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.
meducation.com/flow/connect.html Accounts for Financial Sta... 0 Saved Help Save Required information [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 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 $2,939 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,547 are available at year-end. c. Annual depreciation on the equipment is $11,756. d. Annual depreciation on the professional library is $5,878. e. On September 1, WTI agreed to do five courses for a client for $2,300 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 $11,500 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, $8,700 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 December 31 Debit Credit DOO DO0 F4 F5 * 00 TERLUP History Bookmarks People Window Help VOX ) 29% O counts to x C On January 1, Falk Company S * + theducation.com/flow/connect.html Accounts for Financial Sta... A Saved Help Save & Exit Check my WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit $ 27, 245 Credit 10,478 15,719 2,097 31,436 $ 9,432 100,000 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 Common stock Retained earnings Dividends 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 16, 768 22,000 0 11,500 24,057 85,000 41,916 106,885 39,820 50,300 0 23,067 7,336 5,868 $ 315,462 $315,462 Saved 3: Adjustin Accounts for Financial Statements a h t h n || Required information WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 11. 21. 1 LT TTT po e 1 ences DOO DO0 F4 F5 * 00 TERLUP History Bookmarks People Window Help VOX ) 29% O counts to x C On January 1, Falk Company S * + theducation.com/flow/connect.html Accounts for Financial Sta... A Saved Help Save & Exit Check my WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit $ 27, 245 Credit 10,478 15,719 2,097 31,436 $ 9,432 100,000 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 Common stock Retained earnings Dividends 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 16, 768 22,000 0 11,500 24,057 85,000 41,916 106,885 39,820 50,300 0 23,067 7,336 5,868 $ 315,462 $315,462 Saved 3: Adjustin Accounts for Financial Statements a h t h n || Required information WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 11. 21. 1 LT TTT po e 1 ences
