Student Name:
Class:
Parts 1 and 2
Unadj. Bal. 34,000 Unadj. Bal. 80,000
Bal. 34,000 Bal. 80,000
Correct! Correct!
Unadj. Bal. 0 Unadj. Bal. 15,000
(f) 7,500 ( c) 13,200
Adj. Bal. 7,500 Adj. Bal. 28,200
Correct! Correct!
Unadj. Bal. 8,000 Bal. 26,000
(b) 5,200
Adj. Bal. 2,800 Bal. 26,000
Correct! Correct!
Unadj. Bal. 12,000 Unadj. Bal. 0
(a) 2,400 (g) 400
Adj. Bal. 9,600 Adj. Bal. 400
Correct! Correct!
Unadj. Bal. 3,000 Unadj. Bal. 12,500
(h) 3,000 (e) 5,000
Adj. Bal. 0 Adj. Bal. 7,500
Correct! Correct!
Bal. 35,000 Bal. 90,000
Unadj. Bal. 10,000 Bal. 50,000
(d) 7,200
Instructor
Cash
Problem 03-03A
McGraw-Hill/Irwin
Accounts Receivable
Teaching Supplies
Prepaid Insurance
Professional Library
T-Accounts
Equipment
Prepaid Rent
Accumulated Depreciation-Professional Library
Unearned Training Fees
T. Wells, Withdrawals
WELLS TECHNICAL INSTITUTE
T. Wells, Capital
Accumulated Depreciation – Equipment
Accounts Payable
Salaries Payable
Student Name:
Class:
Instructor
Problem 03-03A
McGraw-Hill/Irwin
Unadj. Bal. 123,900 Unadj. Bal. 33,000
(f) 7,500 (h) 3,000
Adj. Bal. 131,400 Adj. Bal. 36,000
Correct! Correct!
Unadj. Bal. 40,000 Unadj. Bal. 0
(e) 5,000 (b) 5,200
Adj. Bal. 45,000 Adj. Bal. 5,200
Correct! Correct!
Unadj. Bal. 0 Bal. 6,000
(d) 7,200
Adj. Bal. 7,200 Bal. 6,000
Correct! Correct!
Unadj. Bal. 0 Bal. 6,400
( c) 13,200
Adj. Bal. 13,200 Bal. 6,400
Correct! Correct!
Unadj. Bal. 0
(a) 2,400
Adj. Bal. 2,400
Correct!
Depreciation Expense-Professional Library
Insurance Expense
Advertising Expense
Utilities Expense
Tuition Fees Earned
Training Fees Earned
Depreciation Expense-Equipment
Teaching Supplies Expense
Rent Expense
Student Name:
Class:
Instructor
Problem 03-03A
McGraw-Hill/Irwin
Adjustment
Date Account Titles no. Debit Credit
Dec 31
(a) 2,400
2,400 Correct!
(b) 5,200
5,200 Correct!
(c) 13,200
13,200 Correct!
(d) 7,200
7,200 Correct!
(e) 5,000
5,000 Correct!
(f) 7,500
7,500 Correct!
(g) 400
400 Correct!
To record expiration of prepaid rent.
Rent Expense
Prepaid Rent
To record the insurance expired.
General Journal
WELLS TECHNICAL INSTITUTE
To record equipment depreciation.
To record tuition earned
To record accrued salaries
To record supplies used.
To record professional library depreciation.
To record 2 months’ training fees earned that were collected in advance.
Student Name:
Class:
Instructor
Problem 03-03A
McGraw-Hill/Irwin
Debit Credit
34,000$
7,500
2,800
9,600
–
35,000
17,200$
80,000
28,200
26,000
400
45,000
7,200
13,200
50,400
2,400
36,000
Advertising expense
Utilities expense
Teaching supplies expense
T. Wells, Capital
T. Wells, Withdrawals
Tuition fees earned
Unearned training fees
Correct! Correct!
Revenues
Tuition fees earned
45,000
176,400$
7,200
13,200
50,400
2,400
36,000
5,200
6,000
6,400
Total expenses
Prepaid rent
Professional library
Accumulated depreciation-Professional library
Equipment
Training fees earned
December 31, 2013
Adjusted Trial Balance
WELLS TECHNICAL INSTITUTE
Accumulated depreciation-Equipment
Accounts payable
Salaries payable
Cash
Accounts receivable
Teaching supplies
Prepaid insurance
Depreciation expense-Equipment
WELLS TECHNICAL INSTITUTE
Depreciation expense-Professional library
Depreciation expense-Equipment
Salaries expense
Insurance expense
Rent expense
Salaries expense
Insurance expense
Rent expense
Teaching supplies expense
Advertising expense
Utilities expense
Training fees earned
Total revenues
Expenses
Depreciation expense-Professional library
Student Name:
Class:
Instructor
Problem 03-03A
McGraw-Hill/Irwin
90,000$
49,600
139,600$
50,000
89,600$
Correct!
34,000$
7,500
2,800
9,600
35,000$
(17,200) 17,800
80,000
(28,200) 51,800
123,500$
Correct!
26,000$
400
7,500
33,900
123,500$
Total liabilities and equity
T. Wells, Capital
For Year Ended December 31, 2013
Balance Sheet
WELLS TECHNICAL INSTITUTE
For Year Ended December 31, 2013
Statement of Changes in Owner’s Equity
WELLS TECHNICAL INSTITUTE
T. Wells, Capital, December 31, 2013
T. Wells, Capital, December 31, 2012
Plus: net income
Prepaid insurance
Professional library
Salaries payable
Unearned training fees
Total liabilities
Teaching supplies
Accumulated depreciation-Professional library
Equipment
Accumulated depreciation-Equipment
Total assets
Assets
Liabilities
Equity
Accounts payable
Less: Withdrawals by owner
Cash
Accounts receivable
34,000$
–
8,000
12,000
3,000
35,000
10,000$
80,000
15,000
26,000
–
12,500
–
50,000
–
33,000
–
Advertising expense
Utilities expense
T. Wells, Capital
T. Wells, Withdrawals
Tuition fees earned
Training fees earned
Depreciation expense-Professional library
2,400$
2,800$
13,200$
7,200$
2,500$
5$
7,500$
100$
3,000$
5,000$
7,500$
345,700$
49,600$
89,600$
Equipment
Given Data P03-03A:
WELLS TECHNICAL INSTITUTE
December 31, 2013
Unadjusted Trial Balance
Cash
Accounts receivable
Teaching supplies
Prepaid insurance
Prepaid rent
Professional library
Accumulated depreciation-Professional library
Insurance expense
Accumulated depreciation-Equipment
Accounts payable
Salaries payable
Unearned training fees
Depreciation expense-Equipment
Salaries expense
Number of months prepaid
Rent expense
Teaching supplies expense
(a) Expired insurance coverage
(b) Teaching supplies on hand
(c) Annual equipment depreciation
(d) Annual professional library depreciation
(e) Training fees earned per month beginning Nov. 1
(2f) Cr. Tuition Fees Earned
(3) Adjusting Trial Balance totals
(4) Net income
Ending T. Wells, Capital
(f) Unpaid monthly tuition for student beginning Oct. 15
(g) Two employees accrue wages for two days (daily wage)
(h) Balance in Prepaid Rent account is for December
Check figures:
(2e) Cr. Training Fees Earned
Student Name:
Class:
34,000$ 34,000$
14,000 (a) 8,000 22,000
16,000 (b) 14,000 2,000
8,540 (c) 5,580 2,960
84,000 84,000
14,000$ (d) 6,000 20,000$
9,100 (e) 900 10,000
– (f) 1,000 1,000
– (g) 7,000 7,000
18,000 (h) 3,000 15,000
52,000 52,000
67,000 (g) 7,000 74,000
1,200 (f) 1,000 2,200
– (c) 5,580 5,580
14,500 – 14,500
– (b) 14,000 14,000
12,100 (e) 900 13,000
J. Logan, Withdrawals
Consulting fees earned
J. Logan, Capital
Depreciation expense, Office equipment
256,340$ 256,340$ 45,480$ 45,480$ 279,240$ 279,240$
Correct! Correct!
Cost of expired insurance coverage.
Depreciation expense on office equipment.
Incurred but unpaid advertising expense.
Earned but uncollected revenues.
Office equipment
Accumulated depreciation, Office equipment
Trial Balance
Trial Balance
Adjustments
July 31, 2013
JKL COMPANY
Accounts receivable
Cash
Office supplies
Prepaid insurance
Long-term notes payable
Adjusted
Unadjusted
McGraw-Hill/Irwin
Insurance expense
Unearned consulting fees
Salaries expense
Interest expense
Problem 03-04A
Instructor
Office supplies expense
Advertising expense
Totals
Adjustment description:
Rent expense
Accounts payable
Interest payable
Salaries payable
Student Name:
Class:
McGraw-Hill/Irwin
Problem 03-04A
Instructor
(f)
(g)
(h)
Earned revenues previously received in advance.
Incurred but unpaid interest expense.
Incurred but unpaid salaries expense.
Student Name:
Class:
McGraw-Hill/Irwin
Problem 03-04A
Instructor
134,240$
6,000$
74,000
2,200
5,580
14,500
14,000
13,000
129,280
4,960$
Correct!
Less: Owner withdrawals
Plus: Net income
J. Logan, Capital, July 31, 2012
For Year Ended July 31, 2013
Income Statement
JKL COMPANY
For Year Ended July 31, 2013
Statement of Owner’s Equity
JKL COMPANY
Revenues:
Net income
Consulting fees earned
Expenses:
Depreciation expense – Office equipment
Salaries expense
Interest expense
Insurance expense
Rent expense
Office supplies expense
Advertising expense
Total expenses
Student Name:
Class:
McGraw-Hill/Irwin
Problem 03-04A
Instructor
34,000$
22,000
2,000
2,960
84,000$
(20,000) 64,000
124,960$
10,000$
1,000
7,000
15,000
52,000
85,000
39,960
124,960$
Correct!
Office equipment
July 31, 2013
Balance Sheet
JKL COMPANY
Assets
Cash
Accounts receivable
Office supplies
Prepaid insurance
Total liabilities and equity
Equity
Accumulated depreciation-Office equipment
Total assets
Accounts payable
Interest payable
Salaries payable
Liabilities
Unearned consulting fees
Long-term notes payable
Total liabilities
J. Logan, Capital
Unadjusted Adjusted
Trial Balance Adjustments Trial Balance
34,000$ 34,000$
14,000 22,000
16,000 2,000
8,540 2,960
84,000 84,000
14,000$ 20,000$
9,100 10,000
– 1,000
– 7,000
18,000 15,000
52,000 52,000
40,000 40,000
5,000 5,000
123,240 134,240
– 6,000
67,000 74,000
1,200 2,200
– 5,580
14,500 14,500
– 14,000
12,100 13,000
256,340$ 256,340$ 279,240$ 279,240$
40,000$
5,000$
4,960$
39,960$
124,960$
Long-term notes payable
Prepaid insurance
Office equipment
Given Data P03-04A:
July 31, 2013
JKL COMPANY
Accounts receivable
Cash
Office supplies
Accumulated depreciation, Office equipment
Accounts payable
Interest payable
Salaries payable
Unearned consulting fees
J. Logan, Capital
J. Logan, Withdrawals
Consulting fees earned
Depreciation expense, Office equipment
Salaries expense
Interest expense
Insurance expense
Rent expense
Office supplies expense
Advertising expense
Totals
J. Logan, Capital (7/31/2013)
Total assets
Additional information:
Current-year withdrawals
Check figures:
(2) Net income
J. Logan, Capital, July 31, 2012