Question

Required information The following information applies to the questions displayed below) Wes Technical Institute WTA a school owned by Tristana Wells, provides training to individuals who pay tution directly to the school WTI also offers training to groups in on-site locations. WTI Intially records prepaid expenses and unearned revenues in balance sheet accounts. Its unad usted trial balance as of December 31 follows along with descriptions of items a through that require ad usting entries on December 31 Additional Information Items a. An analysis of Wr's Insurance policies shows that $3.500 of coverage has expired. b. An Inventory count shows that teaching supoiles costing $3.120 are available at year-end. c. Annual depreciation on the equipment is $14,400. d. Annual depreciation on the professional library is $7.200 e. On September 1, WTI agreed to do five courses for a client for $2.500 each. Two courses w start immediately and finish before the end of the year. Three courses will not begin unt next year. The cilent pald $12.500 cash in advance for all five courses on September 1, and WTI Credited Uneamed Training Fees, f. On October 15, WTI agreed to teach a four-month class beginning immediately for an executive with payment due at the end of the class. At December 31, $11,450 of the tuition has been earned by WTL Q. 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 Credit $ 9,171 16,303 27.000 WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit canh. $ 26,491 Accounts receivable Teaching supplies 10, 187 Prepaid Insurance 15,284 Prepaid rent 2.039 Professional Library 30,565 Accumulated depreciation Professional Library Equipment 99,000 Accumulated depreciation Equipment Accounts payable Salaries payable Unearned training fees Common stock Retained earnings Dividende 40,755 Buition fees earned raining fees earned Depreciation expense Professional Library Depreciation expense Equipment Salaries expense 43,907 Insurance expense Rent expense 22,429 Teaching supplies expense advertising expense 7,132 Utilities expense 5,706 Totale $308.495 12,500 23,880 77,000 103,924 38,717 $308.495

Answer 1

WTI Wells Technical Institute Journal entries No. Account a Insurance expense Prepaid Insurance Credit Calculation Debit $ 3,600 $ 3,600 b $ 7,067 =10,187-3,120 Teaching Supplies expense Teaching Supplies $ 7,067 с $ 14,400 Depreciation expense-Equipment Accumulated Depreciation Equipment $ 14,400 d $ 7,200 Depreciation expense- Prof Library Accumulated Depreciation-Professional Library $ 7,200 $ 5,000 =2,500*2 Unearned Training Fees Training fees eanred $ 5,000 $ 11,450 Accounts Receivable Tuition fees eanred $ 11,450 g $ 400 = 100*2*2 Salaries expense Salaries Payable $ 400 $ 2,039 Rent expense Prepaid Rent $ 2,039

Wells Technical Institute T Accounts Date Debit Date Cash Unadj Bal $ 26,491 Credit Credit Date Debit Date Equipment Unadj Bal $ 99,000 Adj Bal $ 26,491 Accounts Receivable Unadj Bal $ - 31-Dec $ 11,450 Adj Bal $ 99,000 Accum. Depr. - Equipment Unadj Bal $ 16,303 31-Dec $ 14,400 Adj Bal $ 11,450 Teaching Supplies $ 10,187 31-Dec $ Adj Bal $30,703 Accounts Payable Unadj Bal $ 27,000 Unadj Bal 7,067 Adj Bal $ 3,120 Prepaid Insurance $ 15,284 31-Dec $ Adj Bal $ 27,000 Salaries Payable Unadj Bal $ - 31-Dec $ 400 Unadj Bal 3,600 Adj Bal $ 11,684 Prepaid Rent $ 2,039 31-Dec $ Adj Bal $ 400 Unearned Training Fees Unadj Bal $ 12,500 31-Dec $ 5,000 Unadj Bal 2,039 Adj Bal $ - Professional Library $ 30,565 Adj Bal $ 7,500 Common Stock Unadj Bal $ 23,880 Unadj Bal $ 23,880 Adj Bal $ 30,565 Adj Bal Accum. Depr. - Professional Library Dividends Unadj Bal $ 9,171 Unadj Bal $ 40,755 31-Dec $ 7,200 Adj Bal Adj Bal $ 16,371 Tuition fees earned Unadj Bal $ 103,924 31-Dec $ 11,450 $ 40,755 Retained Earnings Unadj Bal $ 77,000 $77,000 Adj Bal $ 115,374 Training fees earned Unadj Bal $ 38,717 31-Dec $ 5,000 Adj Bal Rent expense Unadj Bal $ 22,429 31-Dec $ 2,039 Adj Bal $ 43,717 Depreciation expense-Professional Library Unadj Bal $ 31-Dec $ 7,200 Adj Bal $ 24,468 Teaching Supplies expense Unadj Bal $ 31-Dec $ 7,067 Adj Bal $ 7,200 Depreciation expense-Equipment Unadj Bal $ 31-Dec $ 14,400 Adj Bal $ 7,067 Advertising expense Unadj Bal $ 7,132 Adj Bal $ 14,400 Salaries expense Unadj Bal $ 48,907 31-Dec $ 400 Adj Bal $ 7,132 Utilities expense Unadj Bal $ 5,706 Adj Bal $ 5,706 Adj Bal $49,307 Insurance expense Unadj Bal $ . 31-Dec $ 3,600 Adj Bal $ 3,600

Adjusted TB Debit Credit 26,491 11,450 3,120 11,684 30,565 16,371 99,000 Wells Technical Institute Account Names 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 Dividends Tuition fees eanred Training fees eanred Depreciation expense- Prof Library Depreciation expense- Equipment Salaries expense Insurance expense Rent expense Teaching Supplies expense Advertising expense Utilities expense Totals 30,703 27,000 400 7,500 23,880 77,000 40,755 115,374 43,717 7,200 14,400 49,307 3,600 24,468 7,067 7,132 5,706 341,945 341,945