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
image text in transcribed
image text in transcribed
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. Its unadjusted trial balance as of December 31,2022 , is found on the trial balance tab. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31 follow. a. 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 November 1, WTi agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,500, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. 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. 9. 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 Prepoid Rent account represents rent for December. Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection. General Ledger Account \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accumulated depreciation-Equipment } \\ \hline No. & Date & Debit & Credit & \multicolumn{1}{|c|}{ Balance } \\ \hline & Decomber 31 & & & 15,000 \\ \hline D 3 & December 31 & & 13,200 & 28,200 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accounts payable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 26.000 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|r|r|} \hline \multicolumn{7}{|c|}{ Salaries payable } \\ \hline No. & Date & Debit & Credit & \multicolumn{1}{|c|}{ Balance } \\ \hline & December 31 & & & 0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Common stock } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 10,000 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Retained earnings } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 80,000 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Dividends: } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 50,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|r|r|} \hline \multicolumn{7}{|c|}{ Tuition fees eamed } \\ \hline No. & Date & Debit & \multicolumn{1}{c|}{ Credit } & \multicolumn{1}{|c|}{ Balance } \\ \hline & December 31 & & & 123,900 \\ \hline 6 & December 31 & & 7,500 & 131,400 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|r|} \hline \multicolumn{5}{|c|}{ Depreciation expense - Professional library } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 0 \\ \hline E 4 & December 31 & 7,200 & & 7,200 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Depreciation expense-Equipment } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Salaries expense } \\ \hline No. & Date & Debit & Credit & Batance \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Common stock } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 10,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Dividends } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 50,000 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Insurance expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Unearned training fees } \\ \hline No. & Date & Debit & Credit & \multicolumn{1}{|c|}{ Balance } \\ \hline & December 31 & & & 12,500 \\ \hline \$ 5 & December 31 & 5,000 & & 7,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Retained earnings } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 80,000 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Tuition fees earned } \\ \hline No. & Date & Debit & \multicolumn{1}{c|}{ Credit } & \multicolumn{1}{c|}{ Balance } \\ \hline & December 31 & & & 123,900 \\ \hline 66 & December 31 & & 7,500 & 131,400 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|r|} \hline \multicolumn{5}{|c|}{ Depreciation expense - Professional library } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 0 \\ \hline D 4 & December 31 & 7.200 & & 7.200 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Salaries expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 50,000 \\ \hline 7 & December 31 & 400 & & 50,400 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|r|} \hline \multicolumn{5}{|c|}{ Training fees earned } \\ \hline No. & Date & Debit & \multicolumn{1}{c|}{ Credit } & \multicolumn{1}{|c|}{ Balance } \\ \hline & December 31 & & & 40,000 \\ \hline 5 & December 31 & & 5,000 & 45,000 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|r|} \hline \multicolumn{5}{|c|}{ Salaries expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 50,000 \\ \hline 7 & Docember 31 & 400 & & 50,400 \\ \hline \end{tabular} \begin{tabular}{|r|c|r|c|r|} \hline \multicolumn{5}{|c|}{ Insurance expense } \\ \hline No. & Date & \multicolumn{1}{|c|}{ Debit } & Credit & Balance \\ \hline & December 31 & & & 0 \\ \hline 1 & Docember 31 & 2,400 & & 2,400 \\ \hline \end{tabular} \begin{tabular}{|r|c|r|r|r|} \hline \multicolumn{5}{|c|}{ Rent expense } \\ \hline No. & Date & \multicolumn{1}{|c|}{ Debit } & \multicolumn{1}{|c|}{ Credit } & \multicolumn{1}{|c|}{ Balance } \\ \hline & December 31 & & & 33,000 \\ \hline 8 & December 31 & 3,000 & & 36,000 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|r|} \hline \multicolumn{5}{|c|}{ Teaching supplies expense } \\ \hline No. & Date & \multicolumn{1}{|c|}{ Debit } & Credit & Balance \\ \hline & Docember 31 & & & 0 \\ \hline 2 & December 31 & 5,200 & & 5,200 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|r|} \hline \multicolumn{5}{|c|}{ Advertising expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & Decomber 31 & & & 6,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Utilities expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & December 31 & & & 6,400 \\ \hline \end{tabular} Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Accounting What the Numbers Mean

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

9th Edition

978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062

Students also viewed these Accounting questions