Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 .. An analysis of WTI's Insurance policies shows that $2,400 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,800 are available at year-end. c. Annual depreciation on the equipment is $13,200. d. Annual depreciation on the professional library is $7.200. e. On September 1. WTI agreed to do five 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 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, $7,500 of the tuition has been earned by WTI g. We two employees are paid weekly As of the end of the year two days salaries have occrued at the rate of S100 per h. The balance in the Prepaid Rent account represents rent for December WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit $ 35,000 Credit 8,200 12,000 3,000 35,000 $10,000 Cash Accounts receivable Teaching supplies Prepoto insurance Prepold rent Professional library Accumulated depreciation Professional Library Loul pent Accumulated depreciation-couinent Accounts payable Solaris able Unearned training fets Tilt Capital Well travels Tuition des doned se, 200 15,000 26.000 0 12,500 90,000 50,000 123.900 Un clube is, wil agree to teach a jour-tron Ciess egy mediately for an execuve Wur payment uue au the end of the class. At December 31, $7,500 of the tuition has been earned by WTI 9. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of S100 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 $ 34,000 8 8,000 12,000 3,000 35,000 $ 10,000 80,000 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation Professional library Equipment Accusulated depreciation Equipment Accounts payable Salaries payable Unearned training fees 1. We115) Capital Tu Wells, withdrawals Tuition fees earned Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Solaries expense Insurance expense Rent expense Teaching supplies expense Advertising exoense Utilities expense Totols 15,000 26,000 3 12,500 90,000 58,000 123,900 40,000 @ a 50,000 @ 33,000 6,830 6.400 5317,400 5317,400 Required information Req 2A Reg 28 Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. Cash Equipment Unadj Bal Unadj. Bal Adi Bal Adj. Bal Accounts Receivable Accumulated Depreciation Equipment Unad Bal Unadi Bal Adi Bat Adi Bal Teaching Supplies Accounts Payable Unad Bal Unadi Bal Ad Bal Ad. Bal Prepaid Insurance Salaries Payable Unac B Unad Bai Art F AMIRA

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

The Evaluation Of An Internal Audit Department The Case Of SOTELMA

Authors: Oumar Bah

1st Edition

6204486039, 978-6204486031

More Books

Students also viewed these Accounting questions