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. 10,000
Bal. 35,000 Bal. 10,000
Correct! Correct!
Unadj. Bal. 10,000 Bal. 80,000
(d) 7,200
Adj. Bal. 17,200 Bal. 80,000
Correct! Correct!
McGraw-Hill/Irwin
Instructor
Cash
Problem 03-03A
Accounts Receivable
Teaching Supplies
Prepaid Insurance
Professional Library
T-Accounts
Equipment
Prepaid Rent
Accumulated Depreciation-Professional Library
Unearned Training Fees
Retained Earnings
Accumulated Depreciation – Equipment
Accounts Payable
Salaries Payable
WELLS TECHNICAL INSTITUTE
Common Stock
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 03-03A
Bal. 50,000
Bal. 50,000
Correct!
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. 50,000
(g) 400
Adj. Bal. 50,400
Correct!
Unadj. Bal. 0
(a) 2,400
Adj. Bal. 2,400
Correct!
Depreciation Expense-Professional Library
Salaries Expense
Insurance Expense
Advertising Expense
Utilities Expense
Dividends
Tuition Fees Earned
Training Fees Earned
Depreciation Expense-Equipment
Teaching Supplies Expense
Rent Expense
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 03-03A
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!
(h) 3,000
3,000 Correct!
Insurance Expense
Salaries Payable
Rent Expense
To record the insurance expired.
General Journal
WELLS TECHNICAL INSTITUTE
To record equipment depreciation.
Accumulated Depreciation-Equipment
To record tuition earned
To record accrued salaries
To record expiration of prepaid rent.
To record supplies used.
To record professional library depreciation.
To record 2 months’ training fees earned that were collected in advance.
Depreciation Expense-Professional Library
Accumul. Depreciation-Professional Library
Adjusting Entries:
Prepaid Insurance
Teaching Supplies Expense
Teaching Supplies
Depreciation Expense-Equipment
Unearned Training Fees
Training Fees Earned
Accounts Receivable
Tuition Fees Earned
Salaries Expense
Prepaid Rent
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 03-03A
Debit Credit
34,000$
7,500
2,800
9,600
–
35,000
17,200$
80,000
28,200
26,000
400
7,500
10,000
80,000
50,000
131,400
45,000
7,200
13,200
50,400
2,400
36,000
5,200
6,000
6,400
345,700$ 345,700$
Correct! Correct!
131,400$
45,000
176,400$
7,200
13,200
50,400
2,400
36,000
5,200
6,000
6,400
126,800
49,600$
Correct!
December 31, 2013
Adjusted Trial Balance
WELLS TECHNICAL INSTITUTE
For Year Ended December 31, 2013
Income Statement
WELLS TECHNICAL INSTITUTE
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 03-03A
80,000$
49,600
129,600$
50,000
79,600$
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
10,000
79,600
123,500$
Correct!
For Year Ended December 31, 2013
Balance Sheet
WELLS TECHNICAL INSTITUTE
For Year Ended December 31, 2013
Statement of Retained Earnings
WELLS TECHNICAL INSTITUTE
Retained earnings, December 31, 2013
Retained earnings, December 31, 2012
Less: Dividends
Plus: net income
Assets
Liabilities
Equity
34,000$
–
8,000
12,000
3,000
35,000
10,000$
80,000
15,000
26,000
–
12,500
10,000
80,000
50,000
Tuition fees earned
Training fees earned
Depreciation expense-Professional library
Depreciation expense-Equipment
Salaries expense
Insurance expense
Rent expense
Teaching supplies expense
Advertising expense
Utilities expense
(a) Expired insurance coverage
(b) Teaching supplies on hand (at cost)
(c) Annual equipment depreciation
(d) Annual professional library depreciation
(e) Training fees earned per month beginning Nov. 1
Number of months prepaid
(2f) Cr. Tuition Fees Earned
(3) Adjusting Trial Balance totals
(4) Net income
(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
WELLS TECHNICAL INSTITUTE
December 31, 2013
Unadjusted Trial Balance
Cash
Accounts receivable
Given Data P03-03A:
Teaching supplies
Prepaid insurance
Prepaid rent
Professional library
Accumulated depreciation-Professional library
Equipment
Accumulated depreciation-Equipment
Accounts payable
Salaries payable
Unearned training fees
Common stock
Retained earnings
Dividends
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
15,000 15,000
25,000 25,000
5,000 5,000
Depreciation expense on office equipment.
Consulting fees earned
Interest expense
Insurance expense
Rent expense
Earned but uncollected revenues.
Depreciation expense, Office equipment
Salaries expense
Office supplies expense
Advertising expense
Adjustment description:
Office equipment
Accumulated depreciation, Office equipment
Trial Balance
Adjusted
Trial Balance
Unadjusted
Adjustments
July 31, 2013
JKL COMPANY
Accounts receivable
Cash
Office supplies
Prepaid insurance
Dividends
Problem 03-04A
McGraw-Hill/Irwin
Common stock
Accounts payable
Interest payable
Salaries payable
Unearned consulting fees
Retained earnings
Long-term notes payable
Instructor
Student Name:
Class:
Problem 03-04A
McGraw-Hill/Irwin
Instructor
(f)
(g)
(h)
Earned revenues previously received in advance.
Incurred but unpaid interest expense.
Incurred but unpaid salaries expense.
Student Name:
Class:
Problem 03-04A
McGraw-Hill/Irwin
Instructor
134,240$
6,000$
74,000
2,200
5,580
14,500
14,000
13,000
129,280
4,960$
Correct!
Plus: Net income
Retained earnings, July 31, 2013
Retained earnings, July 31, 2012
Less: Dividends
Consulting fees earned
Expenses:
Income Statement
JKL COMPANY
For Year Ended July 31, 2013
For Year Ended July 31, 2013
Statement of Retained Earnings
JKL COMPANY
Revenues:
Depreciation expense – Office equipment
Salaries expense
Interest expense
Insurance expense
Rent expense
Office supplies expense
Advertising expense
Total expenses
Net income
Student Name:
Class:
Problem 03-04A
McGraw-Hill/Irwin
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
15,000
24,960
124,960$
Correct!
Cash
Accounts receivable
Office supplies
Prepaid insurance
Office equipment
July 31, 2013
Balance Sheet
JKL COMPANY
Assets
Accumulated depreciation-Office equipment
Total assets
Accounts payable
Interest payable
Salaries payable
Liabilities
Unearned consulting fees
Long-term notes payable
Total liabilities
Retained earnings
Total liabilities and equity
Equity
Common stock