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Question 3 Digital Trainers Pte Ltd (DT) provides in-house training in digital marketing for companies. As of 1 January 20X3, the company has the following accounts with normal balances. DT's accounting practice is to record prepaid expenses and unearned revenues in the statement of financial position accounts. $ Cash Teaching supplies 34,500 12,000 Prepaid insurance 18,000 Prepaid rent 9,000 Equipment 126,000 Accumulated depreciation equipment 33,600 Unearned training fee 12,750 Training fee receivable 7,500 Accounts payable Salaries payable 37,500 825 Share capital Retained earnings 75,000 47,325 The following transactions were completed by the company during January 20X3. (i) On 5 January, DT collected $3,500 for the training fee owed. (ii) DT conducted 3 courses. The first course was conducted on 7 January, and it was for the fee of $12,750 that had been collected in the previous month. The second course was conducted on 16 January and the fees of $12,000 were fully collected on the day the course was conducted. The last course was conducted on 31 January and the fee of $6,500 was still outstanding at the end of January 20X3. (iii) DT paid a total of $15,825 for salaries payable and salaries expenses for January 20X3 on 26 January. (iv) An inventory count conducted at the end of January 20X3 shows that only $8,850 of the teaching supplies were available. (v) Depreciation on equipment of $2,100 for the month had not been provided. (vi) The balance in the prepaid rent account represents three months' rental for January to March 20X3. Question 3a Analyse the above information and prepare the trial balance for 1 January 20X3. Question 3b Prepare all necessary journal entries (including adjusting entries). No narration is required. Question 3c Explain the term "adjusting entries".

Question 3 Digital Trainers Pte Ltd (DT) provides in-house training in digital marketing for companies. As of 1 January 20X3, the company has the following accounts with normal balances. DT's accounting practice is to record prepaid expenses and unearned revenues in the statement of financial position accounts. $ Cash Teaching supplies 34,500 12,000 Prepaid insurance 18,000 Prepaid rent 9,000 Equipment 126,000 Accumulated depreciation equipment 33,600 Unearned training fee 12,750 Training fee receivable 7,500 Accounts payable Salaries payable 37,500 825 Share capital Retained earnings 75,000 47,325 The following transactions were completed by the company during January 20X3. (i) On 5 January, DT collected $3,500 for the training fee owed. (ii) DT conducted 3 courses. The first course was conducted on 7 January, and it was for the fee of $12,750 that had been collected in the previous month. The second course was conducted on 16 January and the fees of $12,000 were fully collected on the day the course was conducted. The last course was conducted on 31 January and the fee of $6,500 was still outstanding at the end of January 20X3. (iii) DT paid a total of $15,825 for salaries payable and salaries expenses for January 20X3 on 26 January. (iv) An inventory count conducted at the end of January 20X3 shows that only $8,850 of the teaching supplies were available. (v) Depreciation on equipment of $2,100 for the month had not been provided. (vi) The balance in the prepaid rent account represents three months' rental for January to March 20X3. Question 3a Analyse the above information and prepare the trial balance for 1 January 20X3. Question 3b Prepare all necessary journal entries (including adjusting entries). No narration is required. Question 3c Explain the term "adjusting entries".

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter5: Accounting Systems
Section: Chapter Questions
Problem 2PA: Transactions related to revenue and cash receipts completed by Albany Architects Co. during the...
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Question 3 Digital Trainers Pte Ltd (DT) provides in-house training in digital marketing for companies. As of 1 January 20X3, the company has the following accounts with normal balances. DT's accounting practice is to record prepaid expenses and unearned revenues in the statement of financial position accounts. $ Cash Teaching supplies 34,500 12,000 Prepaid insurance 18,000 Prepaid rent 9,000 Equipment 126,000 Accumulated depreciation equipment 33,600 Unearned training fee 12,750 Training fee receivable 7,500 Accounts payable Salaries payable 37,500 825 Share capital Retained earnings 75,000 47,325 The following transactions were completed by the company during January 20X3. (i) On 5 January, DT collected $3,500 for the training fee owed. (ii) DT conducted 3 courses. The first course was conducted on 7 January, and it was for the fee of $12,750 that had been collected in the previous month. The second course was conducted on 16 January and the fees of $12,000 were fully collected on the day the course was conducted. The last course was conducted on 31 January and the fee of $6,500 was still outstanding at the end of January 20X3. (iii) DT paid a total of $15,825 for salaries payable and salaries expenses for January 20X3 on 26 January. (iv) An inventory count conducted at the end of January 20X3 shows that only $8,850 of the teaching supplies were available. (v) Depreciation on equipment of $2,100 for the month had not been provided. (vi) The balance in the prepaid rent account represents three months' rental for January to March 20X3. Question 3a Analyse the above information and prepare the trial balance for 1 January 20X3. Question 3b Prepare all necessary journal entries (including adjusting entries). No narration is required. Question 3c Explain the term "adjusting entries".
Transcribed Image Text:Question 3 Digital Trainers Pte Ltd (DT) provides in-house training in digital marketing for companies. As of 1 January 20X3, the company has the following accounts with normal balances. DT's accounting practice is to record prepaid expenses and unearned revenues in the statement of financial position accounts. $ Cash Teaching supplies 34,500 12,000 Prepaid insurance 18,000 Prepaid rent 9,000 Equipment 126,000 Accumulated depreciation equipment 33,600 Unearned training fee 12,750 Training fee receivable 7,500 Accounts payable Salaries payable 37,500 825 Share capital Retained earnings 75,000 47,325 The following transactions were completed by the company during January 20X3. (i) On 5 January, DT collected $3,500 for the training fee owed. (ii) DT conducted 3 courses. The first course was conducted on 7 January, and it was for the fee of $12,750 that had been collected in the previous month. The second course was conducted on 16 January and the fees of $12,000 were fully collected on the day the course was conducted. The last course was conducted on 31 January and the fee of $6,500 was still outstanding at the end of January 20X3. (iii) DT paid a total of $15,825 for salaries payable and salaries expenses for January 20X3 on 26 January. (iv) An inventory count conducted at the end of January 20X3 shows that only $8,850 of the teaching supplies were available. (v) Depreciation on equipment of $2,100 for the month had not been provided. (vi) The balance in the prepaid rent account represents three months' rental for January to March 20X3. Question 3a Analyse the above information and prepare the trial balance for 1 January 20X3. Question 3b Prepare all necessary journal entries (including adjusting entries). No narration is required. Question 3c Explain the term "adjusting entries".
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