The unadjusted trial balance and the adjustment data for Porter Business Institute are shown below along with adjusting entry information. What is the impact of the adjusting entries on the balance sheet? Show the calculation for total assets, total liabilities, and equity without the adjustments; show the calculation for total assets, total liabilities, and equity with the adjustments. Which one provides the most accurate presentation of the balance sheet? Porter Business InstituteUnadjusted Trial BalanceDecember 31 (in millions)?Cash…………………………………………. $ 58,000??Accounts receivable…………..………………59,000??Prepaid insurance …………………………...12,000??Equipment

Question

…………………………………….8,000??Accumulated depreciation-equipment ………..  ??$ 2,000Buildings……………………………………….57,500??Accumulated depreciation-buildings…………..??17,500Land………………………………….55,000??Unearned rent…………………………………..??16,000Long-term notes payable……………………….??50,000Common stock……………………….??50,000Retained earnings ……………………………….??65,600Tuition fees earned ……………………….??74,000Training fees earned …………………….??23,400Wages expense ……………………………32,000??Utilities expense ………………………….8,000??Property taxes expense ……………………5,000??Interest expense ……………………………4,000?________Totals ………………………………………..$ 298,500 ?$298,500 Additional information items:a. The Prepaid Insurance account consists of a payment for a 1 year policy. An analysis of the insurance invoice indicates that one half of the policy has expired by the end of the December 31 year-end.b. A cash payment for space sublet for 8 months was received on July 1 and was credited to Unearned Rent.c. Accrued interest expense on the note payable of $1,000 has been incurred but not paid.

What will be an ideal response?

Answer 1