Required information The following information applies to th

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. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and uneaned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow Additional Information Items a. An analysis of WTI\'s insurance policies shows that $3,335 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,891 are available at year-end 2017 c. Annual depreciation on the equipment is $13,342 d. Annual depreciation on the professional library is $6,671. 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 $2,400, and the client paid the first five months\' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018 f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,161 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI\'s accruals are applied to the nearest half-month, for example, October recognizes one-half month accrual.) g. WT\'s two employees are paid weekly. As of the end of the year, two days\' salaries have accrued at the rate of $100 per h. The balance in the Prepaid Rent account represents rent for December day for each employee.

Solution

Wells Technical Institute(WTI) Adjusted Journal Entries December 31st 2017 Particular Amount (DR) Amount(Cr) a) Insurance $            3,335.00    To Prepaid Insurance $                 3,335.00 (Being amount of prepaid insurance transfer to insurance a/c ) b) Teaching supplies Expenses=($10304-$2891) $            7,413.00      To Teaching supplies $                 7,413.00 (Being amount of Teaching supplies expenses) c ) Depreciation -Equipment $         13,342.00    To Accumulated Depreciation-Equipment $               13,342.00 (Being amount of Depreciation on Equipment) d) Depreciation-Professional Library $            6,671.00    To Accumulated Depreciation-Professional Library $                 6,671.00 (Being amount of Depreciation on Professional Library) e) Unearned Training Fees($2400*2) $            4,800.00    To Training Fees Earned $                 4,800.00 (Being amount of Unearned Training fees) h) Accounts receivable=($3000*3) $         12,483.00    To Tuition Fees earned $               12,483.00 (Being amount of tuition fees due from Oct to Dec ($4161*3)) g) Salaries=($100*2employees*2 days)=($100*2*2) $               400.00     To Salary Payable $                     400.00 (Being amount of salary due) h) Rent A/c $            2,062.00    To Prepaid Rent $                 2,062.00 (Being amount of Rent for Dec) Note: As per transaction (e ) Entry was passed at the time of receiving cash on 1st Nov for 5 months Cash   A/C    To Unearned Trainng fees After providing Two months training on Dec 31st unearned Training fees would be transferred to Training fees earned for the month of Nov and Dec Cash A/c Particular Amount(DR) Particular Amount (CR) To Balance B/d $         26,793.00 By Balance C/d $   26,793.00 Total $         26,793.00 Total $   26,793.00 Accounts Receivable A/c Particular Amount(DR) Particular Amount (CR) To Tuition fees Earned $         12,483.00 By Balance C/d $   12,483.00 Total $         12,483.00 Total $   12,483.00 Teaching Supplies A/c Particular Amount(DR) Particular Amount (CR) To Balance B/d $         10,304.00 By Teaching supplies Expenses $      7,413.00 By Balance c/d $      2,891.00 Total $         10,304.00 Total $   10,304.00 Prepaid Insurance A/c Particular Amount(DR) Particular Amount (CR) To Balance B/d $         15,458.00 By Insurance $      3,335.00 By Balance c/d $   12,123.00 Total $         15,458.00 Total $   15,458.00 Prepaid Rent A/c Particular Amount(DR) Particular Amount (CR) To Balance B/d $            2,062.00 By Rent A/c $      2,062.00 Total $            2,062.00 Total $      2,062.00 Professional Library Particular Amount(DR) Particular Amount (CR) To Balance B/d $         30,913.00 By Balalnce C/d $   30,913.00 Total $         30,913.00 Total $   30,913.00 Accumulated Depreciation-Professional Library Particular Amount(DR) Particular Amount (CR) To Balance C/d $         15,946.00 By Balalnce B/d $      9,275.00 By Depreciation-Professional Library $      6,671.00 Total $         15,946.00 Total $   15,946.00 Accumulated Depreciation-Equipment Particular Amount(DR) Particular Amount (CR) To Balance C/d $         29,831.00 By Balalnce B/d $   16,489.00 By Depreciation-Equipment $   13,342.00 Total $         29,831.00 Total $   29,831.00 Equipment Particular Amount(DR) Particular Amount (CR) To Balance B/d $         72,119.00 By Balalnce C/d $   72,119.00 Total $         72,119.00 Total $   72,119.00 Accounts Payable Particular Amount(DR) Particular Amount (CR) To Balance B/d $         36,431.00 By Balalnce B/d $   36,431.00 Total $         36,431.00 Total $   36,431.00 Salaries Payable Particular Amount(DR) Particular Amount (CR) To Balance B/d $               400.00 By Balalnce B/d $                   -   By Salaries $         400.00 Total $               400.00 Total $         400.00 Unearned Training Fees Particular Amount(DR) Particular Amount (CR) To Training Fees Earned $            4,800.00 By Balalnce B/d $   12,000.00 To Balance C/d $            7,200.00 Total $         12,000.00 Total $   12,000.00 Tuition Fees Earned Particular Amount(DR) Particular Amount (CR) To Balance C/d $       161,549.00 By Balalnce B/d $ 144,266.00 By Accounts Receivable $   12,483.00 Total By Unearned Training fees earned $      4,800.00 $       161,549.00 Total $ 161,549.00 Depreciation Expense-Professional Library Particular Amount(DR) Particular Amount (CR) To Balance B/d $                         -   By Balance C/d $      6,671.00 To Accumulated Depreciation $            6,671.00 Total $            6,671.00 Total $      6,671.00 Depreciation Expense-Equipment Particular Amount(DR) Particular Amount (CR) To Balance B/d $                         -   By Balance C/d $   13,342.00 To Accumulated Depreciation $         13,342.00 Total $         13,342.00 Total $   13,342.00 Salaries Expenses Particular Amount(DR) Particular Amount (CR) To Balance B/d $         49,464.00 By Balance C/d $   49,864.00 To Salary Payable $               400.00 Total $         49,864.00 Total $   49,864.00 Insurance Expenses Particular Amount(DR) Particular Amount (CR) To Balance B/d $                         -   By Balance C/d $      3,335.00 To Prepaid Insurance $            3,335.00 Total $            3,335.00 Total $      3,335.00 Rent Expenses Particular Amount(DR) Particular Amount (CR) To Balance B/d $         22,682.00 By Balance C/d $   24,744.00 To Prepaid Rent $            2,062.00 Total $         24,744.00 Total $   24,744.00 Teaching Supplies Expenses Particular Amount(DR) Particular Amount (CR) To Balance B/d By Balance C/d $      7,413.00 To Teaching Supplies $            7,413.00 Total $            7,413.00 Total $      7,413.00 Advertisement Expenses Particular Amount(DR) Particular Amount (CR) To Balance B/d $            7,214.00 By Balance C/d $      7,214.00 Total $            7,214.00 Total $      7,214.00 Utilities Expenses Particular Amount(DR) Particular Amount (CR) To Balance B/d $            5,771.00 By Balance C/d $      5,771.00 Total $            5,771.00 Total $      5,771.00 Trial Balance Adjusted Trial Balance Dec 31st 2017 Accounts Title Debit Credit Cash $         26,793.00 Accounts Receivable $         12,483.00 Teaching Supplies $            2,891.00 Prepaid Insurance $         12,123.00 Prepaid Rent - Professional Library $         30,913.00 Accumulated Depreciation-Professional library $               15,946.00 Accumulated Depreciation-Equipment $               29,831.00 Equipment $         72,119.00 Accounts Payable $               36,431.00 Salaries Payable $                     400.00 Unearned Training Fees $                 7,200.00 Common Stock 12000 Retained Earnings 53539 Dividend 41220 Tuition Fees earned $             161,549.00 Depreciation Expenses-Professional Library $            6,671.00 Depreciation Expenses-Equipment $         13,342.00 Salaries Expenses $         49,864.00 Insurance Expenses $            3,335.00 Rent Expenses $         24,744.00 Teaching Supplies Expenses $            7,413.00 Advertisement Expenses $            7,214.00 Utilities Expenses $            5,771.00 Total $       316,896.00 316896