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 September 1, WTI agreed to do five training 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 training courses on September 1, and WTI credited Unearned Revenue. 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 revenue 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. Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library. Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue T. Wells, Capital T. Wells, Withdrawals Tuition revenue Training revenue WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense < Prev Debit $ 34,000 0 8,000 12,000 3,000 35,000 80,000 50,000 0 0 50,000 0 33,000 0 6,000 5 of 5 Credit $ 10,000 15,000 26,000 0 12,500 90,000 123,900 40,000 H HH Next >
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 September 1, WTI agreed to do five training 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 training courses on September 1, and WTI credited Unearned Revenue. 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 revenue 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. Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library. Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue T. Wells, Capital T. Wells, Withdrawals Tuition revenue Training revenue WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense < Prev Debit $ 34,000 0 8,000 12,000 3,000 35,000 80,000 50,000 0 0 50,000 0 33,000 0 6,000 5 of 5 Credit $ 10,000 15,000 26,000 0 12,500 90,000 123,900 40,000 H HH Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text: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 September 1, WTI agreed to do five training 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 training courses on September 1, and WTI credited Unearned Revenue.
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 revenue 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.
Cash
Accounts receivable
Teaching supplies
Prepaid insurance
Prepaid rent
Professional library.
Accumulated depreciation-Professional library
Equipment
Accumulated depreciation-Equipment
Accounts payable
Salaries payable
Unearned revenue
T. Wells, Capital
T. Wells, Withdrawals
Tuition revenue
Training revenue
WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31.
Depreciation expense-Professional library
Depreciation expense-Equipment
Salaries expense
Insurance expense
Rent expense
Teaching supplies expense
Advertising expense
< Prev
Debit
$ 34,000
0
8,000
12,000
3,000
35,000
80,000
50,000
0
0
50,000
0
33,000
0
6,000
S
5
of 5
Credit
$ 10,000
15,000
26,000
0
12,500
90,000
123,900
40,000
Next >
Transcribed Image Text:Teaching supplies expense
Advertising expense
Utilities expense
Totals
3-a. Prepare Wells Technical Institute's income statement for the year.
3-b. Prepare Wells Technical Institute's statement of owner's equity for the year. The T. Wells, Capital account balance was $90,000 on
December 31 of the prior year, and there were no owner investments in the current year.
3-c. Prepare Wells Technical Institute's balance sheet as of December 31.
Complete this question by entering your answers in the tabs below.
Req 3A
Req 3B
Req 3C
Cash
Accounts receivable
Teaching supplies
Prepaid insurance
Prepaid rent
Prepare Wells Technical Institute's balance sheet as of December 31.
Note: Include all balance sheet accounts, even those with zero balances.
WELLS TECHNICAL INSTITUTE
Balance Sheet
December 31
0
6,000
6,400
$ 317,400
Professional library
Accumulated depreciation-Professional library
Equipment
$ 350,000
< Prev
350,000
S
ទ
5
$ 317,400
of 5
#
Next >
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