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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 h that require adjusting entries on December 31. Additional Information Items a. An analysis of WTI's insurance policies shows that $3,996 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,464 are available at year-end. c. Annual depreciation on the equipment is $15,986. d. Annual depreciation on the professional library is $7,993. e. On September 1, WTI agreed to do five training courses for a client for $3,000 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 $15,000 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, $12,153 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. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Credit Debit $ 26,038 Cash Accounts receivable 0 10,013 Teaching supplies Prepaid insurance 15,023 Prepaid rent 2,004 Professional library. 30,043 Accumulated depreciation-Professional library $9,014 Equipment 95,000 Accumulated depreciation-Equipment 16,025 Accounts payable 23,000 Salaries payable 0 Unearned revenue 15,000 Common stock 21,671 Retained earnings 76,000 Dividends 40, 059 Tuition revenue 102,148 38,055 Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense 48,071 0 Insurance expense Rent expense Teaching supplies expense 22, 044 0 7,010 5,608 Advertising expense Utilities expense Totals $ 300,913 $ 300,913 2-a. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. 2-b. Prepare an adjusted trial balance. 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 h that require adjusting entries on December 31. Additional Information Items a. An analysis of WTI's insurance policies shows that $3,996 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,464 are available at year-end. c. Annual depreciation on the equipment is $15,986. d. Annual depreciation on the professional library is $7,993. e. On September 1, WTI agreed to do five training courses for a client for $3,000 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 $15,000 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, $12,153 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. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Credit Debit $ 26,038 Cash Accounts receivable 0 10,013 Teaching supplies Prepaid insurance 15,023 Prepaid rent 2,004 Professional library. 30,043 Accumulated depreciation-Professional library $9,014 Equipment 95,000 Accumulated depreciation-Equipment 16,025 Accounts payable 23,000 Salaries payable 0 Unearned revenue 15,000 Common stock 21,671 Retained earnings 76,000 Dividends 40, 059 Tuition revenue 102,148 38,055 Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense 48,071 0 Insurance expense Rent expense Teaching supplies expense 22, 044 0 7,010 5,608 Advertising expense Utilities expense Totals $ 300,913 $ 300,913 2-a. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. 2-b. Prepare an adjusted trial balance
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