CHAPTER 3 Adjusting Accounts for Financial Statements Analysis Component: Using your understanding of GAAP, explain how and why unearned rever CHAPTER 3 Adjusting Accounts for Financial Statements adjusted at the end of the accounting period. Problem 3-4B Preparing adjusting (annual) and subsequent cash entries-accrued c. The estimated monthly depreciation on the equipment is $650. d. The estimated monthly depreciation on the professional library is $320. expenses LO4 In reviewing the accounts on September 30, 2020, for the year just ended, Geek Designers discovery . The school offers off-campus services for specific operators. On December 1, the company agreed to do a special four-month course for a client. The contract calls for a $5,400 monthly fee, and the client a. The September cell phone bill for $465 was unpaid and unrecorded at September 30. It will be first two months' revenue in advance . When the cash was received , the Unearned Extension Revenue following : account was credited. October 5. . Accrued wages at September 30 totalled $82,500. On October 9, the first biweekly payday of god f. On December 15, the school agreed to teach a four-month class to an individual for $1,600 tuition per $115,000 was paid to employees representing the seven days accrued on September 30 plus the fingers month payable at the end of the class. The services have been provided as agreed, and no payment has been received. g. The school's only employee is paid weekly. As of the end of the month, wages of $1,200 have accrued. working days in October. . On September 30, $1,650 of cable charges were accrued regarding the past two months of usage they h. The balance in the Prepaid Rent account represents the rent for December, January, February, and March. not recorded or paid. This amount was paid on October 2. d. Interest of $1,220 had accrued on the bank loan as at September 30. It is to be paid on October 2. Fawcett Institute Trial Balance.xisx e. $1,675 of property taxes covering September were accrued on September 30. This amount was pid P18 Insert Page Layout Formulas Data Review View B C October 15 . Fawcett Institute Required Using the information provided above, prepare the annual adjusting journal entries at Seples Trial Balance 30 along with the appropriate subsequent cash entries. Unadjusted Account Trial Balance Cr. Adjustments Adjusted Problem 3-5B Preparing adjusting (monthly) and subsequent cash entries-accrued revenues Lo Dr. 25,000 Dr. Cr. Trial Balance Cash Dr. CT . WonderWeb prepares adjusting entries monthly. In reviewing the accounts on March 31, 2020, Wonder Accounts receivable 9 Teaching supplies 10 Prepaid insurance 107,200 discovered the following: 11 Prepaid rent 36,000 a. Interest of $450, representing 25 days in March, had accrued on the note receivable as of March 31 11.600 accrual of $450 plus an additional five days in April was collected on April 5. essional library 20.000 13 Accumulated depreciation . Accrued consulting revenue totalling $5,600 was not recorded on March 31. This amount was collects professional library 14 Equipment 15 Accumulated depreciation , equipment 141,400 $ 3,000 April 6. c. Web design work totalling $8,750 was completed on March 31 but not recorded. This amount was cole 16 Accounts payable 32.000 on April 13. 17 Salaries payable 24,400 d. WonderWeb rents the basement of its building to a student. The student has not paid the March 18 Unearned extension revenue 19 Jay Fawcett, capital $5,200 $950 as at March 31. On April 27, the March rent plus the rent for April was collected. 20 Jay Fawcett , withdrawals 62,000 40,090 Required Using the information provided above, prepare the March 31 month-end adjusting journaled 21 Tuition revenue 22 Extension revenue 285,000 along with the appropriate subsequent cash entries. 23 Depreciation expense, equipment 24,000 24 Depreciation expense , Problem 3-6B Adjusting entries ( monthly); adjusted trial balance LO4, 6 excel professional library 25 Salaries expense CHECK FIGURE: 2. Adjusted Trial Balance, debits = $588,570 26 Insurance expense 142,606 Fawcett Institute provides one-on-one training to individuals who pay tuition directly to the business ant 27 Rent expense offers extension training to groups in off-site locations. Fawcett prepares adjusting entries monthly. Ad 28 Teaching supplies expense 29 Advertising expense 30 Utilities expense 36,00 information available on December 31, 2020: 31 Totals 24.80 a . An analysis of the company's policies shows that $31,000 of insurance coverage has expired. $ 585,600 $ 585,600 b . An inventory shows that teaching supplies costing $13,400 are on hand at the end of the month. 220 221