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Problem 3-3A (Continued)
Part 3
WELLS TECHNICAL INSTITUTE
Adjusted Trial Balance
December 31, 2015
Debit Credit
Cash........................................................................ $ 34,000
Accounts receivable............................................... 7,500
Teaching supplies ................................................. 2,800
Prepaid insurance.................................................. 9,600
Prepaid rent............................................................ 0
Utilities expense..................................................... 6,400 _______
Totals
.......................................................................
$345,700
$345,700
Problem 3-3A (Continued)
Part 4
WELLS TECHNICAL INSTITUTE
Income Statement
For Year Ended December 31, 2015
Revenues
Tuition fees earned........................................... $131,400
Training fees earned......................................... 45 ,000
Total revenues................................................... $176,400
WELLS TECHNICAL INSTITUTE
Statement of Owner’s Equity
For Year Ended December 31, 2015
T. Wells, Capital, December 31, 2014................................. $ 90,000
Problem 3-3A (Concluded)
WELLS TECHNICAL INSTITUTE
Balance Sheet
December 31, 2015
Assets
Cash.............................................................................. $ 34,000
Accounts receivable..................................................... 7,500
Teaching supplies......................................................... 2,800
Liabilities
Accounts payable......................................................... $ 26,000
Salaries payable............................................................ 400
Problem 3-4A (45 minutes) — Part 1
Account
Unadjusted
Trial Balance Adjustments
Adjusted
Trial Balance
Cash............................. $ 34,000 $ 34,000
Accounts receivable...... 14,000 (a) 8,000 22,000
Office supplies.............. 16,000 (b) 14,000 2,000
Prepaid insurance......... 8,540 (c) 5,580 2,960
Adjustment description
(a) Earned but uncollected revenues.
(b) Cost of office supplies used.
(c) Cost of expired insurance coverage.
Problem 3-4A (Continued)
Part 2
JKL COMPANY
Income Statement
For Year Ended July 31, 2015
Revenues
Consulting fees earned ............................... $134,240
Expenses
Depreciation expense—Office equipment. . $ 6,000
Salaries expense ......................................... 74,000
JKL COMPANY
Statement of Owner’s Equity
For Year Ended July 31, 2015
J. Logan, Capital, July 31, 2014..................... $40,000
Problem 3-4A (Concluded)
Part 2
JKL COMPANY
Balance Sheet
July 31, 2015
Assets
Cash........................................................................... $ 34,000
Accounts receivable................................................. 22,000
Office supplies.......................................................... 2,000
Liabilities
Accounts payable...................................................... $ 10,000
Interest payable......................................................... 1,000
Equity
Problem 3-5A (50 minutes)
Part 1
CHIARA COMPANY
Income Statement
For Year Ended December 31, 2015
Revenues
Fees earned............................................. $484,000
Interest earned........................................ 24 ,000
Total revenues......................................... $508,000
CHIARA COMPANY
Statement of Owner's Equity
For Year Ended December 31, 2015
R. Chiara, Capital, December 31, 2014............. $255,800
Problem 3-5A (Concluded)
CHIARA COMPANY
Balance Sheet
December 31, 2015
Assets
Cash....................................................................... $ 30,000
Accounts receivable............................................. 52,000
Interest receivable................................................ 18,000
Notes receivable (due in 90 days)........................ 168,000
Liabilities
Accounts payable................................................. $ 96,000
Interest payable..................................................... 20,000
Equity
R. Chiara, Capital.................................................. 297,000
Total liabilities and equity..................................... $600,000
Part 2
Problem 3-6AA (40 minutes)
Part 1
Assume prepaid expenses are recorded as assets and unearned revenues as liabilities.
Nov. 1 Prepaid Advertising ...................................... 1,800
Cash......................................................... 1,800
Paid for future advertising.
1 Prepaid Insurance.......................................... 2,460
Cash......................................................... 2,460
Paid insurance for one year.
Problem 3-6AA (Continued)
Part 2
Assume prepaid expenses are recorded as expenses and unearned revenues as revenues.
Nov. 1 Advertising Expense...................................... 1,800
Cash......................................................... 1,800
Paid for future advertising.
1 Insurance Expense........................................ 2,460
Cash......................................................... 2,460
Paid insurance for one year.
30 Cash................................................................ 3,600
Service Fees Earned............................... 3,600
Received fees in advance.
Problem 3-6AA (Concluded)
