Académique Documents
Professionnel Documents
Culture Documents
Problem: 3-2A
Page
General Journal
WELLS TECHNICAL INSTITUTE
Date
Dec.
Description
31
Adjustment (a)
Insurance Expense
Debit
Credit
2,400
Prepaid Insurance
2,400
31
Adjustment (b)
5,200
Teaching Supplies
5,200
31
Adjustment (c)
13,200
13,200
31
Adjustment (d)
7,200
7,200
31
Adjustment (e)
5,000
5,000
31
Adjustment (f)
Accounts Receivable
7,500
7,500
31
Adjustment (g)
Salaries Expense
400
Salaries Payable
400
31
Adjustment (h)
Prepaid Rent
Rent Expense
To record prepaid rent.
3,000
3,000
$131,400.00
45,000
Total revenues
$176,400.00
Expenses
Depreciation expense - Professional library
7,200
13,200
Salaries expense
50,400
Insurance expense
2,400
Rent expense
36,000
5,200
Advertising expense
6,000
Utilities expenses
6,400
Total expenses
126,800
Net income
$49,600.00
10,000
49,600
59,600
Less: Dividends
Retained earnings, December 31, 2008
50,000
$9,600.00
$34,000.00
Accounts receivable
7,500
Teaching supplies
2,800
Prepaid insurance
9,600
Professional library
$35,000.00
(17,200)
17,800
80,000
(28,200)
51,800
$123,500.00
Liabilities
Accounts payable
$26,000.00
Salaries payable
400
7,500
33,900
Equity
Common stock
Retained earnings
Total liabilities and equity
80,000
9,600
$123,500.00
Account Titles
Unadjusted Trial
Balance
Dr.
Cash
Accounts receivable
Adjustment
Cr.
Dr.
Adjusted Trial
Balance
Cr.
Dr.
34,000
0
(f) 7,500
Cr.
Income
Statement
Dr.
Cr.
Balance Sheet
Dr.
34,000
34,000
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
3,000
(h)
3,000
Prepaid rent
Professional library
35,000
Accumulated depreciation
- Professional library
Equipment
35,000
10,000
(d)
7,200
80,000
17,200
17,200
80,000
Accumulated depreciation
- Equipment
15,000
Accounts Payable
26,000
Salaries payable
Cr.
(c) 13,200
(g)
400
80,000
28,200
28,200
26,000
26,000
400
400
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
123,900
(f)
7,500
131,400
131,400
40,000
(e)
5,000
45,000
45,000
(d) 7,200
7,200
7,200
(c) 13,200
13,200
13,200
(g)
400
50,400
50,400
(a) 2,400
2,400
2,400
33,000
(h) 3,000
36,000
36,000
(b) 5,200
5,200
5,200
Salaries expense
Insurance expense
Rent expense
Teaching supplies
expense
50,000
Advertising expense
6,000
6,000
6,000
Utilities expense
6,400
6,400
6,400
Totals
Net Income
Totals
317,400 317,400
43,900
43,900
133,900 169,900
35,000
169,900 169,900