Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my work 3 Required information Part 2 of 3 The following information applies to the questions displayed below.) 2.22 points Wells Technical Institute (WTI),

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Check my work 3 Required information Part 2 of 3 The following information applies to the questions displayed below.) 2.22 points 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 $3,732 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,235 are available at year-end 2017 c. Annual depreciation on the equipment is $14,929. d. Annual depreciation on the professional library is $7.464. 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 $2,700, 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 $4,640 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 December WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 Credit Debit $ 27,547 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation Professional library Equipment 10,594 15,894 2, 120 31,784 $ 9,537 74,152 WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 Credit $ 27,547 10,594 15,894 2,120 31,784 $ 9,537 74,152 16, 36,294 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 13,500 12,000 55,385 42,381 108,069 40, 261 50,858 Oo 23, 320 7,417 5,933 $ 292,000 $292,000 2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. 2-b. Prepare an adjusted trial balance. Reg 2A Req 2B Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. Cash 27,547 Equipment 74,152 Unadj. Bal. Unadj. Bal. Adj. Bal. 27.547 Adj. Bal. 74,152 Accounts Receivable Accumulated Depreciation Equipment Unadj. Bal. 16,954 Unadj. Bal. 14,929 31,883 Adj. Bal. Adj. Bal. Accounts Payable Teaching Supplies 10,594 Unadj. Bal. Unadj. Bal. [ 36,294 7,359 Adj. Bal. 3,235 Adj. Bal. 36,294 Prepaid Insurance Salaries Payable Unadj. Bal. [ 15,894 Unadj. Bal. 3,732 Adj. Bal. 12.162 Adj. Bal. 400 Unearned Training Fees Prepaid Rent 2,120 Unadj. Bal. Unadj. Bal. 13,500 2,120 Adj. Bal. Adj. Bal. 13,500 Common stock Professional Library 31,784 Unadj. Bal. Unadj. Bal. 2,000 Adj. Bal. 31,784 Adj. Bal. 12,000 Retained earnings Accumulated Depreciation Professional Library Unadj. Bal. 9,537 Unadj. Bal. [ 55,385 7,464 17,001 Adj. Bal. Adj. Bal. 55,385 Tuition Fees Earned Dividends Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. Training Fees Earned Rent Expense Unadj. Bal. Unadj. Bal. of 3 Teaching Supplies Expense Depreciation Expense-Professional Library Unadj. Bal. Unadj. Bal. I Adj. Bal. Adj. Bal. Advertising Expense Depreciation Expense-Equipment Unadj. Bal. Unadj. Bal. he : Adj. Bal. Adj. Bal. Salaries Expense Utilities Expense Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. Insurance Expense Unadj. Bal. Adj. Bal. 0 Ajusteu inal Dalance 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 0 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wiley CIA Essentials Of Internal Auditing Part 1 Exam Review 2023

Authors: S. Rao Vallabhaneni

1st Edition

1119987148, 978-1119987147

More Books

Students also viewed these Accounting questions

Question

Explain how cultural differences affect business communication.

Answered: 1 week ago

Question

List and explain the goals of business communication.

Answered: 1 week ago