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1 award:10outof10.00· · · · · · · ·puirns · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ···Classify the following adjusting entries as involving prepaid expenses, unearned revenues, accruedexpenses, or accrued revenues.Ia.b.c.d.e.-To record expiration of prepaid insurance.Prepaid expenses./To record revenue earned but not yet billed (nor recorded).Accrued revenues./Accrued expenses./././To record wages expense incurred but not yet paid (nor recorded).To record annual depreciation expense.To record revenue earned that was previously received as cash in advance.-Prepaid expensesUnearned revenues

2.award:10 out of10.00a. On July 1, 2013, Lamis Company paid 1,200 for six months of insurance coverage. No adjustmentshave been made to the Prepaid Insurance account, and it is now December 31 , 20 13. Prepare thejournal entry to reflect expiration of the insurance as of December 31 , 2013.Event,a.General Journal' Insurance expenseDebit./Credit1,200./Prepaid insurance1,200./b. Shandi Company has a Supplies account balance of 5,000 on January 1. 2013. During 2013, itpurchased 2,000 of supplies. As of December 31 , 2013, a supplies inventory shows 800 of suppliesavailable. Prepare the adjusting journal entry to correc tly report the balance of the Supplies accountand the Supplies Expense account as of December 31 , 2013.Eventb.General JournalSupplies expenseSuppliesDebitCredit6,200./6,200./

award:3.10 out of10.00a. Bargains Company purchases 20,000 of equipment on January 1, 2013. The equipment is expectedto last five years and be worth 2,000 at the end of that time. Prepare the entry to record one year'sdepreciation expense of 3,600 for the equipment as of December 31, 2013. (If no entry is requiredfor a particular tra nsaction , select " No journal entry required " in the first account field.)Event-a.General JournalIIDepreciation lated depr& 1at1on- Equ1pmentb. Welch Company purchases 10,000 of land on January 1, 20 13. The land is expected to lastindefinitely. What depreciation adjustment, if any, should be made with respect to the Land accountas of December 31 , 2013? (If no entry is required for a particular transaction , select "No j ournalentry required" in the first accou nt field.)Eventb.General JournalNo journal entry requiredDebitIICredit

4.award:10 out of10.00a. Tao Co. receiv es 10.000 cash in advance for 4 months of legal services on October 1, 2013, andrecords it by debit ing Cash and crediting Unearned Revenue both for 10,000. It is now December31 , 2013, and Tao has provided legal services as planned. W hat adjusting entry should Tao make toaccount for the work performed from October 1 through December 3 1, 2013?II,.-Eventa.General JournalUnearned revenueDebitCredit7,500. / ----II7,500. /Legal revenueb. A. Caden started a new publication called Contest News. Its su bsc ribers pay 24 to receive 12issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenuefor the amounts received. The company has 100 new subscribers as of July 1, 2013. It sends ContestNews to each of these subscribers ev ery month from July through December. Assuming no changesin subscribers, prepare the journal entry that Caden must make as of December 31 , 2013. to adjustthe Subsc ription Revenue account and the Unearned Subscription !Revenue account.-Eventb.General JournalUnearned subscription revenueSubscription revenueDebitCredit1,200. / -----1,200. /

5.award:10 out of10.00·············· points· · · · . .Jasmine Culpepper employs one college student every summer in her coffee shop. The student worksthe five weekdays and is paid on the following Monday. {For example . a student who works Mondaythrough Friday, June 1 through June 5. is paid for that work on Monday. June 8.) Culpepper adjusts herbooks monthly. if needed, to show salaries earned but unpaid at month- end. The student works the lastweek of July - Friday is August 1. If the student earns 100 per day, what adjusting entry mustCulpepper make on July 31 to correctly record accrued salaries expense for July?Gener1I Jou1111IEvent1Salanes expenseSalanes payableDebitCredit400./400

awara:6 10 out of10.00· · · · · · · · puinrs · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ··Adjusting entries affect at least one balance sheet account and at least one income statement account.For the following entries, identify the account to be debited and the account to be credited. Indicate whichof the accou nts is the income statement account and which is the balance sheet account. Assume thecompany records all prepayments using balance sheet accounts.a. Entry to record revenue earned that was previously received as cash in advance.AccountsAccount TitleFinancial StatementAccount to be debitedUnearned revenue./ Balance sheetAccount to be credttedRevenue earned./ Income statementb. Entry to record wage expenses incurred but not yet paid (nor recorded).AccountsIIAccount TitleFinancial StatementAccount to be debitedWages expense./ Income statementAccount to be credttedWages payable./ Balance sheetc. Entry to record revenue earned but not y et billed (nor recorded).Account TitleAccountsFinancial Statement.- ·- Account to be debitedAccounts receivable./ Balance sheetAccount to be credttedRevenue earned./ Income statementd . Entry to record expiration of prepaid insurance.AccountsIIAccount TitleFinancial s -mentAccount to be debitedInsurance expense./ Income statementAccount to be creditedPrepaid insurance./ Balance sheet----f././-e. Entry to record annual depreciation expense.Accounts-Account TitleFinancial StatementAccount to be debitedDepreciation expense./ Income statementAccount to be credttedAccumulated depreciation./ Balance sheet ././

7.award:10 out of10.00In its first year of operations, Roma Co. earned 45,000 in revenues and received 37 ,000 cash fromthese customers. The company incurred expenses of 25,500 but had not paid 5,250 of them at yearend. The company also prepaid 6,750 cash for expenses that would be incurred the next year.Calculate the first year's net income under both the cash basis and the accrual basis of accounting.,RevenuesExpensesNet incomeII,.-Cash Basis Accrual Basis37,000 45,000 27,000 25,500 10,000 19,500

8.award:10 out ··pofntsThe following information is taken from Brooke Company's unadjusted and adjusted trial balances.UnadjustedDebitPrepaid insuranceInterest payableCreditAdjustedDebitCredi1 3.700 4, 100 0 800Given this information , which of the following i s likely included among ils adjusting entries?A 400 credit to prepaid insurance and an SBOO debit to interest payable.A S400 debi1 to insurance expense and an S800 debit to interest payable. A 400 debit to insurance expense and an 800 debit to interest expense.0

9.award:10 out of10.00In making adjusting entries at the end of its accounting period, Chao Consulting failed to record 53,200 ofinsurance coverage that had expired. This 3,200 cost had been initially debited to the PrepaidInsurance accou nt. The company also failed to record accrued salaries expense of 52,000. As a result ofthese two oversights, the financial statements for the reporting period will000Understate net income by 2,000.Understate assets by 3,200.Overstate liabilities by 2,000. Understate expenses by 5,200.0

10.award:10 out of10.00During the year, Sereno Co. recorded prepayments of expenses in asset accounts, and cash receipts ofunearned revenues in liability accounts. At the end of its annual accounting period, the company mustmake three adjusting entries: (1 ) accrue salaries expense, (2) adjust the Unearned Services Rev enueaccount to recognize earned revenue, and (3) record services reven ue earned for which cash will bereceived the following period. For each of these adjusting entries (1 ), (2), and (3), indicate the account tobe debited and the account to be credited.Adjusting entries:1. Accrue salaries expense.DebitCred Salaries expenseSalaries payable-- -2. Adjust the Unearned Services Revenue account to recognize earned revenue.DebitUnearned service revenueCred Service revenue3. Record services revenue earned for w hich cash will be received the following period .DebitAccounts receivableCred Service revenue

11 .award:10 out of10.00Deklin Company reported net income of 48,152 and net sales of 425,000 for the current year.Calculate the company's profit margin and interpret the result. Assume that its competitors earn anaverage profit margin of 15%.Profit marginIChoose Numerator:Net income ./.f -I48,152./. Choose Denominator:Net salesI ./ 425,000./ Profit margin--Profit margin11.3%

12 award:10 out ··palms ··Calvin Consulting initially records prepaid and unearned items in income statement accounts. Given thiscompany's accounting prac tices, which of the following applies to the preparation of adjusting entries atthe end of its first accounting period?0Earned but unbilled (and unrecorded) consulting fees are recorded with a debit to UnearnedConsulting Fees and a credit to Consulting Fees Earned.0 The cost of unused office supplies is recorded with a debit to Supplies Expense and a credit to [email protected] Unearned fees (on which cash was received in advance earlier in the period) are recorded with adebit to Consulting Fees Earned and a credit to Unearned Consulting F ees.0 Unpaid salaries are recorded with a debit to Prepaid Salaries and a credit to Salaries Expense.0

13.award:10 out of10.00Answer each of the following questions related to international accounting standards.a. Do financial statements prepared under IFRS normally present assets from least liquid to most liquidor vice-versa?\!l Least liquid to most liquid0Most liquid to least liquid0b. Do financial statements prepared under IFRS normally present liabilities from furthest from maturity tonearest to maturity or v [email protected] Furthest from maturity to nearest to maturity0 Nearest to m aturity to furthest from maturity0

14.award:10 out of10.00One-third of the work related to 15,000 cash received in advance is performed this period .Wages of 1 1,000 are earned by workers but not paid as of December 31, 2013.Depreciation on the company's equipment for 2013 is 11 ,200.The Office Supplies account had a 41 0 debit balance on December 31, 201 2. During 2013, 5,223of office supplies are purchased . A physical count of supplies at De cember 31, 2013, shows 5572 ofsupplies available.e. The Prepaid Insurance account had a 5,000 balance on Dece mber 31, 201 2. An analysis ofinsurance policies shows that 2,000 of unexpired insurance benefits remain at December 31, 201 3.f. The company has earned (but not recorded) 1,000 of interest from investments in CDs for the y earended December 31 , 201 3. The interest revenue will be received on January 10, 2014.g . The company has a bank loan and has incurred (but not recorded) interest expense of 3,500 for theyear ended December 31, 2013. The company must pay the interes t on January 2, 2014.a.b.c.d.For each of the above separate cases, prepare adjusting entries required of financial statements forthe year ended (date of) December 31, 2013. (Assume that prepaid expenses are initially recorded inasset accounts and that fees collected in advance of worl are initially r·ecorded as liabilities. )Transactiona.General /./3,000./Interest receivable./1,000./Interest revenue./Wages expenseWages payablec.Depreciation expense-EquipmentAccumulated depreciation-Equipmentd.Office supplies expenseOffice suppliese.Insurance expensePrepaid insurancef.g.Credit././Unearned fee revenueFee revenueb.DebitInterest expenseInterest payable././5,000./-----nooo111 ,200./ 5,061./I3,ooo.;]1,000./j3,500./3,500./

15.award:10 out of10.00a. Depreciation on the company's equipment for 20 13 is computed to be 17,000.b, The Prepaid Insurance account had a 9,000 debit balance at December 31 , 2013, before adjustingfor the costs of any expired cov erage. An analysis of the company 's insurance policies showed that 1,090 of unexpired insurance coverage remains.c. The Office Supplies account had a 210 debit balance on Decemb er 31 , 20 12; and 2,680 of officesupplies were purchased during the year. The December 31 , 20 13 , physical count showed 248 ofsupplies available.d , Three-fourths of the work related to 13,000 of cash received in advance was performed this period.e. The Prepaid Insurance account had a 5,700 debit balance at December 3 1, 2013, before adjustingfor the costs of any expired coverage. An analysis of insurance policies showed that 4,6 10 ofcoverage had expired.f. Wage expenses of 6,000 have been incurred but are not paid as of December 31, 2013.Prepare adjusting journal entries for the year ended (date of) December 31 , 20 13, for each of theseseparate situations. Assume that prepaid expenses are initially reco rded in asset accounts. Alsoassum e that fees collec ted in advance of work are initially recorded as liabilities.Transactiona.Depreciation expense-EquipmentAccumulated depreciation-Equipmentb.Insurance expensePrepaid insurancec.- :!Office supplies expenseOffice suppliesd.Unearned fee revenueFee revenuee.Insurance expensePrepaid insurancef.DebitGeneral JournalWages expenseWages 642./././9,750./././4,610. /././6,000./7,910./2,642./9,750./14,610./6,000./

16.award:10 out of10.00a. On April 1, the company retained an attorney for a flat monthly fee of 1 ,500. Payment for Aprillegal services was made by the company on May 12.b. A 780,000 note payable requires 9.4% ann ual interest, or 6,110 to be paid at the 20th day ofeach month. The interest was last paid on April 20 and the next payment is due on May 20. As ofApril 30, 2,037 of interest expense has accrued.c. Total weekly salaries expense for all employees is 9,000. This amount is paid at the end of theday on Friday of each five-day workweek. April 30 falls on Tuesday of this y ear, which means thatthe employees had worked two days since the last payday. The ne.xt payday is May 3.The above three separate situations require adjusting journal entries to prepare financial statementsas of April 30. For each situation , present both the April 30 adjusting entry and the subsequent entryduring May to record the payment of the accrued expenses. (Use 36 0 days a year. Do not roundintermediate calcu lations and round your final answers to the nearest dollar amount.)DateGeneral JournalA?r. 30Legal fees expenseLegal fees payableL May 1 Legal fees payableiCashA?r 30I-Interest expenseInterest payable-- -'---May 20LInterest expenseInterest payableCashiA?r 30Salaries expenseSalaries payablel-May03Salaries payableSalaries expenseCashDebit././1,500. 0. /3,600./5,400./9,000./

17.avtard:10 out of10.00Determine the missing amounts in each of these four separate situations a through d.-Supplies available- prior year-enda - Supplies purchase ! during the current yearTotal supplies availableSupplies available- urrent year-endSupplies expense for current yearTcbd1,4001,060 1 3,6046. 1 04 r1,6004,6647,0053,904 11,3815,624*6509504I760I901- 1,375./4,204r I04,779I

18award:10 out of ·palms ··On November 1, 2011, a company paid a 21 ,600 premium on a 36-mon th insurance policy for coveragebeginning on that date. Refer to that policy and fill in the blanks in the following table .Balance SheetIncome StatementPrepaid InsuranceInsurance ExpenseCash Basis .20,400.,1 020 00.,;oAccrual BasisDec 31 , 20 11 31, 20121Dec. 31, 20131--Dec. 31, 2014--I-- 6,000.,10Accrual Basis -- ----l-- Total - - , Cash Basis1,200.,; 21 ,600 ! 21 ,600.,1121 ,600· ' '

19.award:10 out of10.00· · · · · ··· pointsUse the following information to compute profit margin for eac h separate company(Round your answ ers 10 1 decimal place.)Net SalesNet Incomea. 6,306 Profit Margin .9%./Which of the frve companies 1s the most profitable according to the profit margin ratio?Company aCompany b Company cCompany dCompany e0athroughe.

award:9.44outof20 10.00· .polrmr . .Arnez Co. follows the practice of recording prepaid expenses and urnearned revenues in balance sheetaccounts. The company's annual accounting period ends on December 31 , 2013. The followinginformation concerns the adjusting entries to be recorded as of that date.a. The Office Supplies account started the year with a 4,000 ba lance. During 2013, the companypurchased supplies for 1 3,400. which w as added to the Office Supplies account. The inventory ofsupplies available at December 31 , 2013, totaled S2,554 .b. An analysis of the company's insurance policies provided the following facts.PolicyABcMonths ofCoverage2436Date of PurchaseApril 1, 2011April 1, 20 12August 1, 20 1312Cost 14,40012,9602,400The total premium for each policy was paid in full (for all month s) at the purchase date, and thePrepaid Insurance account was debited for the full cost. (Year-end adjusting entries for PrepaidInsurance were properly recorded in all prior years.)c. The company has 15 employees, who earn a total of 1 ,960 in salaries each working day. They arepaid each Monday for their work in the five-day workweek ending on the previous Friday. Assume thatDecember 31 , 20 13, is a Tuesday, and all 15 employees worked the first two days of that week.Because New Year's Day is a paid holiday, they will be paid salaries .for five full days on Monday,January 6, 2014.cl. The company purchased a building on January 1, 20 13. It cost 960,000 and is expected to have a 45,000 salvage value at the end of its predicted 30-year life. Annual depreciation is 30,500.e. Since the company is not large enough to occupy the entire building it owns. it rented space to atenant at 3,000 per month, starting on November 1, 20 13. The re nt was paid on time on November1, and the amount received was credited to the Rent Earned ace cunt. However, the tenant has notpaid the December rent. The company has worked out an agreement with the tenant, who haspromised to pay both December and January rent in full on January 15. The tenant has agreed not tofall behind again.f, On November 1, the company rented space to another tenant for 2,800 per month. The tenant paidfive months' rent in advance on that date. The payment was recorded with a credit to the UnearnedRent account.Required :1. Use the information to prepare adjusting entries as of December 31 , 20 13.Adjusting entries (all dated December 31. 2013).Transactiona.General JournalOffice supplies expenseOffice suppliesb.Insurance expensePrepaid insurancec. Salaries expenseSalaries payabled.Depreciation expense- BuildingAccumulated depreciation-Buildinge.f.Rent receivableDebit././14,846./././7, 120./././3,920./././30,500././3,000./Rent earned./Unearned rent././Rent /5,600./5,600./i2. Prepare journal entries to record the first subsequent cash transaction in 2014 for parts c and e.--DateJan 06General JournalSalaries expenseSalaries payableCashJan 15.CashRent 9,800 .J3,000./x

21 .award:10 out of10.00For each of the following entries. enter the letter of the explanation that rmost closely describes it in thespace beside each entry. (You can use letters m ore than once.)A.B.C.D.E.F.G.H.I.To recordTo recordTo recordTo recordTo recordTo recordTo recordTo recordTo recordreceipt of unearned revenue.this period's earning of prior unearned revenue.payment of an ace rued expense.receipt of an acc rued revenue.an accrued expense.an accrued revenue.this period's use of a prepaid expense.payment of a prepaid expense.this period's depreciation expense.Ex11lanationEIJournal Entries.,/' Interest Expense-Interest Payable-Depreciation Expense./ ----Accumulated DepreciationB-Fees.,/ Unearned Professional--Professional Fees EarnedG-J Insurance ExpensePrepaid Insurance-----c.,/ Sa aries PayableCashH--.,/ Prepaid RentCashE--.,/ Interest ReceivableInterest Revenue-D---- ----.,/ CashUnearned Professional Fees-D---.,/ CashInterest ReceivableG ------.,/ Rent ExpensePre .aid RentICreditI1,000- 4,000- 4,0003,000- f4,200- f-3,0004,200I- 1,4001,400- 4,500- ---4,5006,000-.,/ CashAccounts Receivable (from consulting)A-.,/ Sa aries ExpenseSalaries PayableF---Debit1,0006,000- 5,000- 5,000-- 9,000-9,0007,500- ----7,5002,0002,000- 2,000- 2,ooo

[T/Je iol/owing information applies to t/Je questions displayed below.]Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals whopay tuition directly to the sc hool. WTI also offers training to groups in off-·site locations. Its unadjusted trialbalance as of December 3 1, 2013, follows. WTI initially records prepaid expenses and unearnedrevenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries onDecember 31 , 2013, follow.Additional Information Itemsa. An analysis of WTl's insurance policies shows that 2,400 of coverage has expired.b . An inventory count shows that teaching supplies costing 2,800 are available at year-end 20 13.c. Annual depreciation on the equipment is 13,200.d. Annual depreciation on the professional library is S7,200.e. On Nov ember 1, WTI agreed to do a special six-month course (starting immediately) for a client. Thecontrac t calls for a monthly fee of 2,500, and the client paid the first five months' fees in advance.When the cash was received , the Unearned Training Fees account was credited. The fee for the sixthmonth will be recorded when it is collected in 2014.f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for 3,000 tuition per month payable at the end of the class. The class started on October 15, but nopayment has y et been received . (WTl's accruals are applied to the n earest half-month; for example,October recognizes one-half month accrual.)g . WTl's two employees are paid weekly. As of the end of the year, two days' salaries have accrued atthe rate of 100 per day for each employee.h. The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTEUnadjusted Trial BalanceDecember 31 , 20 13CashAccounts receivableTeaching suppliesPrepaid insurancePrepaid rentProfessional libraryAccumulated depreciation- Professional libraryEquipmentAcc umulated depreciation- EquipmentAccounts payableSalaries pay ableUnearned training feesT. Wells, CapitalT. Wells, WithdrawalsTuition fees earnedTraining fees earnedDepreciation expense-Professional libraryDepreciation expense-EquipmentSalaries expenseInsurance expenseRent expenseTeaching supplies expenseAdvertising expenseUtilities expenseTotalsDebit 34,000Credit08,00012,0003,00035,000 40,0000050,000033,00006,0006,400 317,400 317,400

22.award:10 out of10.00Required :1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entriesare made only at year-end.Adjusting entries (all dated Dec. 3 1, 2013).DateDec 31General JournalCreditInsurance expense,Prepaid insuranceDec 31-2,400./Teaching supplies expense5,200./Teaching supplies5,200./--f--Dec 31Dec 31Depreciation expense-EquipmentAccumulated depreciation- Equipment./Depreciation expense- Professional library./Accumulated depreciation-Professional libraryDec 31Dec 31Training fees earned./,Salaries expenseSalaries payableDec 31Rent expensePra .13,200./7,200./././Accounts receivable13,200./7,200./-- --Unearned training feesTuition fees earnedDec /--1---././3,000./3,000./

23 ·potrns- ························ ··········2.1 Post the balance from the unadjusted trial balance and the adj usting entries in to the T-accounts.I' u nadj. Bal.Cash34,000 1-·-Io034,000-!Adj Bal.,Equipment-- -I:I'I 00:iAdj Bal."Red -:xt ind ·c t:s no respon was exoect-:d ,n a ce ll or a forrrula · ba se-d caku ation is incorrect: nopo nts80,000 1[Unadj. Bal.deducted. 0I"'Red t xt ind·cetes no resp-OO S' Has exoect d in a cell or a forrrula · bas- - 1 caku·ation is i; correct: no.points deductea . .- --, --Accounts Receivableo Unadj. Bal.7,500 1 f7.50 IIIAdj Bal."' ed ! ind'cstespo n ts deducted.I : ·' Ino response was exoected in a cell or a forrru!a· oas?:I ca 'cu ation isi ncorrect nof2,80 o0[Adj Bal.!Adj Bal.points Gedutted.ItI* ed !ext ind'cstes no response was exoected in a ce!I or a fom:ula · basd ca icu adon is incorrect no9,60 [Adj Bal.I-00026,000./------ -I0026,000I4Salaries Payable12,000 10II028,200t Ked tcict ind cat- -s no respon s wes extiect d in a cell or a fow u!a based calcu atic·n is j.-,correct: nopoints deduct.ea.Prepaid Insuranceruoo i ,,,I013,200./Accounts Payableluoo i'''5,200 ./0.,Red teict ind c.ates no response wes ex':lected in a eel! or a forrru !a · bas ca!cu atic·n is i .,correct: nopoJnts deducted.I8,000 1--1---15,000 0IIAdj Bal.Teaching Suppliesruoo i ,,,Accumulated Depreciation-Equipmentluoo i''' 1·It0:[Adj Bal.00././0I0I400 0400 Ri?d text 1nd .cates no resp.on was exoea d 1n a cell or a fo m-u!a ba:sed cak u ation is iT" Correct : n;j" Red text tnd cates no resp.ons. Has expect .d 1n a c:e I or a fo1'0"u!a based ca!cu atic·n ;s incorrect: nopoints deducteC,poir,ts deducted.4IlPrepaid Rent3,000 1Unadj. Bal.0 1./e-YI!Adj. Bal.Unearned Training Feeslh045,000 100''Adj. Bal.12,500 I007,500kRed text ind cat.,s no respon s N t t .ex;)ect-:d in a ce ll or a foTI'l"'u!a ba se-d caku ation 1s jr,correch noooints deducted.4Professional Library3500:IAdj Bal." R d t.:.x:t tnd·c.ates no respon \''iasoolr:ts deducted.IIin ace I or aex ect d --t35,000 Unadj. Bal.T. Wells, Capitalfo m·u la · b as :I90,000 Unadj. Bal.I000090,000Adj. Bal.caku ation ts incorrect; not t ind cates no re spons.e u a-s x;iect .d in a ce !! or a fo 'lT'ula · baserl ca!cu ation is i '\correct: nopoints deducted." Red-! ---.,Accumulated Depreciation-Professional Library: j,t j&L - I§ y al.T. Wells, Withdrawals017.200I R d text ind·c.ates no respon \"ias ex:iect d in a (:e ll o r a fo m· ula · base :I caku ation ts i"'tcorrect; noooints deducted.luoo J&L- 123,900 '0 f0Adj. Bal.· ed t ind cates norespons.e \·;as./ xpect d ,,,. a cell or a fo rrru!a · base-:1 cak u atk t'I is i"lcorrect: no' ' --te05,000 ./0Rent Expense33,ooo fl unadj. Bal. h045,000Unadj. Bal.bAdj. Bal.iAdj Bal.a fo.,,.u !a · bas cak u ation is ir,correct : nc.point deoucted.· : - s, 20 0 '11 3,200 1c13.20 Adj. Bal."a.ed te.xt ind cates no resp-ons.: wa.s X jeCt docints deducted.I"""' .,I1nfo -ntu !a · ba;. caku ation is incorrect :n 50,000 1 400 150,40 It 0 1· I-- -fl.Red :: xt 1rd c t s no respon \Yas O:X ?ect d in a cell or a fo rrrula ba-sd ca k u ation ispoints deducted.4Ij.""'"' ,,,0text ind cates no respons.e \-1as. ;:.xj ected rn a c e!I or a -i:cm-1ula · basnl ca 1c.i' ation is il'l:correct ; nopoints dedu-tted.6,000 106,000-Salaries ExpenseUnadj. Bal.--1Adj. Bal.a ce ll or a- Advertising Expense-1to !*·R:d t ext ind·cat-:s no respon was ex 1:1ect d in a ce ll or a fo rrrula · bas.::-d calcu aticn is hcorrect: nopoints deducted.Depreciation Expense-EquipmentUnadj. Bal.ITeaching Supplies Expense::11 i " ed t-:xt in d ·c tes no r-esp n s.: w:s X ;),ect :d II' a .ce!I or--t " iled ti:Kt ind cates no respons.e was ex,:iect. d 1n a ce ll or a fo"!Tu!a · bas-:-d ca ku ation is i"lccrrect: noooints deducted.Depreciation Expen rofessional Library oo i ''' 3,000.11036,000I:Adj. Bal.t'Red :o:xt in d·c tes no resp-on \-Ja : '?Xp.ected rn a c e.11 .or a fc 1"1Tu!a · ba s.e--d cak u ation :s incorrect nopoints deducted. RedI" R d t :X"t ind.tat"-S no resp.ons. \'J a-5 : xpected tn a ce !I or a fo rrru!a · bas ?d cak u atio:'l is i"lcorrect: noI40,000 0Adj. Bal.Adj. Bal.I - Hpoints deducted.Training Fees Earnedg2,400 r02.400f!Adj Bal.points deducted.Unadj.0 1a0131 ,400IInsurance ExpenseUnadj. Bal.7,500 0' Red t t ind cates no respons.e u a-s x;iect .d in a ce !! or a fo rwula · baserl ca!cu ation ,s i '\ccrrea: nopoints deducted.ITuition Fees EarnedI50,000: Adj Bal.!Adj Bal.*R d000Ii '1ccrrect noUtilitijts Expense6,400.11--Io06,400II-- I000Ite-.xt utd·cates no respon-:.e was ex oec d in a ce ll vr a fo m-u!a basi?d calcu ation is i"'icorrect; nopo.ints dedua.ed.4

2.2 Prepare an adjusted trial balance.WELLS TECHNICAL INSTITUTEAdjusted Trial BalanceDecember 31 , 2013CreditDebitCash Accounts receivable34,000.,17,500.,1r.Teaching supplies2,800.,IPrepaid insurance9,600.,1o.;Prepaid rent135

e. The Prepaid Insurance account had a 5,000 balance on December 31, 201 2. An analysis of insurance policies shows that 2,000 of unexpired insurance benefits remain at December 31, 201 3. f. The company has earned (but not recorded) 1,000 of interest from i