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.
Its unadjusted trial balance as of December 31, 2017, follows. WTI
initially records prepaid expenses and unearned revenues in balance
sheet accounts. Descriptions of items a through h
that require adjusting entries on December 31, 2017, follow.
Additional Information Items
WELLS TECHNICAL INSTITUTE |
|||||
Debit |
Credit |
||||
Cash |
$ |
26,944 |
|||
Accounts receivable |
0 |
||||
Teaching supplies |
10,362 |
||||
Prepaid insurance |
15,545 |
||||
Prepaid rent |
2,073 |
||||
Professional library |
31,088 |
||||
Accumulated depreciation—Professional library |
$ |
9,328 |
|||
Equipment |
72,533 |
||||
Accumulated depreciation—Equipment |
16,582 |
||||
Accounts payable |
34,202 |
||||
Salaries payable |
0 |
||||
Unearned training fees |
14,500 |
||||
Common stock |
14,000 |
||||
Retained earnings |
51,908 |
||||
Dividends |
41,452 |
||||
Tuition fees earned |
105,701 |
||||
Training fees earned |
39,379 |
||||
Depreciation expense—Professional library |
0 |
||||
Depreciation expense—Equipment |
0 |
||||
Salaries expense |
49,743 |
||||
Insurance expense |
0 |
||||
Rent expense |
22,803 |
||||
Teaching supplies expense |
0 |
||||
Advertising expense |
7,254 |
||||
Utilities expense |
5,803 |
||||
Totals |
$ |
285,600 |
$ |
285,600 |
|
Required:
1. Prepare the necessary adjusting journal entries
for items a through h. Assume that adjusting
entries are made only at year-end.
Journal entry worksheet
Note: Enter debits before credits.
8. The balance in the Prepaid Rent account represents rent for December.
|
Adjusting entries:
Transaction | General Journal | Debit | Credit |
a | Insurance expense | $3,732 | |
Prepaid insurance | $3,732 | ||
[To record insurance expense] | |||
b | Teaching Supplies expense [10,362-3,235] | $7,127 | |
Teaching Supplies | $7,127 | ||
[To record supplies expense] | |||
c | Depreciation expense-Equipment | $14,929 | |
Accumulated depreciation-Equipment | $14,929 | ||
[To record depreciation expense on equipment] | |||
d | Depreciation expense-professional library | $7,464 | |
Accumulated depreciation-professional library | $7,464 | ||
[To record depreciation expense on professional library] | |||
e | Unearned training fees | $5,800 | |
Training fees [$2,900 x 2 months] | $5,800 | ||
[To record fees earned from unearned] | |||
f | Accounts receivable | $11,100 | |
Tuition fees earned [4,440 x 2.5 months] | $11,100 | ||
[To record accrued tuition fees earned] | |||
g | Salaries expense [$100 x 2 days x 2 employees] | $400 | |
Salaries payable | $400 | ||
[To record accrued salaries] | |||
h | Rent Expense | $2,073 | |
Prepaid rent | $2,073 | ||
[To record rent expense] |
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. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items athrough h that require adjusting entries on December 31, 2017, follow. 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. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow 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. lts unadjusted trial balance as of December 31, 2018, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2018, follow 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...
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. Its unadjusted trial balance as of December 31, 2018, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2018, follow. Additional Information...