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Wells Technical Institute | |||||||
Work Sheet | Unadjusted | Adjustments | Adjusted | Remarks | |||
Account Titles | Debit | Credit | Debit | Credit | Debit | Credit | |
Cash | 28,000.00 | 28,000.00 | |||||
Accounts Receivable | 10,047.50 | 10,047.50 | $ 4,019 per month. Receivable from 15th October i.e. 2.5 months till 31st December. So $ 4,019*2.5= $ 10,047.50. | ||||
Teaching Supplies | 10,768.00 | 7,762.00 | 3,006.00 | Supplies on hand at year-end, $3,006. So $ 10,768- $ 3,006= $ 7.7762 consumed. | |||
Prepaid Insurance | 16,155.00 | 3,468.00 | 12,687.00 | $ 3,468 prepaid insurance is expired. | |||
Prepaid Rent | 2,155.00 | 2,155.00 | - | Whole Prepaid Rent is for December. | |||
Professional Library | 32,307.00 | 32,307.00 | |||||
Accumulated Depreciation- Professional Library | 9,693.00 | 6,936.00 | 16,629.00 | Depreciation on Professional Library is $ 6,936. | |||
Equipment | 75,368.00 | 75,368.00 | |||||
Accumulated Depreciation- Equipment | 17,232.00 | 13,781.00 | 31,013.00 | Depreciation on equipment $ 13,781. | |||
Accounts Payable | 36,613.00 | 36,613.00 | |||||
Salaries Payable | 400.00 | 400.00 | $ 100 payable each day for 2 employee i.e. $ 100*2days*2employees= $ 400. | ||||
Unearned Training Fees | 14,000.00 | 5,600.00 | 8,400.00 | Training fees earned at $ 2,800 per month from November to December i.e. $ 2,800*2= $ 5,600. | |||
Common Stock | 12,000.00 | 12,000.00 | |||||
Retained Earnings | 56,493.00 | 56,493.00 | |||||
Dividends | 43,078.00 | 43,078.00 | |||||
Tuition Fees Earned | 109,846.00 | 10,047.50 | 119,893.50 | $ 4,019 per month. Receivable from 15th October i.e. 2.5 months till 31st December. So $ 4,019*2.5= $ 10,047.50. | |||
Training Fees Earned | 40,923.00 | 5,600.00 | 46,523.00 | Training fees earned at $ 2,800 per month from November to December i.e. $ 2,800*2= $ 5,600. | |||
Depreciation- Professional Library | 6,936.00 | 6,936.00 | Depreciation on Professional Library is $ 6,936. | ||||
Depreciation- Equipment | 13,781.00 | 13,781.00 | Depreciation on equipment $ 13,781. | ||||
Salaries Expense | 51,694.00 | 400.00 | 52,094.00 | $ 100 payable each day for 2 employee i.e. $ 100*2days*2employees= $ 400. | |||
Insurance Expense | 3,468.00 | 3,468.00 | $ 3,468 prepaid insurance is expired. | ||||
Rent Expense | 23,705.00 | 2,155.00 | 25,860.00 | Whole Prepaid Rent is for December. | |||
Teaching Supplies Expense | 7,762.00 | 7,762.00 | Supplies on hand at year-end, $3,006. So $ 10,768- $ 3,006= $ 7.7762 consumed. | ||||
Advertising Expense | 7,539.00 | 7,539.00 | |||||
Utilities Expense | 6,031.00 | 6,031.00 | |||||
Total | 296,800.00 | 296,800.00 | 50,149.50 | 50,149.50 | 327,964.50 | 327,964.50 |
Answer 4-a | |
Income Statement | Amount $ |
Tuition Fees Earned | 119,893.50 |
Training Fees Earned | 46,523.00 |
Total Revenue | 166,416.50 |
Less: | |
Depreciation- Professional Library | 6,936.00 |
Depreciation- Equipment | 13,781.00 |
Salaries Expense | 52,094.00 |
Insurance Expense | 3,468.00 |
Rent Expense | 25,860.00 |
Teaching Supplies Expense | 7,762.00 |
Advertising Expense | 7,539.00 |
Utilities Expense | 6,031.00 |
Total Expense | 123,471.00 |
Net Operating Income | 42,945.50 |
Answer 4-b | |
Statement of Retained Earnings | |
Retained Earnings- Opening Balance | 56,493.00 |
Add: Net Income | 42,945.50 |
Less: Dividends | 43,078.00 |
Retained Earnings- Closing balance | 56,360.50 |
Answer 4-c | ||
Balance Sheet | Amount $ | Amount $ |
Assets | ||
Current Assets | ||
Cash | 28,000.00 | |
Accounts Receivable | 10,047.50 | |
Teaching Supplies | 3,006.00 | |
Prepaid Insurance | 12,687.00 | |
Total Current Assets | 53,740.50 | |
Plant Property & Equipment | ||
Professional Library | 32,307.00 | |
Accumulated Depreciation- Professional Library | (16,629.00) | 15,678.00 |
Equipment | 75,368.00 | |
Accumulated Depreciation- Equipment | (31,013.00) | 44,355.00 |
Total Plant Property & Equipment | 60,033.00 | |
Total Assets | 113,773.50 | |
Liabilities & Stockholder's Equity | ||
Liabilities | ||
Current Liabilities | ||
Accounts Payable | 36,613.00 | |
Salaries Payable | 400.00 | |
Unearned Training Fees | 8,400.00 | |
Total Current Liabilities | 45,413.00 | |
Non Current Liabilities | ||
Total Liabilities | 45,413.00 | |
Stockholder's Equity | ||
Common Stock | 12,000.00 | |
Retained Earnings | 56,360.50 | |
Total Stockholder's Equity | 68,360.50 | |
Total Liabilities & Stockholder's Equity | 113,773.50 |
Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay...
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 Items a. An analysis of WTI's insurance policies shows that $4,129...
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 Items An analysis of WTI's insurance policies shows that $3,864...
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 An analysis of WTI's insurance policies shows that $2,939 of coverage...
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 a. An analysis of WTI's Insurance policies shows that $3,071 of...
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 An analysis of WTI's insurance policies shows that $4,129...
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 An analysis of WTI's insurance policies shows that $3,996 of coverage...
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 An analysis of WTI's insurance policies shows that $2,939 of coverage...
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 athrough h that require adjusting entries on December 31, 2018, follow. Additional Information Items An analysis of WTI's insurance policies shows that $2,400 of...
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, 2015, 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, 2015, follow. Additional Information Items a. An analysis of WTI's insurance policies shows that...
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 An analysis of WTI's insurance policies shows that $3,600 of coverage...