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. 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

1. An analysis of WTI's insurance policies shows that $3,996 of coverage has expired.
2. An inventory count shows that teaching supplies costing $3,464 are available at year-end.
3. Annual depreciation on the equipment is $15,986.
4. Annual depreciation on the professional library is $7,993.
5. On September 1, WTI agreed to do five courses for a client for $2,400 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 $12,000 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees.
6. 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, $13,653 of the tuition has been earned by WTI.
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
	Debit			Credit
Cash	$	27,547
Accounts receivable		0
Teaching supplies		10,594
Prepaid insurance		15,894
Prepaid rent		2,120
Professional library		31,784
Accumulated depreciation—Professional library				$	9,537
Equipment		98,000
Accumulated depreciation—Equipment					16,954
Accounts payable					21,000
Salaries payable					0
Unearned training fees					12,000
Common stock					24,027
Retained earnings					84,000
Dividends		42,381
Tuition fees earned					108,069
Training fees earned					40,261
Depreciation expense—Professional library		0
Depreciation expense—Equipment		0
Salaries expense		50,858
Insurance expense		0
Rent expense		23,320
Teaching supplies expense		0
Advertising expense		7,417
Utilities expense		5,933
Totals	$	315,848		$	315,848

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.
  

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Answer 1

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Times New Rom - 11 - A A BI U DA Font Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells E F G H I K L Credit Debit $ 3,996.00 3,996.00 $ 7,130.00 7,130.00 G3 А Wells Technical Institute Adjusted Journal Entries 31st December General Journal 5 a) Insurance To Prepaid Insurance (Being amount of prepaid insurance transfer to insurance a/c ) 8 b) Teaching supplies Expenses=($10594-$3464) 9 To Teaching supplies 10 (Being amount of Teaching supplies expenses) 11 c) Depreciation - Equipment 12 To Accumulated Depreciation Equipment 13 (Being amount of Depreciation on Equipment) 14 d) Depreciation-Professional Library 15 To Accumulated Depreciation-Professional Library 16 (Being amount of Depreciation on Professional Library) 17 e) Unearned Training Fees($2400*2) 18 To Training Fees Earned 19 (Being amount of Unearned Training fees) 20 h) Accounts receivable 21 To Tuition Fees earned 22 (Being amount of tuition fees due from Oct to Dec ($3000*3)) 23 g) Isalaries=($100*2*2) Sheet1 Sheet2 Sheet3 Select destination and press ENTER or choose Paste $ 15,986.00 $ 15.986.00 $ 7,993.00 7,993.00 $ 4,800.00 4,800.00 $ 13,653.00 $ 13,653.00 400.00 3O 100% + 0 10:32 02-09-2020 ORA E NG 03-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Times New Rom - 11 - A A BI U DA Font Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells G3 А D E F G H I J K L PF 23 g) $ 400.00 400.00 Salaries=($100*2*2) To Salary Payable (Being amount of salary due) Rent Alc To Prepaid Rent (Being amount of Rent for Dec) $ 2,120.00 2,120.00 Particular Credit To Balance Bld Teaching Supplies Alc Debit Particular By Teaching $ 10,594.00 supplies Expenses By Balance cd $ 10,594.00 Total $ $ $ 7,130.00 3,464.00 10,594.00 Total Particular To Balance B/d Prepaid Insurance Alc Debit $ Particular 15,894.00 By Insurance By Balance cld 15,894.00 Total Credit $ 3,996.00 $ 11,898.00 $ 15,894.00 Total $ Particular To Balance C/d Sheet1 Sheet2 Accumulated Depreciation-Professional Library Debit Particular $ 17,530.00 By Balalnce B/d Credit $ 9,537.00 Sheet3 Ready OU 100% JENG U 10:32 03-02-2020 SA A W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General Times New Rom - 11 - A A BI U DA Font - Wrap Text Merge & Center 1 1 - 3 completion of promote the sense Insert Delete Format Paste Autosum * 2 clear 8-92 Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Filter Editing time Find & Select Alignment Number Cells А В E F G H I J K L Particular To Balance C/d Credit $ 9,537.00 C D Accumulated Depreciation Professional Library Debit Particular $ 17,530.00 By Balance B/d By Depreciation- Professional Library S 17,530.00 Total $ $ 7,993.00 17,530.00 Total Particular To Balance C/d Credit $ 16,954.00 Accumulated Depreciation Equipment Debit Particular $ 32,940.00 By Balance B/d By Depreciation- Equipment $ 32,940.00 Total $ $ 15,986.00 32,940.00 Total Salaries Payable Debit Particular Credit Particular By Salaries 400.00 Expense To Balance cld $ $ 400.00 Total 400.00 Total $ 400.00 $ Unearned Training Fees Debit Particular Credit Particular Sheet1 Sheet2 We Ready Sheet3 OO OPAO 100% @ U 10:32 ENG 02 03-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General 1 D - Wrap Text Merge & Center . 3 AutoSum" AT A Times New Rom - 11 - A A BI U DA Font Paste Format Painter Clipboard Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Cells 2 Clear Sort & Filter Editing Find & Select Alignment Number G3 A F G H I J K L Particular To Training Fees Earned To Balance C/d Total C D E Unearned Training Fees Debit Particular Credit | $ 4,800.00 By Balance B/d | $ 12,000.00 $ 7,200.00 $ 12,000.00 Total $ 12,000.00 Tuition Fees Earned Debit Particular Credit $ 1.21,722.00 By Balance B/d $ 1,08,069.00 By Accounts Receivable $ 13,653.00 $ 1,21,722.00 Total $ 1,21,722.00 Particular To Balance C/d Particular To Balance C/d Training Fees Earned Debit Particular $ 45,061.00 By Balalnce B/d By Unearned Training fees $ 45,061.00 Total Credit $ 40,261.00 $ $ 4,800.00 45,061.00 Depreciation Expense-Professional Library Debit Particular To Balance B/d Sheeti Sheet2 Sheet3 Particular By Balance Cld Credit $ 7,993.00 Ready OU 100% U 10:32 OPAO ENG 02 03-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Times New Rom - 11 - A A BI U DA Font Paste Format Painter Clipboard Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Cells 2 Clear Sort & Filter Editing Find & Select Alignment Number - G3 A B D E F G H I J K L C Depreciation Expense-Professional Library Debit $ - $ 7,993.00 $ 7.993.00 Depreciation Expense-Equipment Debit Particular To Balance B/d To Accumulated Depreciation Total Particular By Balance C/d Credit $ 7,993.00 Total $ 7,993.00 Particular By Balance C/d Credit $ 15,986.00 Particular To Balance Bld To Accumulated Depreciation Total $ $ 15,986.00 15,986.00 Total $ 15,986.00 Particular To Balance B/d To Salary Payable Total Salaries Expenses Debit Particular | $ 50,858.00 | By Balance C/d $ 400.00 $ 51,258.00 Total Credit | $ 51,258.00 $ 51,258.00 Insurance Expenses Debit Particular To Balance Bld To Prepaid Insurance Total Particular By Balance C/d Credit $ 3,996.00 $ $ 3,996.00 3,996.00 98 Total $ 3,996.00 99 H Ready Sheet1 Sheet2 Sheet3 + 0 10:33 1 2 9 * @ @ BOU 100% ve of A DENG @ 03-02-2020

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Times New Rom - 11 - A A BI U DA Font Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells - fx G3 A E F G H I J K L Particular To Balance B/d To Prepaid Rent Total Rent Expenses Debit Particular $ 23.320.00 By Balance Cld $ 2,120.00 $ 25,440.00 Total Credit $ 25,440.00 104 $ 25,440.00 105 Particular To Balance B/d To Teaching Supplies Total Teaching Supplies Expenses Debit $ $ $ Particular By Balance C/d Credit $ 7,130.00 109 7,130.00 7,130.00 Total $ 7,130.00 110 111 112 113 114 Cash Alc Particular To Balance B/d Total Debit Particular $ 27,547.00 By Balance Cld $ 27,547.00 Total Credit $ 27,547.00 $ 27,547.00 116 117 118 Particular To Tuition fees Earned Total Accounts Receivable A/c Debit Particular $ 13,653.00 By Balance Cld $ 13,653.00 Total 119 Credit $ 13,653.00 $ 13,653.00 120 121 Sheet1 Sheet2 Sheet3 Ready U OO op ^ 100% @ ENG 10:33 03-02-2020 0 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Times New Rom - 11 - A A BI U DA Font Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells G3 A C D E F G H I J K L F 122 124 Particular To Balance B/d Total Prepaid Rent Alc Debit $ $ Particular 2,120.00 By Rent Alc 2,120.00 Total Credit $ 2,120.00 $ 2,120.00 127 128 Particular To Balance B/d Professional Library Debit Particular $ 31,784.00 By Balalnce Cld 129 Credit $ 31,784.00 130 Total $ 31,784.00 Total $ 31,784.00 132 134 Equipment Particular To Balance B/d Debit Particular Credit $ 98,000.00 By Balalnce C/d | $ 98,000.00 $ 98,000.00 Total $ 98,000.00 137 Total 139 Particular To Balance Bld Accounts Payable Debit Particular Credit $ 21,000.00 By Balalnce B/d $ 21,000.00 141 142 143 144 Total $ 21,000.00 Total $ 21,000.00 Sheet1 Sheet2 Sheet3 Ready OO op ^ 100% @ ve ENG U 10:33 . 03-02-2020

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Times New Rom - 11 - A A BI U DA Font Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells G3 A к 145 146 Particular To Balance C/d Common Stock Debit Particular Credit $ 24,027.00 | By Balalnce B/d $ 24,027.00 147 148 Total $ 24,027.00 Total $ 24,027.00 149 150 Particular To Balance C/d Retained Earnings Debit Particular Credit | $ 84,000.00 By Balalnce B/d | $ 84,000.00 Total $ 84,000.00 Total $ 84,000.00 Dividend Particular To Balance B/d Total Debit Particular $ 42,381.00 By Balance Cld $ 42,381.00 Total Credit $ 42,381.00 $ 42,381.00 160 161 162 163 164 Particular To Balance B/d Total Advertisement Expenses Debit $ $ Particular 7,417.00 By Balance C/d 7,417.00 Total Credit $ 7,417.00 $ 7,417.00 165 166 167 Ke Ready Sheet1 Sheet2 Sheet30 OO op ^ 100% @ ve ENG U 10:33 o . 03-02-2020

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Times New Rom - 11 - A A BI U DA Font Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells fic G3 A C D E F G H I J K L 162 163 164 Particular To Balance B/d Total Advertisement Expenses Debit $ $ Particular 7,417.00 By Balance C/d 7,417.00 Total Credit $ 7,417.00 $ 7,417.00 165 166 167 168 169 170 Particular To Balance B/d Total Utilities Expenses Debit | $ $ Particular 5,933.00 | By Balance C/d 5,933.00 Total Credit | $ 5,933.00 $ 5,933.00 171 172 174 Wells Technical Institute Adjusted Trial Balance Dec 31st Accounts Title Credit Cash Debit $ 27,547.00 $ 13,653.00 $ 3,464.00 $ 11,898.00 $ 31,784.00 Accounts Receivable Teaching Supplies Prepaid Insurance Prepaid Rent 181 Professional Library Accumulated Depreciation Professional library 183 Accumulated Depreciation-Equipment 184 Equipment 1+1 sheeti Sheetz Sheet360 Ready $ 17,530.00 32,940.00 $ 98,000.00 21 nnnnn! OO of A 100% ve DENG 0 10:33 - 03-02-2020

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Times New Rom - 11 - A A BI U DA Font Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells G3 А D E F G H I J K L 178 179 $ $ 3,464.00 11,898.00 $ 31,784.00 181 182 17,530.00 32.940.00 $ 98,000.00 187 21,000.00 400.00 7,200.00 24,027.00 84,000.00 188 189 190 Teaching Supplies Prepaid Insurance Prepaid Rent Professional Library Accumulated Depreciation Professional library Accumulated Depreciation Equipment Equipment Accounts Payable Salaries Payable Unearned Training Fees Common Stock Retained Earnings Dividends Tuition Fees earned Training Fees earned Depreciation Expenses-Professional Library Depreciation Expenses-Equipment Salaries Expenses Insurance Expenses Rent Expenses Teaching Supplies Expenses Advertisement Expenses Utilities Expenses Total Sheet1 Sheet2 Sheet3 0 42,381.00 1,21,722.00 45,061.00 193 194 195 197 198 199 200 201 $ $ $ $ $ $ $ $ | $ 7,993.00 15.986.00 51,258.00 3,996.00 25,440.00 7,130.00 7,417.00 5,933.00 3,53,880.00 $ 3,53,880.00 Ready OO gl ^ 100% @ ENG U 10:33 03-02-2020 a. W