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 $3,600 of coverage has expired.
2. An inventory count shows that teaching supplies costing $3,120 are available at year-end.
3. Annual depreciation on the equipment is $14,400.
4. Annual depreciation on the professional library is $7,200.
5. On September 1, WTI agreed to do five courses for a client for $2,700 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 $13,500 cash in advance for all five courses on September 1, and WTI credited Unearned Revenue.
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, $10,950 of the tuition revenue 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	$	26,944
Accounts receivable		0
Teaching supplies		10,362
Prepaid insurance		15,545
Prepaid rent		2,073
Professional library		31,088
Accumulated depreciation—Professional library				$	9,328
Equipment		104,000
Accumulated depreciation—Equipment					16,582
Accounts payable					24,000
Salaries payable					0
Unearned revenue					13,500
Common stock					32,577
Retained earnings					76,000
Dividends		41,452
Tuition revenue					105,701
Training revenue					39,379
Depreciation expense—Professional library		0
Depreciation expense—Equipment		0
Salaries expense		49,743
Insurance expense		0
Rent expense		22,803
Teaching supplies expense		0
Advertising expense		7,254
Utilities expense		5,803
Totals	$	317,067		$	317,067

2-a. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts.
2-b. Prepare an adjusted trial balance.
PLEASE

Answer 1

WTI Wells Technical Institute Journal entries No. Account Insurance expense Prepaid Insurance Credit Calculation Debit $ 3,600 a $ 3,600 b $ 7,242 10362-3120 Teaching Supplies expense Teaching Supplies $ 7,242 с $ 14,400 Depreciation expense- Equipment Accumulated Depreciation-Equipment $ 14,400 d $ 7,200 Depreciation expense- Prof Library Accumulated Depreciation Professional Library $ 7,200 e $5,400 2700*2 Unearned Training Fees Training fees eanred $ 5,400 f $ 10,950 Accounts Receivable Tuition fees eanred $ 10,950 g $ 400 =100*2*2 Salaries expense Salaries Payable $ 400 h $ 2,073 Rent expense Prepaid Rent $ 2,073

Wells Technical Institute T Accounts Date Debit Date Cash Unadj Bal $ 26,944 Credit Credit Date Debit Date Equipment Unadj Bal $ 104,000 Adj Bal $ 26,944 Accounts Receivable Unadj Bal $ 31-Dec $ 10,950 Adj Bal $ 104,000 Accum. Depr. - Equipment Unadj Bal $16,582 31-Dec $ 14,400 Adj Bal $ 10,950 Teaching Supplies $ 10,362 31-Dec $ Adj Bal $ 30,982 Accounts Payable Unadj Bal $ 24,000 Unadj Bal 7,242 Adj Bal $ 3,120 Prepaid Insurance $ 15,545 31-Dec $ Adj Bal $ 24,000 Salaries Payable Unadj Bal $ 31-Dec $ 400 Unadj Bal 3,600 Adj Bal $ 11,945 Prepaid Rent $ 2,073 31-Dec $ Adj Bal $ 400 Unearned Training Fees Unadj Bal $ 13,500 31-Dec $ 5,400 Unadj Bal 2,073 Adj Bal $ Professional Library $ 31,088 Adj Bal $ 8,100 Common Stock Unadj Bal $32,577 Unadj Bal $ 32,577 Adj Bal $ 31,088 Adj Bal Accum. Depr. - Professional Library Dividends Unadj Bal $ 9,328 Unadj Bal $ 41,452 31-Dec $ 7,200 Adj Bal $ 16,528 Adj Bal Tuition fees earned Unadj Bal $ 105,701 31-Dec $ 10,950 $ 41,452 Retained Earnings Unadj Bal $ 76,000 $ 76,000 Adj Bal $ 116,651 Adj Bal Training fees earned Rent expense Unadj Bal $ 39,379 Unadj Bal $ 22,803 31-Dec $ 5,400 31-Dec $ 2,073 Adj Bal $ 44,779 Adj Bal $ 24,876 Depreciation expense-Professional Library Teaching Supplies expense Unadj Bal $ Unadj Bal $ 31-Dec $ 7,200 31-Dec $ 7,242 Adj Bal $ 7,200 Depreciation expense-Equipment Unadj Bal $ 31-Dec $ 14,400 Adj Bal $ 7,242 Advertising expense Unadj Bal $ 7,254 Adj Bal $ 14,400 Salaries expense Unadj Bal $ 49,743 31-Dec $ 400 Adj Bal $ 7,254 Utilities expense Unadj Bal $ 5,803 Adj Bal $ 5,803 Adj Bal $ 50,143 Insurance expense Unadj Bal $ 31-Dec $ 3,600 Adj Bal $ 3,600

Adjusted TB Debit Credit 26,944 10,950 3,120 11,945 Wells Technical Institute Account Names Cash Accounts Receivable Teaching Supplies Prepaid Insurance Prepaid Rent Professional Library Accumulated Depreciation-Professional Library Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Unearned Training Fees Common Stock Retained Earnings Dividends Tuition fees eanred Training fees eanred Depreciation expense- Prof Library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching Supplies expense Advertising expense Utilities expense Totals 31,088 16,528 104,000 30,982 24,000 400 8,100 32,577 76,000 41,452 116,651 44,779 7,200 14,400 50,143 3,600 24,876 7,242 7,254 5,803 350,017 350,017