2/24/24, 11:31 PM Assignment Print View

7. Award: 3 out of 3.00 points

Required:
1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.

No Transaction General Journal Debit Credit

1 a. Insurance expense  3,864 

Prepaid insurance  3,864 

2 b. Teaching supplies expense  7,535 

Teaching supplies  7,535 

3 c. Depreciation expense—Equipment  15,458 

Accumulated depreciation—Equipment  15,458 

4 d. Depreciation expense—Professional library  7,729 

Accumulated depreciation—Professional library  7,729 

5 e. Unearned revenue  5,000 

Training revenue  5,000 

6 f. Accounts receivable  12,750 

Tuition revenue  12,750 

7 g. Salaries expense  400 

Salaries payable  400 

8 h. Rent expense  2,178 

Prepaid rent  2,178 

References

Worksheet Learning Objective: 03-P2 Learning Objective: 03-P5 Prepare financial statements
Prepare adjusting entries from an adjusted trial balance.
for deferral of revenues.

Difficulty: 3 Hard Learning Objective: 03-P3

Prepare adjusting entries
for accrued expenses.

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2/24/24, 11:31 PM Assignment Print View

Learning Objective: Learning Objective: 03-P4

03-P1 Prepare Prepare adjusting entries
adjusting entries for for accrued revenues.
deferral of expenses.

Required:
1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.

No Transaction General Journal Debit Credit

1 a. Insurance expense 3,864
Prepaid insurance 3,864

2 b. Teaching supplies expense 7,535

Teaching supplies 7,535

3 c. Depreciation expense—Equipment 15,458

Accumulated depreciation—Equipment 15,458

4 d. Depreciation expense—Professional library 7,729

Accumulated depreciation—Professional library 7,729

5 e. Unearned revenue 5,000

Training revenue 5,000

6 f. Accounts receivable 12,750

Tuition revenue 12,750

7 g. Salaries expense 400

Salaries payable 400

8 h. Rent expense 2,178

Prepaid rent 2,178

Explanation:

1.
Adjustment b:
To record supplies used ($10,884 – $3,349) = $7,535

Adjustment g:
To record accrued salaries (2 days × $100 × 2) = $400

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