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Required information [The following information applies to the questions displayed below] Wells Technical Institute (WT), a school owned by Tristana Wells, provides training to individuals
Required information [The following information applies to the questions displayed below] Wells Technical Institute (WT), 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 31follows, 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 $3,600 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,120 are available at year-end. c. Annual depreciation on the equipment is $14,400. 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. 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, $11,450 of the tuition revenue has been earned by WTL g. WTT'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 emolovee Next Return to question Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end. Answer is not complete. Return to question No Transaction General Journal 1 Insurance expense Prepaid insurance 2 b 3 Teaching supplies expense Teaching supplies Depreciation expense-Equipment Accumulated depreciation-Equipment 4 d Depreciation experse-Professional library Accumulated depreciation-Professional Ibrary < Prev M 00 00 00 00 Debit 3,600 Credit 3,600 3.120 14,400 7,200 8 of 8 Next > 3,120 14,400 O 7.200 O 048920 Required information 5 e. Uneamed revenue 6 Training revenue Accounts receivable Tuition revenue 7 9 Salaries expense Salaries payable 8 h. Rent expense Prepaid rent 00 00 5,000 5,000 11,450 400 11,450 400 Return to
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