Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help doing an adjusted trial balance for this scenario- I have the unadjusted TB and the adjusting entries listed after it. Wells Technical

I need help doing an adjusted trial balance for this scenario- I have the unadjusted TB and the adjusting entries listed after it.

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 $2,542 of coverage has expired.

An inventory count shows that teaching supplies costing $2,204 are available at year-end 2017.

Annual depreciation on the equipment is $10,170.

Annual depreciation on the professional library is $5,085.

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 $2,300, 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.

On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,699 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.)

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.

The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE

Unadjusted Trial Balance

December 31, 2017

Debit Credit

Cash $ 26,793

Accounts receivable 0

Teaching supplies 10,304

Prepaid insurance 15,458

Prepaid rent 2,062

Professional library 30,913

Accumulated depreciationProfessional library $ 9,275

Equipment 72,119

Accumulated depreciationEquipment 16,489

Accounts payable 36,931

Salaries payable 0

Unearned training fees 11,500

Common stock 14,000

Retained earnings 51,539

Dividends 41,220

Tuition fees earned 105,108

Training fees earned 39,158

Depreciation expenseProfessional library 0

Depreciation expenseEquipment 0

Salaries expense 49,464

Insurance expense 0

Rent expense 22,682

Teaching supplies expense 0

Advertising expense 7,214

Utilities expense 5,771

Totals $ 284,000 $ 284,000

Adjusting General Journal Entries

No Transaction General Journal Debit Credit

1 a. Insurance expense 2,542

Prepaid insurance 2,542

2 b. Teaching supplies expense 0

Teaching supplies 0

3 c. Depreciation expenseEquipment 10,170

Accumulated depreciationEquipment 10,170

4 d. Depreciation expenseProfessional library 5,085

Accumulated depreciationProfessional library 5,085

5 e. Unearned training fees 4,600

Training fees earned 4,600

6 f. Accounts receivable 6,748

Tuition fees earned 6,748

7 g. Salaries expense 400

Salaries payable 400

8 h. Rent expense 2,062

Prepaid rent 2,062

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

Management Accounting

Authors: Charles T Horngren, Gary L Sundem, William O Stratton, Howard D Teall, George Gekas

5th Canadian Edition

0131922688, 978-0131922686

More Books

Students also viewed these Accounting questions

Question

What languages support array slices with stepsizes?

Answered: 1 week ago

Question

What courses do your students assist with teaching this semester?

Answered: 1 week ago

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago