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 | |
Prepare the necessary adjusting journal entries for
items a through h. Assume that adjusting entries
are made only at year-end.
Adjusting entry
No | General Journal | Debit | Credit |
a | Insurance expense | 3600 | |
Prepaid insurance | 3600 | ||
b | Teaching supplies expense (10362-3120) | 7242 | |
Teaching supplies | 7242 | ||
c | Depreciation expense | 14400 | |
Accumulated depreciation-equipment | 14400 | ||
d | Depreciation expense | 7200 | |
Accumulated depreciation-Professional library | 7200 | ||
e | Unearned revenue (13500/5*2) | 5400 | |
Training revenue | 5400 | ||
f | Account receivable | 10950 | |
Tuition revenue | 10950 | ||
g | Salaries expense (100*2*2) | 400 | |
Salaries payable | 400 | ||
h | Rent expense ( | 2073 | |
Prepaid rent | 2073 | ||
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 $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 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 An analysis of WTI's insurance policies shows that $3,864 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 $3,864 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 $3,996 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 $3,996 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. WTl 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 WT's insurance policies shows that $2,939 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 a. An analysis of WTI's Insurance policies shows that $3,071 of...