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View History Bookmarks Tools Window Help 84 El Connect-Class: Principles c X Getting Ready To Ask Out L. + a https://newconnect.mheducation.com/flow/connect.html ed Latest Headlines G b dot evans -Goog... G New Tab YouTube G university of richm... G Google rk Assignment 2 80% Required information The following information applies to the questions displayed below) Wells Technical Institute (WTO, 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 $2.400 of coverage has expired b. An inventory count shows that teaching supplies costing $2,800 are available at year-end 2017, c. Annual depreciation on the equipment is $13,200 Annual depreciation on the professional library is $7200 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 $2,500, 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. On October 15, WTI agreed to teach a four class (beginning immediately) for an individual for $3.000 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been re accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual) ceived. (WTI's 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 WELLS TECHN?CAL INSTITUTE Unadjusted Trial Balance Decenber 31, 2017 34,000 34,000 creit Accounts receivable Teachlng supplies Prepaid Lnsurance Prepaid rent 8, 000 12,000 ,000

Explanation / Answer

Cash

Transaction General Journal Debit Credit a. Insurance expense 2,400 Prepaid insurance 2,400 b. Teaching supplies expense (8000-2800) 5,200 Teaching supplies 5,200 c. Depreciation expense—Equipment 13,200 Accumulated depreciation—Equipment 13,200 d. Depreciation expense—Professional library 7,200 Accumulated depreciation—Professional library 7,200 e. Unearned training fees (2500 x 2) 5,000 Training fees earned 5,000 f. Accounts receivable (3000 x 2.5) 7,500 Tuition fees earned 7,500 g. Salaries expense (100 x 2 x 2) 400 Salaries payable 400 h. Rent expense 3,000 Prepaid rent 3,000

Cash

Equipment Unadj. Bal. 34,000 Unadj. Bal. 80,000 Adj. Bal. 34,000 Adj. Bal. 80,000 Accounts Receivable Accumulated
Depreciation—Equipment Unadj. Bal. 0 Unadj. Bal. 15,000 f 7,500 c 13,200 Adj. Bal. 7,500 Adj. Bal. 28,200 Teaching Supplies Accounts Payable Unadj. Bal. 8,000 0 Unadj. Bal. 26,000 0 b 5,200 0 0 0 0 Adj. Bal. 2,800 Adj. Bal. 26,000 Prepaid Insurance Salaries
Payable Unadj. Bal. 12,000 Unadj. Bal. 0 a 2,400 g 400 Adj. Bal. 9,600 Adj. Bal. 400 Prepaid Rent Unearned
Training Fees Unadj. Bal. 3,000 Unadj. Bal. 12,500 h 3,000 e 5,000 Adj. Bal. 0 Adj. Bal. 7,500 Professional Library T. Wells,
Capital Unadj. Bal. 35,000 Unadj. Bal. 90,000 Adj. Bal. 35,000 Adj. Bal.       90,000 Accumulated Depreciation—Professional Library T.Wellsm
Withdrawals Unadj. Bal. 10,000 Unadj. Bal. 50,000 d 7,200 Adj. Bal. 17,200 Adj. Bal. 50,000 Tuition Fees Earned Insurance
Expense Unadj. Bal. 123,900 Unadj. Bal. 0 f 7,500 a 2,400 Adj. Bal. 131,400 Adj. Bal. 2,400 Training Fees Earned Rent Expense Unadj. Bal. 0 40,000 Unadj. Bal. 33,000 0 e 5,000 h 3,000 Adj. Bal. 45,000 Adj. Bal. 36,000 Depreciation Expense—Professional Library Teaching
Supplies Expense Unadj. Bal. 0 Unadj. Bal. 0 d 7,200 b 5,200 Adj. Bal. 7,200 Adj. Bal. 5,200 Depreciation Expense—Equipment Advertising
Expense Unadj. Bal. 0 Unadj. Bal. 6,000 c 13,200 Adj. Bal. 13,200 Adj. Bal. 6,000 Salaries Expense Utilities
Expense Unadj. Bal. 50,000 Unadj. Bal. 6,400 g 400 Adj. Bal. 50,400 Adj. Bal. 6,400 WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31, 2017 Debit Credit Cash $34,000 Accounts receivable 7,500 Teaching supplies 2,800 Prepaid insurance 9,600 Prepaid rent 0 Professional library 35,000 Accumulated depreciation—Professional
library 17,200 Equipment 80,000 Accumulated depreciation—Equipment 28,200 Accounts payable 26,000 Salaries payable 400 Unearned training fees 7,500 T. Wells, Capital 90,000 T. Wells, Withdrawal 50,000 Tuition fees earned 131,400 Training fees earned 45,000 Depreciation expense—Professional
library 7,200 Depreciation expense—Equipment 13,200 Salaries expense 50,400 Insurance expense 2,400 Rent expense 36,000 Teaching supplies expense 5,200 Advertising expense 6,000 Utilities expense 6,400 Totals       345,700       345,700

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