Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2,…
The following solution is suggested to handle the subject “Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2,…“. Let’s keep an eye on the content below!
Question “Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2,…”
Answer
3-a)
WELLS TECHNICAL INSTITUTE | ||
Statement of Income | ||
The Year Ended December 31 | ||
Revenue: | ||
Earn tuition fees | $118196 | |
Earn training fees | 46323 | |
Total revenues | $164519 | |
Expenses: | ||
Depreciation expense–Professional library | 6142 | |
Depreciation expense–Equipment | 12285 | |
Salaries expense | 52094 | |
Insurance costs | 3071 | |
Rent expense | 25860 | |
Cost of teaching supplies | 8106 | |
Advertising expenses | 7539 | |
Utilities expense | 6031 | |
Total expenses | 121128 | |
Net income | $43391 |
Tuition fees earned = $109846+8350= $118196
Training fees earned = $40923+ ($2700*2)= $46323
Salary expense = $51694+ ($100*2*2) = $52094
Rent expense= $23705+2155= $25860
Cost of teaching supplies = $0+8106 = $8106
b.
WELLS TECHNICAL INSTITUTE | |
Statement of Owner’s Equity | |
The Year Ended December 31 | |
T.Wells Capital, December 31, prior year end | $68493 |
Add: Net income | 43391 |
111884 | |
Weaker: Withdrawals | 43078 |
T.Wells Capital, December 31, 2018 end | $68806 |
c.
WELLS TECHNICAL INSTITUTE | ||
Balance Sheet | ||
December 31 | ||
ASSETS | ||
Cash | $28000 | |
Receivables | 8350 | |
Supplies for teachers | 2662 | |
Prepaid insurance | 13084 | |
Professional library | $32307 | |
Less: Accumulated depreciation–Professional library | 15835 | 16472 |
Equipment | $75368 | |
Less: Accumulated depreciation–Equipment | 29517 | 45851 |
Total assets | $114419 | |
LIABILITIES | ||
Accounts payable | $37113 | |
Salaries payable | 400 | |
Training fees that are not earned | 8100 | |
Total liabilities | $45613 | |
EQUITY | ||
T.Wells Capital | $68806 | |
Equity and total liabilities | $114419 | |
Receivables = $0+8350 = $8350
Prepaid insurance = $16155-3071 = $13084
Accumulated depreciation–Professional library= $9693+6142= $15835
Accumulated depreciation–Equipment= $17232+12285= $29517
Salaries payable= $100*2*2= $400
Unearned training fees = $13500-($2700*2)= 8100
Conclusion
Above is the solution for “Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2,…“. We hope that you find a good answer and gain the knowledge about this topic of business.