” src=”https://files.transtutors.com/cdn/qimg/631532a2832841af8e871ef8d2ca3c4c.jpg” aria-describedby=”ge3″> GLO302 – Based on Problem 3-3A LO P1, P2, P3, P4, P5, P6 Lee Technical Institute (LTI), a school owned by Edward Lee, provides training to individuals who pay tuition directly to the school. LTI 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. LTI 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 LTI&#39;s insurance policies shows that $2,500 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,880 are available at year-end. c. Annual depreciation on the equipment is $8,400. d. Annual depreciation on the professional library is $9,800. e. On November 1, LTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,800, and the client paid the first five months&#39; fees in advance. When the cash was received, the Unearned Training Fees account was credited. f. On October 15, LTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $3,400 of the tuition has been earned by LTI. g. LTI&#39;s two employees are paid weekly. As of the end of the year, two days&#39; salaries have accrued at the rate of $140 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income General Journal tab – For transactions a-h, 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 > Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income For transactions a-h, 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 2 3 4 5 6 7 8 An analysis of LTI&#39;s insurance policies shows that $2,500 of coverage has expired. Note: Enter debits before credits. Account Title Debit Credit Date Dec 31 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Unadjusted General Ledger Account Cash Debit Teaching supplies Debit Credit No. Credit No. / Date Dec 31 Balance 34,350 Date Dec 31 Balance 8,100 Prepaid insurance Debit Credit Prepaid rent Debit No. No. / Credit Date Dec 31 Balance 10,000 Date Dec 31 Balance 3,400 Professional library Debit Credit No. No. Date Dec 31 Balance 49,000 Accumulated depreciation – Professional library Date Debit Credit Balance Dec 31 19,600 Equipment Debit No. / Credit No. Date Dec 31 Balance 84.000 Accumulated depreciation – Equipment Date Debit Credit Dec 31 Balance 16,800 Accounts payable Debit Credit Unearned training fees Debit Credit No. No. Date Dec 31 Balance 28.400 Date Dec 31 Balance 14,000 Common stock Debit Credit Retained earnings Debit Credit No. No. Date Dec 31 Balance 7,000 Date Dec 31 Balance 87,000 Dividends Tuition fees earned Debit Credit No. Debit Credit No. Date Dec 31 Balance 50,600 Date Dec 31 Balance 126,000 Training fees earned Debit Credit Salaries expense Debit Credit No. No. Date Dec 31 Balance 41,000 Date Dec 31 Balance 50,400 Rent expense Debit Credit Advertising expense Debit Credit No. No. Date Dec 31 Balance 37,400 Date Dec 31 Balance 6,050 Utilities expense Debit Credit No. Date Dec 31 Balance 6,500 < General Journal Trial Balance > Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income 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 – Lee Technical Institute Trial Balance December 31, 2017 Credit Account Title Cash Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation – Professional library Equipment Accumulated depreciation – Equipment Accounts payable Unearned training fees Debit 34,350 8,100 10,000 3,400 49,000 19,600 84,000 16,800 28,400 14,000 7,000 87,000 50,600 126,000 41,000 Common stock Retained earnings Dividends Tuition fees earned Training fees earned Salaries expense Rent expense Advertising expense Utilities expense Total 50,400 37,400 6,050 6,500 339,800 $ $ 339,800 < General Ledger Income Statement > Unadjusted Lee Technical Institute Income Statement For Year Ended December 31, 2019 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income The unadjusted or adjusted balances will appear for each account, based on your selection. Unadjusted Lee Technical Institute hnical Institute Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, December 31, 2019 Add: Net income Less: Dividends Retained earnings, December 31, 2019 $ 87,000 (50,600) 87,000 $ < Income Statement Balance Sheet > Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income 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. Include all balance sheet accounts, even those with zero balances. Unadjusted Lee Technical Institute Balance Sheet December 31, 2019 Assets Current assets Plant assets Plant assets Liabilities Current liabilities Equity < St Retained Earnings Impact on income > Unadjusted 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 Total impact on income due to adjustments Net income before adjustments Net income after adjustments < Balance Sheet Impact on income>

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