In: Finance
Required information
[The following information applies to the questions
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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
WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 |
|||||
Debit | Credit | ||||
Cash | $ | 27,698 | |||
Accounts receivable | 0 | ||||
Teaching supplies | 10,652 | ||||
Prepaid insurance | 15,981 | ||||
Prepaid rent | 2,132 | ||||
Professional library | 31,958 | ||||
Accumulated depreciation—Professional library | $ | 9,589 | |||
Equipment | 74,555 | ||||
Accumulated depreciation—Equipment | 17,046 | ||||
Accounts payable | 37,568 | ||||
Salaries payable | 0 | ||||
Unearned training fees | 12,500 | ||||
Common stock | 12,000 | ||||
Retained earnings | 55,754 | ||||
Dividends | 42,613 | ||||
Tuition fees earned | 108,661 | ||||
Training fees earned | 40,482 | ||||
Depreciation expense—Professional library | 0 | ||||
Depreciation expense—Equipment | 0 | ||||
Salaries expense | 51,136 | ||||
Insurance expense | 0 | ||||
Rent expense | 23,452 | ||||
Teaching supplies expense | 0 | ||||
Advertising expense | 7,457 | ||||
Utilities expense | 5,966 | ||||
Totals | $ | 293,600 | $ | 293,600 | |
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.