Question

Required information The following information applies to the questions displayed belowj 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 a. An analysis of WTI's insurance policies shows that $2,807 of coverage has expired. b. An inventory count shows that teaching supplies costing $2.433 are available at year-end 2017. c. Annual depreciation on the equipment is $11,227 d. Annual depreciation on the professional library is $5,614 e. 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. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,819 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.) 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. < Prev 2 3 of 3 Next>

Answer 1

Part 1.a

No.| Date Account Titles and Explanation DebitCredit a Dec. 31 Insurance expense S 3,864 Prepaid Insurance (To adjust the insurance expense) S 3,864

Part 1.b

No.| Date b Dec. 31 Teaching Supplies Expense Account Titles and Explanation DebitCredit S 6,896 S 6,896 To Teaching Supplies adjust the supplies expense)

Part 1.c

No.Date Account Titles and Explanation DebitCredit Dec. 31 Depreciation Expense -Equipment $15,458 c Accumulated Depreciation-Equipment (To record the annual depreciation of equipment) $15,458

Part 1.d

Account Tit Debit nal library No. Date les and Explanation Credit d Dec. 31 Depreciation Expense -Professional lbrary S 7,729 Accumulated Depreciation -Professio S 7,729 To record the annual depreciation of Professional library)

Part 1.e

No.Date Account Titles and Explanation DebitCredit e Dec. 31 Unearned training fees (2900 x 2 months) S 5,800 Training fees earned S 5.800 (To adjust the unearned training fees)

Part 1.f

No.| Date Account Titles and Explanation DebitCredit f Dec. 31 Accounts receivable S 11,750 Tution fees earned 11,750 (To record the training fees Expense)

Part 1.g

Account Titles and Explanation Debit Credit S 400 No.Date g_Dec. 31 Salaries expense (S200 x2 employees) Salaries Payable S 400 (To adjust the salaries Expense)

Part 1.h

No.Date Account Titles and Explanation Debit Credit S 2,050 h Dec. 31 Rent Expense Prepaid Rent S 2,050 (To adjust the interest Expense)