GLO302 - Based on Problem 3-3A LO P1, P2, P3, P4, P5, P6 H. Lee (Withdrawals), a school owned by Hao Lee, 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 $2,650 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,200 are available at year-end. c. Annual depreciation on the equipment is $6,800. d. Annual depreciation on the professional library is $13,000. 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 $3,400, and the client paid the first five months' fees in advance. When the cash was received, the Unearned 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, $3,600 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' salaries have accrued at the rate of $200 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December. No Date Account Title Debit Credit 1 Dec 31 2,650 Insurance expense Prepaid insurance 2,650 2 Dec 31 3,200 Teaching supplies expense Teaching supplies 3,200 3 Dec 31 6,800 Depreciation expense - Equipment Accumulated depreciation - Equipment 6,800 4 Dec 31 Depreciation expense - Professional library 13,000 Accumulated depreciation - Professional library 13,000 5 Dec 31 6,800 Unearned training fees Training fees earned 6,800 6 Dec 31 Accounts receivable 3,600 Tuition fees earned 3,600 7 Dec 31 800 Salaries expense Salaries payable 800 8 Dec 31 Rent expense Prepaid rent December 31, 2019 Account Title Debit Credit +Cash $ 57,000 3,600 5,300 5,300 3,600 65,000 39,000 68,000 20,400 30,800 800 * Accounts receivable Teaching supplies * Prepaid insurance * Prepaid rent * Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation - Equipment Accounts payable * Salaries payable Unearned training fees + Common stock + Retained earnings + Dividends Tuition fees earned Training fees earned Depreciation expense - Professional library *Depreciation expense - Equipment Salaries expense Insurance expense +Rent expense Teaching supplies expense 10,200 9,000 91,000 53,000 137,600 51,800 13,000 6,800 51,400 2,650 39,600 3,200 H. Lee Income Statement For Year Ended December 31, 2019 $ O O O 0 0 0 0 0 0 0 0 0 0 Net income H. Lee Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, December 31, 2019 91,000 Add: Net income Less: Dividends (53,000) 91,000 Retained earnings, December 31, 2019 $ H. Lee Balance Sheet December 31, 2019 Assets Current assets $ 0 0 0 0 oo $ 0 Plant assets $ 0 0 0 0 0 0 0 $ 0 Account affecting the: Income statement Balance Sheet Impact on net income Adjusting entry related to: a. Insurance b. Teaching supplies c. Depreciation - equipment d. Depreciation - library e. Training fees f. Tuition g. Salaries h. Rent $ 0 Total impact on income due to adjustments Net income before adjustments Net income after adjustments 0 GLO302 - Based on Problem 3-3A LO P1, P2, P3, P4, P5, P6 H. Lee (Withdrawals), a school owned by Hao Lee, 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 $2,650 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,200 are available at year-end. c. Annual depreciation on the equipment is $6,800. d. Annual depreciation on the professional library is $13,000. 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 $3,400, and the client paid the first five months' fees in advance. When the cash was received, the Unearned 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, $3,600 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' salaries have accrued at the rate of $200 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December. No Date Account Title Debit Credit 1 Dec 31 2,650 Insurance expense Prepaid insurance 2,650 2 Dec 31 3,200 Teaching supplies expense Teaching supplies 3,200 3 Dec 31 6,800 Depreciation expense - Equipment Accumulated depreciation - Equipment 6,800 4 Dec 31 Depreciation expense - Professional library 13,000 Accumulated depreciation - Professional library 13,000 5 Dec 31 6,800 Unearned training fees Training fees earned 6,800 6 Dec 31 Accounts receivable 3,600 Tuition fees earned 3,600 7 Dec 31 800 Salaries expense Salaries payable 800 8 Dec 31 Rent expense Prepaid rent December 31, 2019 Account Title Debit Credit +Cash $ 57,000 3,600 5,300 5,300 3,600 65,000 39,000 68,000 20,400 30,800 800 * Accounts receivable Teaching supplies * Prepaid insurance * Prepaid rent * Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation - Equipment Accounts payable * Salaries payable Unearned training fees + Common stock + Retained earnings + Dividends Tuition fees earned Training fees earned Depreciation expense - Professional library *Depreciation expense - Equipment Salaries expense Insurance expense +Rent expense Teaching supplies expense 10,200 9,000 91,000 53,000 137,600 51,800 13,000 6,800 51,400 2,650 39,600 3,200 H. Lee Income Statement For Year Ended December 31, 2019 $ O O O 0 0 0 0 0 0 0 0 0 0 Net income H. Lee Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, December 31, 2019 91,000 Add: Net income Less: Dividends (53,000) 91,000 Retained earnings, December 31, 2019 $ H. Lee Balance Sheet December 31, 2019 Assets Current assets $ 0 0 0 0 oo $ 0 Plant assets $ 0 0 0 0 0 0 0 $ 0 Account affecting the: Income statement Balance Sheet Impact on net income Adjusting entry related to: a. Insurance b. Teaching supplies c. Depreciation - equipment d. Depreciation - library e. Training fees f. Tuition g. Salaries h. Rent $ 0 Total impact on income due to adjustments Net income before adjustments Net income after adjustments 0