Required information
[The following information applies to the questions
displayed below.]
Wells Technical Institute (WTI), a school owned by Tristana Wells,
provides training to individuals who pay tuition directly to the
school. WTI also offers training to groups in off-site locations.
WTI 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
WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 |
|||||
Debit | Credit | ||||
Cash | $ | 28,000 | |||
Accounts receivable | 0 | ||||
Teaching supplies | 10,768 | ||||
Prepaid insurance | 16,155 | ||||
Prepaid rent | 2,155 | ||||
Professional library | 32,307 | ||||
Accumulated depreciation—Professional library | $ | 9,693 | |||
Equipment | 98,000 | ||||
Accumulated depreciation—Equipment | 17,232 | ||||
Accounts payable | 22,000 | ||||
Salaries payable | 0 | ||||
Unearned training fees | 11,000 | ||||
Common stock | 23,738 | ||||
Retained earnings | 85,000 | ||||
Dividends | 43,078 | ||||
Tuition fees earned | 109,846 | ||||
Training fees earned | 40,923 | ||||
Depreciation expense—Professional library | 0 | ||||
Depreciation expense—Equipment | 0 | ||||
Salaries expense | 51,694 | ||||
Insurance expense | 0 | ||||
Rent expense | 23,705 | ||||
Teaching supplies expense | 0 | ||||
Advertising expense | 7,539 | ||||
Utilities expense | 6,031 | ||||
Totals | $ | 319,432 | $ | 319,432 | |
Required:
1. Prepare the necessary adjusting journal entries
for items a through h. Assume that adjusting
entries are made only at year-end.
Adjusting entry
No | Account and explanation | Debit | Credit |
1 | Insurance expense | 4129 | |
Prepaid insurance | 4129 | ||
2 | Teaching Supplies expense (10768-3578) | 7190 | |
Teaching Supplies | 7190 | ||
3 | Depreciation expense | 16515 | |
Accumulated depreciation-equipment | 16515 | ||
4 | Depreciation expense | 8258 | |
Accumulated depreciation-Professional library | 8258 | ||
5 | Unearned training fees | 4400 | |
Training fees earned | 4400 | ||
6 | Account receivable | 14800 | |
Tuition fees earned | 14800 | ||
7 | Salaries expense | 400 | |
Salaries payable | 400 | ||
8 | Rent expense | 2155 | |
Prepaid rent | 2155 | ||
Required information [The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a...
Required information [The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI 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...
Required information [The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI 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...
Required information [The following information applies to the questions displayed below.) Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI 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...
Required information [The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI 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...
Required information [The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI 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...
Required information [The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI 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...
Required information [The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI 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...
Required information The following information applies to the questions displayed below) Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI 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...
Required information [The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI 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...
Required information [The following information applies to the questions displayed below.) Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI 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...