Question

Required information The following information applies to the questions displayed below) 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 a. An analysis of WTI's insurance policies shows that $3,600 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,120 are available at year-end c. Annual depreciation on the equipment is $14,400. d. Annual depreciation on the professional library is $7,200. e. On September 1, WTI agreed to do five courses for a client for $2,900 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 $14,500 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees 1. 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, $10.450 of the tuition has been earned by WTI. 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

Answer 1

No.	Date	Account titles and explanation	Debit	Credit
(a)	Dec 31	Insurance expense	$3600
		Prepaid insurance		$3600
		(To record prepaid insurance expired)
(b)	Dec 31	Teaching supplies expense ($10245-3120)	$7125
		Teaching supplies		$7125
		(To record teaching supplies expense)
(c)	Dec 31	Depreciation expense- Equipment	$14400
		Accumulated depreciation- Equipment		$14400
		(To record depreciation expense of equipment)
(d)	Dec 31	Depreciation expense- Professional library	$7200
		Accumulated depreciation- Professional library		$7200
		(To record depreciation expense of Professional library)
(e)	Dec 31	Unearned training fees ($2900*2)	$5800
		Training fees earned		$5800
		(To record training fees earned)
(f)	Dec 31	Accounts receivable	$10450
		Tuition fees earned		$10450
		(To record tuition fees earned)
(g)	Dec 31	Salaries expense ($100*2*2)	$400
		Salaries payable		$400
		(To record accrued salaries)
(h)	Dec 31	Rent expense	$2050
		Prepaid rent		$2050
		(To record rent expense)