For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net
Fantastic news! We've Found the answer you've been seeking!
Question:
For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income.
Transcribed Image Text:
R. King (Withdrawals), a school owned by Robert King, 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 $2,800 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,840 are available at year-end. c. Annual depreciation on the equipment is $3,600. d. Annual depreciation on the professional library is $6,600. 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 $2,600, 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, $4,000 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 $220 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December. R. King (Withdrawals), a school owned by Robert King, 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 $2,800 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,840 are available at year-end. c. Annual depreciation on the equipment is $3,600. d. Annual depreciation on the professional library is $6,600. 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 $2,600, 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, $4,000 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 $220 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December.
Expert Answer:
Answer rating: 100% (QA)
Answer Adjusting Journal Entries SNo Date Account Title Debit Credit 1 Dec 31 Insurance Expense 2800 Prepaid Insurance 2800 2 Dec 31 Teaching Supplies ... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
Income statement and balance sheet information abstracted from a recent annual report of Wolverine World Wide, Inc. appears below: The significant accounting policies note disclosure contained the...
-
The income statement and balance sheet for Rollins Company are provided below. Using the DuPont framework, compute the profit margin, asset turnover, assets-to-equity ratio, and resulting return on...
-
The following income statement and balance sheet information are available for two firms, Firm A and Firm B. (a) Calculate the amount of dividends Firm A and Firm B paid using the information given....
-
Turtle Creek Partnership had the following revenues, expenses, gains, losses, and distributions Sales revenue Long-term capital gains Cost of goods sold Depreciation-MACRS $ 59,000 $ 3,300) $...
-
Find the remaining quantity of 146Curanium 238 atoms from an original sample of 5.50 x 1020 atoms after 2.45 billion years. Its half-life is 4.50 billion years.
-
At the instant shown, the length of the boom AB is being decreased at the constant rate of 0.2 m/s, and the boom is being lowered at the constant rate of 0.08 rad/s. If the mass of the men and lift...
-
After performing a bank reconciliation, journal entries are required for a. all items on the bank side of the reconciliation. b. all items on the book side of the reconciliation. C. all items on the...
-
Emily Lee grew up in Vancouver and loves to be a tourist in her own city. In order to make money to pay for university, she opened a walking tour company, Very Vancouver. The following are...
-
The company will install the printing machine in an existing building, which is currently being rented out for $ 3 0 , 0 0 0 a year under a 1 0 year lease agreement signed 6 years ago. The next lease...
-
Based on the information in The Art of Positive Communication EL. a TedTalk by Julien Mirivel, Answer the following questions: 1) Name and give a brief example for each of the 6 positive...
-
Download the Applying Excel form and enter formulas in all cells that contain question marks. The Chapter 2 Form worksheet is to be used to create your own worksheet version of the example in the...
-
Body Images Pty Ltd (BI) is a beauty therapy company in Perth, Western Australia. They sell various beauty services to clients who want to improve their personal image. BI operates out of a square...
-
Let A = 3 Find B = sin(A) Find C = A Find D=C2 Find ECC Find F = C.*C % Your script goes here.
-
A company applies overhead at a rate of 160% of direct labor cost. Actual overhead cost for the current period is $1,006,000, and direct labor cost is $590,000. Determine whether there is over- or...
-
Fanning Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the...
-
Respond in a summative manner to the 2 separate posts. Post 1 In your reading it sets forth the pronouncement that the Constitution is the supreme law of the land. How does Planned Parenthood of S.E....
-
An astronaut who was 2 0 years old left to explore the galaxy in 1 9 8 0 , on a spaceship travelling at 2 . 5 x 1 0 ^ 8 m / s . After 4 0 years of travel, how old does he appear to be ? Please answer...
-
What are some of the features of the Unified Process (UP)?
-
Mayfield Corporation finished job no. 314 on June 1. On June 10, the company sold job no. 314 for $10,000, cash. Total manufacturing costs allocated to this job at the time of the sale amounted to...
-
The Home Depot, Inc., financial statements appear in Appendix A at the end of this text book. Use the statements to complete the following requirements: a. Calculate the gross profit percentage of...
-
The following items were taken from the accounting records of Minnesota Satellite Telephone Corporation (MinnSat) for the year ended December 31, 2011 (dollar amounts are in thousands): Accounts...
-
Financial statement data of HiFlite Electronics Limited include the following items (dollars in thousands): {Requirements} 1. Compute HiFlite's current ratio, debt ratio, and earnings per share. Use...
-
Comparative financial statement data of Panfield Optical Mart follow: Other information: 1. Market price of Panfield common stock: \(\$ 94.38\) at December 31, 2020; and \(\$ 85.67\) at December 31,...
-
Assume that you are purchasing an investment and have decided to invest in a company in the publishing business. You have narrowed the choice to Thrifty Nickel Corp. and The Village Cryer Limited and...
Study smarter with the SolutionInn App