Homework 3-2a - Acco 500 Nel
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Transcript of Homework 3-2a - Acco 500 Nel
UNIVERSIDAD DEL TURABOESCUELA DE NEGOCIOS Y EMPRESARISMO
GURABO, PR
ACCO 500 - Financial Accounting
Libro: Financial Accounting - Information for DecisionsAsignación: Problema 3-2A
Nélida Ramos MolinaS00598030
General JournalWELLS TECHNICAL INSTITUTE
Date Description Debit Credit
Dec. 31 Insurance Expense 2,400
Adjustment (a) Prepaid Insurance 2,400
To record the insurance expired.
31 Teaching Supplies Expenses 5,200
Adjustment (b) Teaching Supplies 5,200
To record supplies used $8,000 -$2,800
31 Depreciation Expense Equipment 13,200
Adjustment (c) Accumulated Depreciation Equipment 13,200
To record equipment depreciation.
31 Depreciation Expense Professional Library 7,200
Adjustment (d) Accumulated depreciation Professional Library 7,200
To record professional library depreciation.
31 Unearned Training fees 5,000
Adjustment (e) Training Fees Earned 5,000
To record 2 month’s training fees collected in advanced.
31 Accounts Receivable 7,500
Adjustment (f) Tuition Fee Earned 7,500
To record tuition earned $3,000 x 2 1/2 months.
31 Salaries Expense 400
Adjustment (g) Salaries Payable 400
To record accrued salaries 2 days x $100 x 2 employees.
31 Prepaid Rent 3,000
Adjustment (h) Rent Expense 3,000
To record prepaid rent.
Problem: 3-2A
Page 1
WELLS TECHNICAL INSTITUTE
Income Statement
For Year Ended December 31, 2008
Revenues
Tuition fees earned $131,400.00
Training fees earned 45,000
Total revenues $176,400.00
Expenses
Depreciation expense - Professional library 7,200
Depreciation expense - Equipment 13,200
Salaries expense 50,400
Insurance expense 2,400
Rent expense 36,000
Teaching supplies expense 5,200
Advertising expense 6,000
Utilities expenses 6,400
Total expenses 126,800
Net income $49,600.00
WELLS TECHNICAL INSTITUTE
Statement of Retained Earnings
For Year Ended December 31, 2008
Retained earnings, December 31, 2007 10,000
Plus: Net income 49,600
59,600
Less: Dividends 50,000
Retained earnings, December 31, 2008 $9,600.00
WELLS TECHNICAL INSTITUTE
Balance Sheet
December 31, 2008
Assets
Cash $34,000.00
Accounts receivable 7,500
Teaching supplies 2,800
Prepaid insurance 9,600
Professional library $35,000.00
Accumulated depreciation - Professional library
(17,200) 17,800
Equipment 80,000
Accumulated depreciation - Equipment (28,200) 51,800
Total assets $123,500.00
Liabilities
Accounts payable $26,000.00
Salaries payable 400
Unearned training fees 7,500
Total liabilities 33,900
Equity
Common stock 80,000
Retained earnings 9,600
Total liabilities and equity $123,500.00
WELLS TECHNICAL INSTITUTE
Work Sheet
December 31, 2008
Account TitlesUnadjusted Trial
BalanceAdjustment Adjusted Trial
BalanceIncome
StatementBalance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 34,000 34,000 34,000
Accounts receivable 0 (f) 7,500 7,500 7,500
Teaching supplies 8,000 (b) 5,200 2,800 2,800
Prepaid insurance 12,000 (a) 2,400 9,600 9,600
Prepaid rent 3,000 (h) 3,000 0
Professional library 35,000 35,000
Accumulated depreciation - Professional library
10,000 (d) 7,200 17,200 17,200
Equipment 80,000 80,000 80,000
Accumulated depreciation - Equipment
15,000 (c) 13,200 28,200 28,200
Accounts Payable 26,000 26,000 26,000
Salaries payable 0 (g) 400 400 400
Unearned training fees 12,500 (e) 5,000 7,500 7,500
Common stock 80,000 80,000 80,000
Retained earnings 10,000 10,000 9,600
Dividends 50,000 50,000
Tuition fees earned 123,900 (f) 7,500 131,400 131,400
Training fees earned 40,000 (e) 5,000 45,000 45,000
Depreciation expense - Professional library
0 (d) 7,200 7,200 7,200
Depreciation expense - Equipment
0 (c) 13,200 13,200 13,200
Salaries expense 50,000 (g) 400 50,400 50,400
Insurance expense 0 (a) 2,400 2,400 2,400
Rent expense 33,000 (h) 3,000 36,000 36,000
Teaching supplies expense
0 (b) 5,200 5,200 5,200
Advertising expense 6,000 6,000 6,000
Utilities expense 6,400 6,400 6,400
Totals 317,400 317,400 43,900 43,900 345,700 345,700 126,800 176,400 133,900 169,900
Net Income 49,600 35,000
Totals 176,400 176,400 169,900 169,900