Question

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 unearned revenues in balance sheet accounts. Descriptions of items athrough h that require adjusting entries on December 31, 2017, follow.
  
Additional Information Items

1. An analysis of WTI's insurance policies shows that $3,203 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,776 are available at year-end 2017.
3. Annual depreciation on the equipment is $12,814.
4. Annual depreciation on the professional library is $6,407.
5. 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 $2,700, 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.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,600 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.)
7. 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.
8. The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017
	Debit			Credit
Cash	$	27,245
Accounts receivable		0
Teaching supplies		10,478
Prepaid insurance		15,719
Prepaid rent		2,097
Professional library		31,436
Accumulated depreciation—Professional library				$	9,432
Equipment		73,338
Accumulated depreciation—Equipment					16,768
Accounts payable					35,749
Salaries payable					0
Unearned training fees					13,500
T. Wells, Capital					66,646
T. Wells, Withdrawals		41,916
Tuition fees earned					106,885
Training fees earned					39,820
Depreciation expense—Professional library		0
Depreciation expense—Equipment		0
Salaries expense		50,300
Insurance expense		0
Rent expense		23,067
Teaching supplies expense		0
Advertising expense		7,336
Utilities expense		5,868
Totals	$	288,800		$	288,800

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

2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts.
2-b. Prepare an adjusted trial balance.

3-a. Prepare Wells Technical Institute's income statement for the year 2017.
3-b. Prepare Wells Technical Institute's statement of owner's equity for the year 2017.
3-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2017.

Answer 1

1. Adjusting journal entries

In the books of Wells Technical Institute

Date	Account titles	Debit (in $)	Credit (in $)
Dec 31, 2017
	Insurance expense	3,203
	Prepaid insurance		3,203
	(To record insurance expense)
	Teaching supplies expense	7,702
	Teaching supplies		7,702
	(To record usage of teaching supplies) ($10,478 - $2,776)
	Depreciation expense - Equipment	12,814
	Accumulated depreciation - Equipment		12,814
	(To record depreciation on equipment)
	Depreciation expense - Professional library	6,407
	Accumulated depreciation - Professional library		6,407
	(To record depreciation on Professional library)
	Unearned training fees	5,400
	Training fees earned		5,400
	(To record training fees earned for 2 months at $2700 per month)
	Accounts receivable	9,000
	Tuition fees earned		9,000
	(To record tuition fees earned at $3,600 per month for 2.5 months)
	Salaries expense	400
	Salaries payable		400
	(To record salary payable to two employees)
	Rent expense	2,097
	Prepaid rent		2,097
	(To record rent expense)

2-a - Post into T- Accounts

2-b: Adjusted Trial Balance

WELLS TECHNICAL INSTITUTE
Adjusted Trial Balance
December 31, 2017
	Debit (in $)	Credit (in $)
Cash	27,245
Accounts payable		35,749
T. Wells, Capital		66,646
Accounts receivable	9,000
Tuition fees earned		115,885
Training fees earned		45,220
Unearned Training fees		8,100
Teaching Supplies	2,776
Salaries expense	50,700
Prepaid Insurance	12,516
Professional Library	31,436
Prepaid rent	-
Equipment	73,338
Salaries payable		400
Accumulated depreciation - Equipment		29,582
T. Wells, Withdrawals	41,916
Accumulated depreciation - Professional library		15,839
Insurance expense	3,203
Depreciation expense - Professional library	6,407
Rent expense	25,164
Depreciation expense - Equipment	12,814
Teaching supplies expense	7,702
Advertising expense	7,336
Utilities expense	5,868
Total	317,421	317,421

3-a: Income Statement:

WELLS TECHNICAL INSTITUTE
Income Statement
for the year ended 31st December, 2017
	figures in $	figures in $
Income:
Tuition fees earned	115,885
Training fees earned	45,220
		161,105
Expenses:
Insurance expense	3,203
Salaries expense	50,700
Rent expense	25,164
Teaching supplies expense	7,702
Depreciation expense	19,221
Utilities expense	5,868
Advertising expense	7,336
		119,194
Net Income		41,911

3-b: Statement of owner's equity

WELLS TECHNICAL INSTITUTE ekkarill92 Next > < Previous Related Solutions Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay... 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, 2016, 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, 2016, follow. Additional Information Items An analysis of WTI's insurance policies shows that $2,400 of... Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay... 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 unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow.   WELLS TECHNICAL INSTITUTE Additional Information Items An analysis of WTI's insurance policies shows... Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay... 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, 2015, 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, 2015, follow Required -Highlights may require your input if $0 place a $0 if no... Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay... 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 unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow.    Additional Information Items An analysis of WTI's insurance policies shows that $2,674... Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay... 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. 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 $2,400 of coverage... Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay... 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, 2016, 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, 2016, follow. Additional Information Items An analysis of WTI's insurance policies shows that $2,807 of... Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay... 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 unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow Prepare the necessary adjusting journal entries for items a through h. Assume that... Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay... 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 unearned revenues in balance sheet accounts. Descriptions of items athrough h that require adjusting entries on December 31, 2017, follow.    Additional Information Items An analysis of WTI's insurance policies shows that $3,335 of... Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay... 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, 2018, 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. An analysis of WTI’s insurance policies shows that... Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay... 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 unearned revenues in balance sheet accounts. Descriptions of items athrough h that require adjusting entries on December 31, 2017, follow.    Additional Information Items An analysis of WTI's insurance policies shows that $4,129 of... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions Young and Company claims that its pressurized diving bell will, on average, maintain its integrity to... 1) Alternative compiled code sequence using instructions in classes A, B, C. What is the average... An asset is purchased on January 1 for $48,700. It is expected to have a useful... Do we have any online or offline tool to convert c and cpp programs into MIPS... -what is the pH of HCl 0,1M and NaCl 0,1M mixed together solution? -What is the... function X=extractDWT(x_train,startS,endS,wStep,wRange) % x_train = input signal % startS   = from second % endS     = end... Do you agree that Social Loafing is similar to Theory X. Give an example to support... ADVERTISEMENT About @ 2020 WizEdu