T. Nguyen (Withdrawals), a school owned by Than Nguyen, provides training to individuals who pay tuition directly to the school. Withdrawals 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. Withdrawals 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 Withdrawals'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 $7800, e. On November 1. Withdrawals agreed to do a special six month course (starting immediately) for a client. The contract calls for a monthly fee of $3.200, and the client paid the first five months' fees in advance. When the cash was received the Uneamed Training Fees account was credited. f. On October 15, withdrawals agreed to teach a four month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $3,200 of the tuition has been earned by Withdrawals. g. Withdrawals's two employees are paid weekly. As of the end of the year, two days' sataries have accrued at the rate of $180 per day for each employee h. The balance in the Prepaid Rent account represents rent for December Requirement General Journal General Ledger That Balance Income Statement St Retained Earnings Balance Sheet Impact on income For transactions ah review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger and trial balance as soon as you click "record entry" View transaction list Journal entry worksheet Saved .3 HW A 1 Use the drop-downs to select the accounts properly included on the income statement. Th balances will appear for each account, based on your selection. Adjusted 50 noints T. Nguyen Income Statement For Year Ended December 31, 2019 eBook Print $ OO References 0 0 0 0 0 0 0 0 0 0 0 Net income (Trial Balance St Retained Earnings > 1 T. Nguyen Balance Sheet December 31, 2019 Assets 80 points Current assets $ 0 0 eBOOK 0 Print 0 0 References 0 $ 0 Plant assets $ 0 0 0 0 0 0 0 0 $ Liabilities Current liabilities $ 0 0 MC Ch. 3 HWA Saved Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income 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 drop-down.) 30 points Show less BOOK Adjusted Print Account affecting the Income statement Balance Sheet Impact on net income Reference Adjusting entry related to: a Insurance b. Teaching supplies c. Depreciation equipment d. Dopreciation - library e Training fees | Tuition 9 Salaries h Ront Total impact on income due to adjustments Not income before adjustments Net income after adjustments 0 0 1 T. Nguyen Balance Sheet December 31, 2019 Assets 80 points Current assets $ 0 0 eBOOK 0 Print 0 0 References 0 $ 0 Plant assets $ 0 0 0 0 0 0 0 0 $ Liabilities Current liabilities $ 0 0 MC Ch. 3 HWA Saved Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income 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 drop-down.) 30 points Show less BOOK Adjusted Print Account affecting the Income statement Balance Sheet Impact on net income Reference Adjusting entry related to: a Insurance b. Teaching supplies c. Depreciation equipment d. Dopreciation - library e Training fees | Tuition 9 Salaries h Ront Total impact on income due to adjustments Not income before adjustments Net income after adjustments 0 0
