[The following information applies to the questions displayed below.] Wells Technical Institute (WTI) 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 An analysis of WTI's insurance policies shows that $3,996 of coverage has expired. An inventory count shows that teaching supplies costing $3,464 are available at year-end. Annual depreciation on the equipment is $15,986. Annual depreciation on the professional library is $7,993. On September 1, WTI agreed to do five training 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 training courses on September 1, and WTI credited Unearned Revenue. 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, $13,903 of the tuition revenue has been earned by WTI. 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. The balance in the Prepaid Rent account represents rent for December. . Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below.] Wells Technical Institute (WTI) 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 An analysis of WTI's insurance policies shows that $3,996 of coverage has expired. An inventory count shows that teaching supplies costing $3,464 are available at year-end. Annual depreciation on the equipment is $15,986. Annual depreciation on the professional library is $7,993. On September 1, WTI agreed to do five training 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 training courses on September 1, and WTI credited Unearned Revenue. 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, $13,903 of the tuition revenue has been earned by WTI. 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. The balance in the Prepaid Rent account represents rent for December.

. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end

[The following information applies to the questions displayed below.]
Wells Technical Institute (WTI) 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 $3,996 of coverage has expired.
b. An inventory count shows that teaching supplies costing $3,464 are available at year-end.
c. Annual depreciation on the equipment is $15,986.
d. Annual depreciation on the professional library is $7,993.
e. On September 1, WTI agreed to do five training 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 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, $13,903 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.
Transcribed Image Text:[The following information applies to the questions displayed below.] Wells Technical Institute (WTI) 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 $3,996 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,464 are available at year-end. c. Annual depreciation on the equipment is $15,986. d. Annual depreciation on the professional library is $7,993. e. On September 1, WTI agreed to do five training 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 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, $13,903 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
Common stock
Retained earnings
Dividends
Tuition revenue
Training revenue
December 31
Depreciation expense-Pr fessional library
Depreciation expense-Equipment
Salaries expense
Insurance expense
Rent expense
Teaching supplies expense
Advertising expense
Utilities expense
Totals
Debit
$ 26,642
0
10,245
15,371
2,050
30,739
102,000
40,988
0
49,186
0
22,550
0
7,173
5,738
$ 312,682
Credit
$ 9,223
16,396
26,000
0
11,500
27,110
79,000
104,516
38,937
$ 312,682
Transcribed Image Text: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 Common stock Retained earnings Dividends Tuition revenue Training revenue December 31 Depreciation expense-Pr fessional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals Debit $ 26,642 0 10,245 15,371 2,050 30,739 102,000 40,988 0 49,186 0 22,550 0 7,173 5,738 $ 312,682 Credit $ 9,223 16,396 26,000 0 11,500 27,110 79,000 104,516 38,937 $ 312,682
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