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $3,000 of the tuition has been earned by STI. Cre 7 STI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $160 per day for each employee. 8 The balance in the Prepaid Rent account represents rent for December Note : journal entry has been entered 1 2 3 4 5 6 7 8 > An analysis of STI's insurance policies shows that $2,900 of coverage has expired. Note: Enter debits before credits. Account Title Date Dec 31 Debit Credit Record entry Clear entry View general Journal General Ledger Account Cash No. Date Dec 31 Debit Credit Teaching supplies Debit Credit No. Balance 67.450 Date Dec 31 Balance 9,400 Prepaid insurance No. Debit Date Dec 31 Credit Prepaid rent Debit Balance 8.700 No. Credit Date Dec 31 Balance 4.400 Professional library Debit Credit No. Date Dec 31 No. Balance 37,000 Accumulated depreciation - Professional library Date Debit Credit Balance Dec 31 14,800 Equipment No Debit Credit Date Dec 31 No. Balance 40,000 Accumulated depreciation - Equipment Date Debit Credit Dec 31 Balance 8.000 Accounts payable Debit Credit No. Date Dec 31 Unearned training fees Debit Credit Balance 30.800 No. Date Dec 31 Balance 15,000 Common stock Debit Credit No. Date Da Balance Retained earnings Debit Credit No. Date Common stock Retained earnings No. Debit Date Dec 31 Credit No. Balance 8,000 Debit Credit Date Dec 31 Balance 88,000 Dividends No. Debit Date Dec 31 Credit Tuition fees earned Debit Credit No. Balance 54,500 Date Dec 31 Balance 128,000 Training fees earned Debit Credit No. Date Dec 31 Balance 42,000 Salaries expense Debit Credit No. Date Dec 31 Balance 51,400 Rent expense No. Date Debit Credit Advertising expense Debit Credit No. Balance 48.400 Dec 31 Date Dec 31 Credit Balance 6.150 Utilities expense Debit Credit No. Date Dec 31 Balance 7.200 You may view either the unadjusted or adjusted trial balance by choosing from the drop-down box below. Your choice will determine the reported values on the financial statement tabs. Unadjusted Strods Technical Institute Trial Balance December 31, 2017 Account Title Debit Credit S 67.450 9,400 8.700 4,400 37.000 14,800 40,000 8,000 Cash Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation - Equipment Accounts payable Uneamed training fees Common stock Retained eamings Dividends Tuition fees earned Training fees earned Salaries expense Rent AS 30,800 15,000 8.000 88,000 54,500 128.000 42,000 51,400 48 4nn 8,700 4,400 37,000 2 2 2 14,800 40,000 Prepaid insurance Prepaid rent Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation - Equipment Accounts payable Unearned training fees Common stock Retained earnings Dividends Tuition fees earned Training fees earned Salaries expense Rent expense Advertising expense Utilities expense Total 8,000 30,800 15,000 8,000 88,000 54,500 128,000 42,000 51,400 48,400 6,150 7,200 334,600 S 334,600 income 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. Unadjusted Strods Technical Institute Income Statement For Year Ended December 31, 2019 income The unadjusted or adjusted balances will appear for each account, based on your selection, Unadjusted Strods Technical Institute Statement of Retained Earnings For Year Ended December 31, 2019 Retained earings, December 31, 2019 Add: Net income Less: Dividends Retained earnings, December 31, 2019 88,000 (54.500) 88,000 $ Strods Technical Institute Balance Sheet December 31, 2019 Assets Current assets Plant assets Liabilities Current liabilities Liabilities Current liabilities Equity