ucents How to Logo Cassanoaquin Delta College BUS 1A Principint of Account 30003 Question 1 - Extra Cred-Chagler Extra Credit - Chapter 3 - Adjusting Entries Saved Help Save & E CH 1 1 Part 1 of 2 5 Doints Book Print References Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, 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 tultion 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 $2,674 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,318 are available at year-end. c. Annual depreciation on the equipment is $10,698. d. Annual depreciation on the professional library is $5,349 e. On September 1. WTI agreed to do five courses for a client for $2,700 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 $13,500 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, $6,403 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 WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance AR Prev 1 2 of 2 !!! Next > w D tv diately) for an executive with At December 31, $6,403 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 att day for each employee. h. The balance in the Prepaid Rent account represents rent for December of 2 WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit $ 27,698 Credit ok ht 10,652 15,981 2,132 31,958 aces $ 9,589 74,555 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 T. Wells, Capital T. Wells, Withdrawals 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 17,046 36,568 13,500 67,754 42,613 108,661 40,482 51,136 23,452 7,457 5,966 $ 293,600 $293,600 1 Problem 3-3A Part 1 Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 1 An analysis of WTI's insurance policies shows that $2,674 of coverage has expired. Note: Enter debits before credits. Debit Credit Transaction General Journal a of 2 Next >