Question

I am having a hard time balancing my adjusted trial balance. - I made a mistake somewhere but I cannot find it.

Here is the problem:

Following is data for Pitt-Vaughn Academy (PVA). Use the data below to answer each of the enumerated requirements.

Pitt-Vaughn Academy (PVA), a school owned by Lily Pitt-Vaughn, provides training to individuals who pay tuition directly to the school. PVA also offers training to groups in off-site locations. PVA initially records prepaid expenses and unearned revenues in balance sheet accounts. Its unadjusted trial balance as of December 31 follows along with descriptions of items a through h that require adjusting entries on December 31.

Additional Information Items

1. An analysis of PVA's insurance policies shows that $3,732 of coverage has expired.
2. An inventory count shows that teaching supplies costing $3,235 are available at year-end.
3. Annual depreciation on the equipment is $14,929.
4. Annual depreciation on the professional library is $7,464.
5. On September 1, PVA agreed to do five courses for a client for $2,700 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $13,500 cash in advance for all five courses on September 1, and PVA credited Unearned Training Fees.
6. On October 15, PVA agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $11,600 of the tuition has been earned by PVA.
7. PVA's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
8. The balance in the Prepaid Rent account represents rent for December.
   

Pitt-Vaughn Academy Unadjusted Trial Balance December 31
	Debit			Credit
Cash	$	27,396
Accounts receivable		0
Teaching supplies		10,536
Prepaid insurance		15,806
Prepaid rent		2,108
Professional library		31,610
Accumulated depreciation—Professional library				$	9,484
Equipment		73,751
Accumulated depreciation—Equipment					16,861
Accounts payable					36,022
Salaries payable					0
Unearned training fees					13,500
L. Pitt-Vaughn, Capital					67,016
L. Pitt-Vaughn, Withdrawals		42,149
Tuition fees earned					107,477
Training fees earned					40,040
Depreciation expense—Professional library		0
Depreciation expense—Equipment		0
Salaries expense		50,579
Insurance expense		0
Rent expense		23,188
Teaching supplies expense		0
Advertising expense		7,376
Utilities expense		5,901
Totals	$	290,400		$	290,400

Required:

1. Prepare the required adjusting journal entries for items a through h.

Credit Transaction General Journal a. Insurance Expense Prepaid Insurance Debit $ 3,732.00 $ 3,732.00 b. $ 7,301.00 Teaching supplies expense Teaching supplies (supplies 10536-inventory 3235) $ 7,301.00 $ 14,929.00 Depreciation expense - Equipment Accumulated depreciation - Equipment $ 14,929.00 d. $ 7,464.00 Depreciation expense - Professional library Accumulated depreciation - Professional library $ 7,464.00 $ 5,400.00 Unearned training fees Training fees (2 courses x 2700 each) $ 5,400.00 $ 11,600.00 Accounts receivable Tuition fees earned $ 11,600.00 $ 400.00 Salaries expense Salaries payable (daily 100 x 2 employees x 2 days) $ 400.00 h. $ 2, 108.00 Rent Expense Prepaid rent $ 2, 108.00

2. Prepare the Adjusted Trial Balance

Answer 1

Pitt-Vaughn Academy
Adjusted Trial Balance
December 31
Account title	Debit	Credit
Cash	27,396
Accounts receivable	11,600
Teaching supplies	3,235
Prepaid insurance	12,074
Prepaid rent	0
Professional library	31,610
Accumulated depreciation—Professional library		16,948
Equipment	73,751
Accumulated depreciation—Equipment		31,790
Accounts payable		36,022
Salaries payable		400
Unearned training fees		8,100
L. Pitt-Vaughn, Capital		67,016
L. Pitt-Vaughn, Withdrawals	42,149
Tuition fees earned		119,077
Training fees earned		45,440
Depreciation expense—Professional library	7,464
Depreciation expense—Equipment	14,929
Salaries expense	50,979
Insurance expense	3,732
Rent expense	25,296
Teaching supplies expense	7,301
Advertising expense	7,376
Utilities expense	5,901
Totals	324,793	324,793

Calculations:

Work sheet:

	Unadjusted		Adjustments			Adjusted
Account title	Debit	Credit		Debit	Credit	Debit	Credit
Cash	27,396					27,396
Accounts receivable	0		f	11,600		11600
Teaching supplies	10,536		b		7,301	3235
Prepaid insurance	15,806		a		3,732	12,074
Prepaid rent	2,108		h		2,108	0
Professional library	31,610					31,610
Accumulated depreciation—Professional library		9,484	d		7,464		16,948
Equipment	73,751					73,751
Accumulated depreciation—Equipment		16,861	c		14,929		31,790
Accounts payable		36,022					36,022
Salaries payable		0	g		400		400
Unearned training fees		13,500	e	5,400			8,100
L. Pitt-Vaughn, Capital		67,016					67,016
L. Pitt-Vaughn, Withdrawals	42,149					42,149
Tuition fees earned		107,477	f		11,600		119,077
Training fees earned		40,040	e		5,400		45,440
Depreciation expense—Professional library	0		d	7,464		7,464
Depreciation expense—Equipment	0		c	14,929		14,929
Salaries expense	50,579		g	400		50,979
Insurance expense	0		a	3,732		3,732
Rent expense	23,188		h	2,108		25,296
Teaching supplies expense	0		b	7,301		7,301
Advertising expense	7,376					7,376
Utilities expense	5,901					5,901
Totals	290,400	290,400		52,934	52,934	324,793	324,793