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 | $ | 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 | 104,000 | ||||
Accumulated depreciation—Equipment | 16,582 | ||||
Accounts payable | 24,000 | ||||
Salaries payable | 0 | ||||
Unearned revenue | 13,500 | ||||
Common stock | 32,577 | ||||
Retained earnings | 76,000 | ||||
Dividends | 41,452 | ||||
Tuition revenue | 105,701 | ||||
Training revenue | 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 | $ | 317,067 | $ | 317,067 | |
3-a. Prepare Wells Technical Institute's income
statement for the year.
3-b. Prepare Wells Technical Institute's statement of retained
earnings for the year. The Retained Earnings account balance was
$76,000 on December 31 of the prior year.
3-c. Prepare Wells Technical Institute's balance sheet as of
December 31.
PLEASE
Adjustment Entries as of December 31:
Account Name | Dr | Cr |
Insurance Expense A/c | $ 3,600 | |
To Prepaid Insurance A/c | $ 3,600 | |
(Being expired insurance policies recognized) | ||
Depreciation Expense A/c | $ 21,600 | |
To Accumulated Depreciation - Equipment A/c | $ 14,400 | |
To Accumulated Depreciation - Professional Library A/c | $ 7,200 | |
(Being depreciation recognized) | ||
Unearned Revenue A/c | $ 5,400 | |
To Training Revenue A/c | $ 5,400 | |
(Being revenue recongnized for the finished/completd two courses) | ||
Accrued Revenue A/c | $ 10,950 | |
To Tuition Revenue A/c | $ 10,950 | |
(Being accrued revenue recongnized in repect of the four month class) | ||
Salaries Expense A/c | $ 400 | |
To Accured Salaries A/c | $ 400 | |
(Being accured salaries recognized for two days period) | ||
Rent Expense A/c | $ 2,073 | |
To Prepaid Rent A/c | $ 2,073 | |
(Being rental expense recognized for the December month) |
Income Statement for the year
Particulars | Note | Amount |
Revenue | 1 | $ 1,61,430 |
Expenses | 2 | $ 1,20,518 |
Profit for the year | (1-2) | $ 40,912 |
Balance Sheet as of December 31
Particulars | Note | Amount |
I. Assets | ||
Current Assets | ||
a) Cash in Hand | $ 26,944 | |
b) Accrued Revenue | $ 10,950 | |
c) Inventories (Teaching Supplies) | $ 3,120 | |
d) Prepaid Insurance | $ 11,945 | |
Total Current Assets | $ 52,959 | |
Non-Current Assets | ||
a) Equipment | 3 | $ 73,018 |
b) Professional Library | 4 | $ 14,560 |
Total Non-Current Assets | $ 87,578 | |
Total Assets | $ 1,40,537 | |
II. Liabilities and Equity | ||
Current Liabilites | ||
a) Accured Salaries | $ 400 | |
b) Unearned Revenue (13500-5400) | $ 8,100 | |
b) Accounts Payable | $ 24,000 | |
Total Current Liabilities | $ 32,500 | |
Non-Current Liabilites | $ - | |
Shareholders' Equity | ||
a) Common Stock | $ 32,577 | |
b) Retained Earnings | 5 | $ 75,460 |
Total Shareholders' Equity | $ 1,08,037 | |
Total Liabilites and Equity | $ 1,40,537 | |
Notes: | ||
1. Revenue | ||
Particulars | Amount | |
Training Revenue (39379+5400) | $ 44,779 | |
Tuition Revenue (105701+10950) | $ 1,16,651 | |
$ 1,61,430 | ||
2. Expenses | ||
Particulars | Amount | Amount |
Teaching Supplies Expense | $ 7,242 | |
Insurance Expense | $ 3,600 | |
Salaries Expense (49473+400) | $ 50,143 | |
Rent Expense (22803+2073) | $ 24,876 | |
Advertising Expense | $ 7,254 | |
Utilities Expense | $ 5,803 | |
Depreciation: | ||
Equipment | $ 14,400 | |
Professional Library | $ 7,200 | $ 21,600 |
$ 1,20,518 | ||
3. Equipment | ||
Particulars | Amount | |
Opening WDV | 1,04,000.00 | |
Accumulated Depreciation - Equipment (16582+14400) | 30,982.00 | |
Closing WDV | 73,018.00 | |
4. Professional Library | ||
Particulars | Amount | |
Opening WDV | 31,088.00 | |
Accumulated Depreciation - Professional Library (9328+7200) | 16,528.00 | |
Closing WDV | 14,560.00 | |
5. Retained Earnings | ||
Particulars | Amount | |
Opening Balance | $ 76,000 | |
Less: Dividends | $ 41,452 | |
Add: Profit for the year | $ 40,912 | |
$ 75,460 |
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. 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 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. 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...
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. 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...
Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tultion directly to the school. WTI also offers training to groups in off-site locations. WTI Initially records prepaid expenses and uneared 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 $3,203 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, 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. 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...