Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, P5, P6 [The following information applies to

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, P5, P6 [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. 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 h that require adjusting entries on December 31, Additional Information Items a. An analysis of WTI's insurance policies shows that $3,335 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,891 are available at year-end. c. Annual depreciation on the equipment is $13,342. d. Annual depreciation on the professional library is $6,671. e. On September 1, WTI agreed to do five courses for a client for $2,400 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 $12,000 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees. 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, $10,403 of the tuition 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 for each employee. h. The balance in the Prepaid Rent account represents rent for December. Credit Debit $ 26,944 10,362 15,545 2,073 31.088 $ 9,328 99,000 16,582 22,000 WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 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 12.000 31,077 76,000 41,452 105,701 39,379 0 0 49,743 0 22,803 0 7.254 5,803 $ 312,067 $312.067 Saved Problem 3-3A Part 2 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. Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. Cash Equipment Unadi. Bal. Unadi. Bal Ad, Bal Adj. Bal Accounts Receivable Accumulated Depreciation Equipment Unadj. Bal Unadi. Bal Adj. Bal 0 Adj. Bal. Teaching Supplies Accounts Payable Unadj. Bal Unadj. Bal. Adj. Bal Adj. Bal Prepaid Insurance Salaries Payable Unadi. Bal Unadj. Bal |Adj. Bal. O Adj. Bal 0 Prepaid Rent Uneamed Training Fees Unad Bal Unadj. Bal A Bal Ad Bal Chapter 3 Saved Required information Professional Library Common stock Unadj. Bal. Unadi. Bal Adj. Bal 0 Adj. Bal 0 Retained earning Accumulated Depreciation-Professional Library Unadj. Bal Unad. Bal Ad. Bal 0 Adi Bali 0 Tuition Fees Eamed Dividends Unad, Bal Unadj. Bal Des Adj. Bal. 0 Adj. Bal 0 Training Fees Earned Rent Expense Unadi. Bal Unadj. Bal Adj. Bal 0 Adj, Bal 0 Depreciation Expense-Professional Library Teaching Supplies Expense Unadj. Bal Unadi. Bal Adj. Bal O Adj. Bal Depreciation Expense-Equipment Advertising Expense Unad Bal Unadi. Bal Adj. Bal 0 AB Salaries Expense Unad. Bal Unadj. Bal Saved Problem 3-3A Part 2 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. Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. Cash Equipment Unadi. Bal. Unadi. Bal Ad, Bal Adj. Bal Accounts Receivable Accumulated Depreciation Equipment Unadj. Bal Unadi. Bal Adj. Bal 0 Adj. Bal. Teaching Supplies Accounts Payable Unadj. Bal Unadj. Bal. Adj. Bal Adj. Bal Prepaid Insurance Salaries Payable Unadi. Bal Unadj. Bal |Adj. Bal. O Adj. Bal 0 Prepaid Rent Uneamed Training Fees Unad Bal Unadj. Bal A Bal Ad Bal Chapter 3 Saved Required information Professional Library Common stock Unadj. Bal. Unadi. Bal Adj. Bal 0 Adj. Bal 0 Retained earning Accumulated Depreciation-Professional Library Unadj. Bal Unad. Bal Ad. Bal 0 Adi Bali 0 Tuition Fees Eamed Dividends Unad, Bal Unadj. Bal Des Adj. Bal. 0 Adj. Bal 0 Training Fees Earned Rent Expense Unadi. Bal Unadj. Bal Adj. Bal 0 Adj, Bal 0 Depreciation Expense-Professional Library Teaching Supplies Expense Unadj. Bal Unadi. Bal Adj. Bal O Adj. Bal Depreciation Expense-Equipment Advertising Expense Unad Bal Unadi. Bal Adj. Bal 0 AB Salaries Expense Unad. Bal Unadj. Bal

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

Lead Auditor ISO 22000 2018 Food Safety Management Systems FSMS Course

Authors: Marius Hauta

1st Edition

B0BTSCBJ82, 979-8376159750

More Books

Students also viewed these Accounting questions