Prepare adjusting entry, adjusted trial balance, and financial statements using the information of a-h and the unadjusted trial balance
Safari File Edit View History Bookmarks Window Help 91% . Tue 8:26 PM Nicholas Esprit Q = ... player-ui.mheducation.com L. A myFranklin Connect - Class: ACCT 215 Financial Accounting Ed 10 Master M MHE Reader + P4 P5 Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements Ip1 9 p2 9 P3 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 follows, along with descriptions of items a through h that require adjusting entries on December 31. Items Additional Information 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. Shot c. Annual depreciation on the equipment is $13,200. .29 PM d. Annual depreciation on the professional library is $7,200. e. On September 1, WTI agreed to do five training courses for a client for $2,500 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 $12,500 cash in advance for all five training courses on September 1, and WTI credited Unearned Revenue. onal ence 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, $7,500 of the tuition revenue 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 Shot tv for each employee. h. The balance in the Prepaid Rent account represents rent for December. 2.42 PM A WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance Shot December 31 9.39 PM W Debit Credit Cash $ 34,000 Accounts receivable 0 ft_Office_ Teaching supplies 8,000 .taller.pk Prepaid insurance 12,000 Prepaid rent 3,000 Professional library 35,000 player-ui.mheducation.com myFranklin ar Connect - Class: ACCT 215 Financial Accounting Ed 10 Master M MHE Reader ATA Unadjusted Trial Balance December 31 Debit Credit Cash $ 34,000 Accounts receivable 0 Teaching supplies 8,000 Prepaid insurance 12,000 Prepaid rent 3,000 Professional library 35,000 Accumulated depreciation-Professional library $ 10,000 Equipment 80,000 Accumulated depreciation-Equipment 15,000 Accounts payable 26,000 Salaries payable 0 Unearned revenue 12,500 Common stock 10,000 Retained earnings 80,000 Dividends 50,000 Tuition revenue 123,900 Training revenue 40,000 Depreciation expense-Professional library 0 Depreciation expense-Equipment 0 Salaries expense 50,000 Insurance expense 0 Rent expense 33,000 Teaching supplies expense 0 Advertising expense 6,000 Utilities expense 6,400 Totals $317,400 $317,400
