Question

Required information [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. 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 $3,203 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,776 are available at year-end. c. Annual depreciation on the equipment is $12,814. d. Annual depreciation on the professional library is $6,407. e. On September 1. WTI agreed to do five courses for a client for $2,300 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $11,500 cash in advance for all five courses on September 1, and WTI credited Unearned 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, $10,000 of the tuition has been earned by WTI. 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.

Answer 1

Bimal Adjusting Entries Dato: Paga No a. Insurance Expense 3203 3203 Prepaid Inserence Supplies Expense supplied Note: (# - Supplies in trial balance - 2776) Depreciation Expanse 12814 Accumulated depreciebia 12814 6407 Depressiution Espenne Accummulated deps on Land 6407 e) U poarned Revenue 4600 4600 Service Revenue 10ooo lovuto Accounts Receivable Service Revenue Sahrries Expense 400 Salaries Payable per Pent sixpense Prepaid pent Note :* Amount in prepaid rent account as on 31st December will be written abone the adgutment entry 6 al once