Question

Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts.

[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 Items

a. An analysis of WTI's insurance policies shows that $3,732 of coverage has expired.

b. An inventory count shows that teaching supplies costing $3,235 are available at year-end 2018.

c. Annual depreciation on the equipment is $14,929.

d. Annual depreciation on the professional library is $7,464

e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,600, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2019.

f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,740 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)

g. WTI'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.

h. The balance in the Prepaid Rent account represents rent for December.
WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2018 Credit $ Debit 28,151 10,826 16,242 2,166 32,481 $ 9,746 75,784 17,325 37,886 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned training fees Common stock Retained earnings, December 31, 2017 Dividends Tuition fees earned Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 13,000 12,000 56,862 43,310 110,438 41,143 51,972 23, 826 7,579 6,063 $ 298,400 $298,400

Answer 1

Debit Credit Transaction General Journal Insurance expense Prepaid insurance 3732 3732 b. 7591 Teaching supplies expense Teaching supplies (10826-3235) 7591 14929 Depreciation expense-Equipment Accumulated depreciation- Equipment 14929 7464 Depreciation expense—Professional library Accumulated depreciation- Professional library 7464 e. 5200 Unearned training fees (2600*2) Training fees earned 5200 11850 Accounts receivable (4740*2.5) Tuition fees earned 11850 g. Salaries expense (100*2*2) 400 Salaries payable 400 h. Rent expense 2166 Prepaid rent 2166