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 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 of coverage has expired. An inventory count shows that teaching supplies costing $2,318 are available at year-end 2017. Annual depreciation on the equipment is $10,698. Annual depreciation on the professional library is $5,349. 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. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,561 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.) 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.

WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017
	Debit			Credit
Cash	$	27,396
Accounts receivable		0
Teaching supplies		10,536
Prepaid insurance		15,806
Prepaid rent		2,108
Professional library		31,610
Accumulated depreciation—Professional library				$	9,484
Equipment		73,751
Accumulated depreciation—Equipment					16,861
Accounts payable					36,022
Salaries payable					0
Unearned training fees					13,500
Common stock					10,000
Retained earnings					57,016
Dividends		42,149
Tuition fees earned					107,477
Training fees earned					40,040
Depreciation expense—Professional library		0
Depreciation expense—Equipment		0
Salaries expense		50,579
Insurance expense		0
Rent expense		23,188
Teaching supplies expense		0
Advertising expense		7,376
Utilities expense		5,901
Totals	$	290,400		$	290,400

Help!

I just need to know how to get the (f)

f. account receivable

tuition fees earned

pls explain

Answer 1

Given in Q. :
From reading the Q., I conclude that Point (f) read as "On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,561 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)."

Answer :

• The amount of tuition fees is receivable at the end of class monthly.
  For example, October 15 class will end on November 15, and the amount receivable will be due on November 15.
• Based on accrual system, Income is accrued to the nearest half-month.
  For example, at the end of October, amount due up to October 31, will be recorded as accrued income.

Now, Total tuition fees up to year end (i.e. December 31) will be accrued for 2.5 months (i.e. from October 15 to December 31)
For better understanding,
From October 15 to November 15 = due on November 15 (1 month)
From November 15 to December 15 = due on December 15 (1 month)
From December 15 to December 31 = will be due on January 15, But at December 31, applying accrual accounting, half of the fees will be recorded as accrued income. (0.5 month)

Tuition fees for 2.5 months = $2561 per month * 2.5 = $6402.50

Journal Entry will be -
Accounts Receivable................ Dr. $6402.50
To Tuition fees earned................. $6402.50

Year-end balances will be as follows :
Accounts Receivable = $6402.50
Tuition fees earned = $107477 + 6402.50 = $113879.50