Question

wells technical

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 $3,468 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,006 are available at year-end. c. Annual depreciation on the equipment is $13,871. d. Annual depreciation on the professional library is $6,936. e. On September 1. WTI agreed to do five courses for a client for $2,600 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 $13,000 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees f. 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, $10.548 of the tuition has been earned by WTL g. WII's two employees are paid weekly. As of the end of the year, two days salaries have accrued at me fate $100 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December

Answer 1

Adjusting entry

No	General Journal	Debit	Credit
1	Insurance expense	3468
	Prepaid insurance		3468
2	Teaching supplies expense	7123
	Teaching supplies (10129-3006)		7123
3	Depreciation expense	13871
	Accumulated depreciation-equipment		13871
4	Depreciation expense	6936
	Accumulated depreciation-Professional library		6936
5	Unearned training fees (2600*2)	5200
	Training fees		5200
6	Account receivable	10548
	Tuition fees earned		10548
7	Salaries expense (100*2*2)	400
	Salaries payable		400
8	Rent expense	2027
	Prepaid rent		2027