Question
I need some help with my Accounting Homework Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition
I need some help with my Accounting Homework
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 hthat require adjusting entries on December 31.
- Additional Information ItemsAn analysis of WTI's insurance policies shows that $3,468 of coverage has expired.
- An inventory count shows that teaching supplies costing $3,006 are available at year-end.
- Annual depreciation on the equipment is $13,871.
- Annual depreciation on the professional library is $6,936.
- On September 1, WTI agreed to do five courses for a client for $2,600 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 $13,000 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees.
- 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, $10,548 of the tuition has been earned by WTI.
- 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.
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1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.
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