Question

I have try to figure out how to do this but I do not know how?

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. 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 a. An analysis of WTI's insurance policies shows that $2,400 of coverage has expired b. An inventory count shows that teaching supplies costing $2,800 are available at year-end 2017. c. Annual depreciation on the equipment is $13,200 d. Annual depreciation on the professional library is $7,200 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 $2,500, 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 2018 f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,000 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 Decemben WELLSTECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 Debit Credit 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 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 $ 34,000 8,000 12,000 3,000 35,000 10,000 80,000 15,000 26, 000 12,500 10,000 80,000 50,000 123,900 40,000 50,000 33,000 6,000 6,400 317,400 $317,400 a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts b. Prepare an adjusted trial balance Req 2A Req 2B Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts Cash Equipment 80,000 Unadj. Bal 34,000 Unadj. Bal Adj. Bal 34,000 Adj. Bal 80,000 Accounts Receivable Accumulated Depreciation-Equipment Unadj. Bal Unadj. Bal 7,500 Adj. Bal 7,500 Adj. Bal Teaching Supplies Accounts Payable Unadj. Bal Unadj. Bal 5,200 Adj. Bal 5,200 Adj. Bal Prepaid Insurance Salaries Payable Unadj. Bal 12,000 Unadj. Bal 2,400 400 Prepaid Insurance Salaries Payable Unadj. Bal 12,000 Unadj. Bal 2,400 400 Adj. Bal 9,600 Adj. Bal 400 Prepaid Rent 3,000 Unearned Training Fees Unadj. Bal Unadj. Bal 12,500 5,000 Adj. Bal 3,000 Adj. Bal 7,500 Professional Library Common stock Unadj. Bal 35,000 Unadj. Bal 10,000 Adj. Bal 35,000 Adj. Bal 10,000 Accumulated Depreciation-Professional Library Retained earnings Unadj. Bal 10,000Unadj. Bal 80,000 7,200 Adj. Bal 17,200 Adj. Bal 80,000 Prepaid Insurance Salaries Payable Unadj. Bal 12,000 Unadj. Bal 2,400 400 Adj. Bal 9,600 Adj. Bal 400 Prepaid Rent 3,000 Unearned Training Fees Unadj. Bal Unadj. Bal 12,500 5,000 Adj. Bal 3,000 Adj. Bal 7,500 Professional Library Common stock Unadj. Bal 35,000 Unadj. Bal 10,000 Adj. Bal 35,000 Adj. Bal 10,000 Accumulated Depreciation-Professional Library Retained earnings Unadj. Bal 10,000Unadj. Bal 80,000 7,200 Adj. Bal 17,200 Adj. Bal 80,000 Salaries Expense 50,000 Utilities Expense Unadj. Bal. Unadj. Bal 6,400 Adj. Bal 50,000 Adj. Bal 6,400 Insurance Expense Unadj. Bal. Adj. Bal 0 WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31, 2017 Debit Credit 34,000 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 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 $34,000 $ 0 K Req 2A Req 2B

Answer 1

2-a.

Cash					Accounts Receivable					Teaching Supplies
Unadj. Bal.	34000				Unadj. Bal.	0				Unadj. Bal.	8000
					f.	7500						b.	5200
Adj. Bal.	34000				Adj. Bal.	7500				Adj. Bal.	2800
Prepaid Insurance					Prepaid Rent					Professional Library
Unadj. Bal.	12000				Unadj. Bal.	3000				Unadj. Bal.	35000
		a.	2400				h.	3000
Adj. Bal.	9600				Adj. Bal.	0				Adj. Bal.	35000
Accumulated depreciation-Prof. library					Equipment					Accumulated depreciation-equipment
Unadj. Bal.			10000		Unadj. Bal.	80000				Unadj. Bal.			15000
		d.	7200									c.	13200
Adj. Bal.			17200		Adj. Bal.	80000				Adj. Bal.			28200
Accounts Payable					Salaries Payable					Unearned Training Fees
Unadj. Bal.			26000		Unadj. Bal.			0		Unadj. Bal.			12500
							g.	400		e.	5000
Adj. Bal.			26000		Adj. Bal.			400		Adj. Bal.			7500
Common Stock					Retained Earnings					Dividends
Unadj. Bal.			10000		Unadj. Bal.			80000		Unadj. Bal.	50000
Adj. Bal.			10000		Adj. Bal.			80000		Adj. Bal.	50000
Tuition Fees Earned					Training Fees Earned					Depreciation expense-Prof. Library
Unadj. Bal.			123900		Unadj. Bal.			40000		Unadj. Bal.	0
		f.	7500				e.	5000		d.	7200
Adj. Bal.			131400		Adj. Bal.			45000		Adj. Bal.	7200
Depreciation expense-equipment					Salaries Expense					Insurance Expense
Unadj. Bal.	0				Unadj. Bal.	50000				Unadj. Bal.	0
c.	13200				g.	400				a.	2400
Adj. Bal.	13200				Adj. Bal.	50400				Adj. Bal.	2400
Rent Expense					Teaching Supplies Expense					Advertising Expense
Unadj. Bal.	33000				Unadj. Bal.	0				Unadj. Bal.	6000
h.	3000				b.	5200
Adj. Bal.	36000				Adj. Bal.	5200				Adj. Bal.	6000
Utilities Expense
Unadj. Bal.	6400
Adj. Bal.	6400

Working:

b. Teaching supplies expense = $8000 - $2800 = $5200

e. Training fees earned = $2500 x 2 = $5000

f. Tuition fees earned = $3000 x 2.5 = $7500

g. Salaries payable = $100 x 2 x 2 = $400

2-b.