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Required information [The following information applies to the questions displayed below.] Wells Technical Institute (WTI) provides training to individuals who pay tuition directly to the
Required information [The following information applies to the questions displayed below.] Wells Technical Institute (WTI) 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 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 training 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 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, $9,903 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 for each employee. h. The balance in the Prepaid Rent account represents rent for December. Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals Debit $ 27,849 Credit 0 10,710 16,068 2,143 32,133 $ 9,641 103,000 17,139 23,000 0 13,000 27,496 83,000 42,845 109,254 40,702 0 0 51,415 0 23,573 0 7,498 5,998 $ 323,232 $ 323,232 Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. Unadjusted Balance Cash 27,849 Unadjusted Balance Equipment 103,000 Adjusted Balance 27,849 Adjusted Balance 103,000 Accounts Receivable Accumulated Depreciation-Equipment Unadjusted Balance Unadjusted Balance 17,139 Adjusted Balance Adjusted Balance 17,139 Teaching Supplies Accounts Payable Unadjusted Balance 0 Unadjusted Balance 23,000 Adjusted Balance Adjusted Balance 23,000 Prepaid Insurance Salaries Payable Unadjusted Balance 16,068 Unadjusted Balance Adjusted Balance 16,068 Adjusted Balance Prepaid Rent Unearned Revenue Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance Professional Library Common Stock Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance Accumulated Depreciation-Professional Library Retained Earnings Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance 0 Tuition Revenue Dividends Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance 0 Training Revenue Rent Expense Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance Depreciation Expense-Professional Library Teaching Supplies Expense Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance Depreciation Expense-Equipment Advertising Expense Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance Salaries Expense Utilities Expense Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance 0 Insurance Expense Unadjusted Balance Adjusted Balance Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31 Debit Credit Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals $ 0 $ 0 No Transaction General Journal Debit Credit 1 a. Insurance expense 3,335 Prepaid insurance 2 b. Teaching supplies expense Teaching supplies Depreciation expense-Equipment 3,335 7,819 7,819 3 C. Accumulated depreciation-Equipment 13,342 13,342 4 d. Depreciation expense-Professional library 6,671 Accumulated depreciation-Professional library 6,671 5 e. Unearned revenue Training revenue 5,200 5,200 6 f. Accounts receivable Tuition revenue 7 g. Salaries expense Salaries payable 8 h. Rent expense Prepaid rent 400 400 2,143 2,143
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