View History Bookmarks Tools Window Help 84 El ConnectClass

View History Bookmarks Tools Window Help 84 El Connect-Class: Principles c X Getting Ready To Ask Out L. + a https://newconnect.mheducation.com/flow/connect.html ed Latest Headlines G b dot evans -Goog... G New Tab YouTube G university of richm... G Google rk Assignment 2 80% Required information The following information applies to the questions displayed below) Wells Technical Institute (WTO, 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 unearned 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 $2.400 of coverage has expired b. An inventory count shows that teaching supplies costing $2,800 are available at year-end 2017, c. Annual depreciation on the equipment is $13,200 Annual depreciation on the professional library is $7200 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. The fee for the sixth month will be recorded when it is collected in 2018. On October 15, WTI agreed to teach a four class (beginning immediately) for an individual for $3.000 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been re accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual) ceived. (WTI\'s 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 TECHN?CAL INSTITUTE Unadjusted Trial Balance Decenber 31, 2017 34,000 34,000 creit Accounts receivable Teachlng supplies Prepaid Lnsurance Prepaid rent 8, 000 12,000 ,000

Solution

Cash

	Transaction	General Journal	Debit	Credit
	a.	Insurance expense	2,400
		Prepaid insurance		2,400
	b.	Teaching supplies expense (8000-2800)	5,200
		Teaching supplies		5,200
	c.	Depreciation expense—Equipment	13,200
		Accumulated depreciation—Equipment		13,200
	d.	Depreciation expense—Professional library	7,200
		Accumulated depreciation—Professional library		7,200
	e.	Unearned training fees (2500 x 2)	5,000
		Training fees earned		5,000
	f.	Accounts receivable (3000 x 2.5)	7,500
		Tuition fees earned		7,500
	g.	Salaries expense (100 x 2 x 2)	400
		Salaries payable		400
	h.	Rent expense	3,000
		Prepaid rent		3,000
	Cash		Equipment
	Unadj. Bal.	34,000			Unadj. Bal.	80,000
	Adj. Bal.	34,000			Adj. Bal.	80,000
	Accounts Receivable	Accumulated Depreciation—Equipment
	Unadj. Bal.	0			Unadj. Bal.			15,000
	f	7,500					c	13,200
	Adj. Bal.	7,500			Adj. Bal.			28,200
	Teaching Supplies	Accounts Payable
	Unadj. Bal.	8,000		0	Unadj. Bal.			26,000
		0	b	5,200				0
		0		0				0
	Adj. Bal.	2,800			Adj. Bal.			26,000
	Prepaid Insurance	Salaries Payable
	Unadj. Bal.	12,000			Unadj. Bal.			0
			a	2,400			g	400
	Adj. Bal.	9,600			Adj. Bal.			400
	Prepaid Rent	Unearned Training Fees
	Unadj. Bal.	3,000			Unadj. Bal.			12,500
			h	3,000	e	5,000
	Adj. Bal.	0			Adj. Bal.			7,500
	Professional Library	T. Wells, Capital
	Unadj. Bal.	35,000			Unadj. Bal.			90,000
	Adj. Bal.	35,000			Adj. Bal.			90,000
	Accumulated Depreciation—Professional Library	T.Wellsm Withdrawals
	Unadj. Bal.			10,000	Unadj. Bal.	50,000
			d	7,200
	Adj. Bal.			17,200	Adj. Bal.	50,000
	Tuition Fees Earned	Insurance Expense
	Unadj. Bal.			123,900	Unadj. Bal.	0
			f	7,500	a	2,400
	Adj. Bal.			131,400	Adj. Bal.	2,400
	Training Fees Earned	Rent Expense
	Unadj. Bal.	0		40,000	Unadj. Bal.	33,000
		0	e	5,000	h	3,000
	Adj. Bal.			45,000	Adj. Bal.	36,000
	Depreciation Expense—Professional Library	Teaching Supplies Expense
	Unadj. Bal.	0			Unadj. Bal.	0
	d	7,200			b	5,200
	Adj. Bal.	7,200			Adj. Bal.	5,200
	Depreciation Expense—Equipment	Advertising Expense
	Unadj. Bal.	0			Unadj. Bal.	6,000
	c	13,200
	Adj. Bal.	13,200			Adj. Bal.	6,000
	Salaries Expense	Utilities Expense
	Unadj. Bal.	50,000			Unadj. Bal.	6,400
	g	400
	Adj. Bal.	50,400			Adj. Bal.	6,400
		WELLS TECHNICAL INSTITUTE
		Adjusted Trial Balance
		December 31, 2017
			Debit	Credit
		Cash	$34,000
		Accounts receivable	7,500
		Teaching supplies	2,800
		Prepaid insurance	9,600
		Prepaid rent	0
		Professional library	35,000
		Accumulated depreciation—Professional library		17,200
		Equipment	80,000
		Accumulated depreciation—Equipment		28,200
		Accounts payable		26,000
		Salaries payable		400
		Unearned training fees		7,500
		T. Wells, Capital		90,000
		T. Wells, Withdrawal	50,000
		Tuition fees earned		131,400
		Training fees earned		45,000
		Depreciation expense—Professional library	7,200
		Depreciation expense—Equipment	13,200
		Salaries expense	50,400
		Insurance expense	2,400
		Rent expense	36,000
		Teaching supplies expense	5,200
		Advertising expense	6,000
		Utilities expense	6,400
		Totals	345,700	345,700