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On months' rent in advance on that dale. equired • Prepare journal entries to record the first subsequent cash transaction in Novenber 20 and e. · Use the information to prepare atljusting entries as of October 31, 2015.

On months' rent in advance on that dale. equired • Prepare journal entries to record the first subsequent cash transaction in Novenber 20 and e. · Use the information to prepare atljusting entries as of October 31, 2015.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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%24 company has out an with the tenant, who ha November rent in full on 15. The has not to fall again. f. On 1, the space to per The fre 2. Prepare journal entries to the first cash in 2015 for parts ceived was to Rent accoun months' rent in advance on that The was with a to the accom e. Since the com month, starting on September 1. 22 November rent in full on November 15. The tenant has agreed not to fall behind again Required nce . Use the information to prepare adjusting entries as of October 31, 2015. Re Dr. and e. 1. 2. Following is the unadjusted trial balance for Alonzo Institute ás of December 31, 2015, which initialy records prepaid expenses and unearned revenues in balance sheet accounts. The Institute provides ona on-one training to individuals who pay tuition directly to thé business and offers cxtcnsion training to groups in off-site locations. Shown after the trial balance are items a through h that require adjusting entries as of December 31, 2015. 4. A si trial trial ALONZO INSTITUTE Unadjusted Trial Balance December 31, 2015 Credit Debit Cash 00 00, Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library 10 Equipment Accumulated depreciation-Equipment Accounts payable He Salaries payable 14 Unearned training fees 18 C. Alonzo, Capital As. C. Alonzo, Withdrawals 17 Tuition fees earned 19 Training fees earned ia Deprèciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense 000'0 19,000 3,800 $ 2,500 000'0 11.200 71,500 20,000 129,200 68,000 De Sala 44,200 Inte 0. 29,600 Rent expense Insu Teaching supplies expense Advertising expense Utilities expense Rem Off 13,400 27 Totals Tota 2 331.000 $331,000 28.
Transcribed Image Text:%24 company has out an with the tenant, who ha November rent in full on 15. The has not to fall again. f. On 1, the space to per The fre 2. Prepare journal entries to the first cash in 2015 for parts ceived was to Rent accoun months' rent in advance on that The was with a to the accom e. Since the com month, starting on September 1. 22 November rent in full on November 15. The tenant has agreed not to fall behind again Required nce . Use the information to prepare adjusting entries as of October 31, 2015. Re Dr. and e. 1. 2. Following is the unadjusted trial balance for Alonzo Institute ás of December 31, 2015, which initialy records prepaid expenses and unearned revenues in balance sheet accounts. The Institute provides ona on-one training to individuals who pay tuition directly to thé business and offers cxtcnsion training to groups in off-site locations. Shown after the trial balance are items a through h that require adjusting entries as of December 31, 2015. 4. A si trial trial ALONZO INSTITUTE Unadjusted Trial Balance December 31, 2015 Credit Debit Cash 00 00, Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library 10 Equipment Accumulated depreciation-Equipment Accounts payable He Salaries payable 14 Unearned training fees 18 C. Alonzo, Capital As. C. Alonzo, Withdrawals 17 Tuition fees earned 19 Training fees earned ia Deprèciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense 000'0 19,000 3,800 $ 2,500 000'0 11.200 71,500 20,000 129,200 68,000 De Sala 44,200 Inte 0. 29,600 Rent expense Insu Teaching supplies expense Advertising expense Utilities expense Rem Off 13,400 27 Totals Tota 2 331.000 $331,000 28.
A table for Yan The first two columns contain the 3-4B Chapter 3 Adjusting Accounts and Preparing Financial Statements Additional. Information Items An analysis of the Institute's insurance policies shows that $9,500 of coverage has expired. An inventory count shows that teaching supplies čosting $20,000 are available at ycar-end 2015 c. Annual depreciation on the equipment is $5,000. d. Annual depreciation on the professional library is $2,400. On November 1, the Institute agreed to do a special five-month course (starting immediately) for a client The contract calls for a $14,300 monthly fee, and the client paid the first two months' fees in ndvance. When the cash was received, the Unearned Training Fees account was credited. The last two months' fees will be recorded when collected in 2016. + On October 15, the Institute agreed to teach a four-month class (beginning immediately) to an indi- vidual for $2,300 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (The Institute's accruals are applicd to the necarest half-month; for example, October recognizes one-half month accrual.) g. The Institute's only employee is paid weekly. As of the end of the year, three days' salaries have ac- crued at the rate of $150 per day. h. The balance in the Prepaid Rent account represents rent for December. Required 1. Prepare T-accounts (representing the ledger) with balances from the unadjusted trial balance. 2. Prepare the nccessary adjusting journal entries for items a through h, and post them to the T-accounts. Assume that adjusting entries are made only at year-end. 3. Update balances in the T-accounts for the adjusting entries and prepare an adjusted trial balance. Check (2e) Cr. Training Fees Earned, $28,600: (2/) Cr. Tuition Fees Earne $5,750, (3) Adj. trial balar tolals, $344,600; (4) Net * Frepare the company's income statement and statement of owner's equity for the year 2015, and pre- incorne, $54,200: Encling pare its balance.sheet as of December 31, 2015. Alonzo, Capital, $ 105,700 trial balem 1ot the company as of December 31, 2015. and the last two columns contain the adjusted Interpreting unadjusted balance as of the same date, X-column table for Yan Consulting Company follows. The first two columns contain the unadjusted Freks and adjusted trial balances, and preparing financial statements Adjusted Unadjusted C3 A1 P1 P2 L3 Triat Balance Trial Balance Adjustments $ 45.000 Cash $ 45,000 Accounts receiyable 099'99 000'ZI 3,600 Office supplies 000'0৮ 8,200 Prepaid insurance 000'0 Office equipment 120,000 $ 30,000 Accumulated depreciation-- Office equip. 'Accounts payable 000' 2,150 $ 20,000 26,000 000'91 Interest payable Salaries payable 27,800 0. 0. 40,000 000'SL Unearned consulting fees 80,200 75,000 Long-term notes payable Z. Yan, Capital Z. Yan, Withdrawals 80,200 253,460 20.000 234,600 10,000 Consulting fees earned Depreciation expense- Office equip. 000'8 10.750 009'
Transcribed Image Text:A table for Yan The first two columns contain the 3-4B Chapter 3 Adjusting Accounts and Preparing Financial Statements Additional. Information Items An analysis of the Institute's insurance policies shows that $9,500 of coverage has expired. An inventory count shows that teaching supplies čosting $20,000 are available at ycar-end 2015 c. Annual depreciation on the equipment is $5,000. d. Annual depreciation on the professional library is $2,400. On November 1, the Institute agreed to do a special five-month course (starting immediately) for a client The contract calls for a $14,300 monthly fee, and the client paid the first two months' fees in ndvance. When the cash was received, the Unearned Training Fees account was credited. The last two months' fees will be recorded when collected in 2016. + On October 15, the Institute agreed to teach a four-month class (beginning immediately) to an indi- vidual for $2,300 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (The Institute's accruals are applicd to the necarest half-month; for example, October recognizes one-half month accrual.) g. The Institute's only employee is paid weekly. As of the end of the year, three days' salaries have ac- crued at the rate of $150 per day. h. The balance in the Prepaid Rent account represents rent for December. Required 1. Prepare T-accounts (representing the ledger) with balances from the unadjusted trial balance. 2. Prepare the nccessary adjusting journal entries for items a through h, and post them to the T-accounts. Assume that adjusting entries are made only at year-end. 3. Update balances in the T-accounts for the adjusting entries and prepare an adjusted trial balance. Check (2e) Cr. Training Fees Earned, $28,600: (2/) Cr. Tuition Fees Earne $5,750, (3) Adj. trial balar tolals, $344,600; (4) Net * Frepare the company's income statement and statement of owner's equity for the year 2015, and pre- incorne, $54,200: Encling pare its balance.sheet as of December 31, 2015. Alonzo, Capital, $ 105,700 trial balem 1ot the company as of December 31, 2015. and the last two columns contain the adjusted Interpreting unadjusted balance as of the same date, X-column table for Yan Consulting Company follows. The first two columns contain the unadjusted Freks and adjusted trial balances, and preparing financial statements Adjusted Unadjusted C3 A1 P1 P2 L3 Triat Balance Trial Balance Adjustments $ 45.000 Cash $ 45,000 Accounts receiyable 099'99 000'ZI 3,600 Office supplies 000'0৮ 8,200 Prepaid insurance 000'0 Office equipment 120,000 $ 30,000 Accumulated depreciation-- Office equip. 'Accounts payable 000' 2,150 $ 20,000 26,000 000'91 Interest payable Salaries payable 27,800 0. 0. 40,000 000'SL Unearned consulting fees 80,200 75,000 Long-term notes payable Z. Yan, Capital Z. Yan, Withdrawals 80,200 253,460 20.000 234,600 10,000 Consulting fees earned Depreciation expense- Office equip. 000'8 10.750 009'
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