Wells Technical Institute (WTI), a school owned by Tristana Wells, provides trai

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. 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

An analysis of WTI's insurance policies shows that $2,674 of coverage has expired.

An inventory count shows that teaching supplies costing $2,318 are available at year-end 2017.

Annual depreciation on the equipment is $10,698.

Annual depreciation on the professional library is $5,349.

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 $2,900, 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-month class (beginning immediately) for an individual for $2,361 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.)

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.

The balance in the Prepaid Rent account represents rent for December.

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

WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31, 2017 Debit Credit Cash $ 28,000 Accounts receivable 0 Teaching supplies 10,768 Prepaid insurance 16,155 Prepaid rent 2,155 Professional library 32,307 Accumulated depreciation—Professional library $ 9,693 Equipment 75,368 Accumulated depreciation—Equipment 17,232 Accounts payable 36,113 Salaries payable 0 Unearned training fees 14,500 T. Wells, Capital 68,493 T. Wells, Withdrawals 43,078 Tuition fees earned 109,846 Training fees earned 40,923 Depreciation expense—Professional library 0 Depreciation expense—Equipment 0 Salaries expense 51,694 Insurance expense 0 Rent expense 23,705 Teaching supplies expense 0 Advertising expense 7,539 Utilities expense 6,031 Totals $ 296,800 $ 296,800 2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. 2-b. Prepare an adjusted trial balance. Complete this question by entering your answers in the tabs below. Req 2A Req 2B Post the balance from the unadjusted trial baance and the adusting entries in to the T accounts. Cash Equipment Unadj. Bal. 28,000 Unadj. Bal. Adj Bal. 28,000 Adj. Bal. Accounts Receivable Accumulated Depreciation-Equipment Unadj. Bal. Unadj. Bal.

Explanation / Answer

2-a.

2-b.

Note: Amounts have not been rounded off since no instructions provided in the question regarding the same.

Cash Accounts Receivable Teaching Supplies Unadj. Bal. 28000 Unadj. Bal. 0 Unadj. Bal. 10768 f. 5902.5 b. 8450 Adj. Bal. 28000 Adj. Bal. 5902.5 Adj. Bal. 2318 Prepaid Insurance Prepaid Rent Professional Library Unadj. Bal. 16155 Unadj. Bal. 2155 Unadj. Bal. 32307 a. 2674 h. 2155 Adj. Bal. 13481 Adj. Bal. 0 Adj. Bal. 32307 Accumulated depreciation-Prof. library Equipment Accumulated depreciation-equipment Unadj. Bal. 9693 Unadj. Bal. 75368 Unadj. Bal. 17232 d. 5349 c. 10698 Adj. Bal. 15042 Adj. Bal. 75368 Adj. Bal. 27930 Accounts Payable Salaries Payable Unearned Training Fees Unadj. Bal. 36113 Unadj. Bal. 0 Unadj. Bal. 14500 g. 400 e. 5800 Adj. Bal. 36113 Adj. Bal. 400 Adj. Bal. 8700 T. Wells, Capital T. Wells, Withdrawals Tuition Fees Earned Unadj. Bal. 68493 Unadj. Bal. 43078 Unadj. Bal. 109846 f. 5902.5 Adj. Bal. 68493 Adj. Bal. 43078 Adj. Bal. 115748.5 Training Fees Earned Depreciation expense-Prof. Library Depreciation expense-equipment Unadj. Bal. 40923 Unadj. Bal. 0 Unadj. Bal. 0 e. 5800 d. 5349 c. 10698 Adj. Bal. 46723 Adj. Bal. 5349 Adj. Bal. 10698 Salaries Expense Insurance Expense Rent Expense Unadj. Bal. 51694 Unadj. Bal. 0 Unadj. Bal. 23705 g. 400 a. 2674 h. 2155 Adj. Bal. 52094 Adj. Bal. 2674 Adj. Bal. 25860 Teaching Supplies Expense Advertising Expense Utilities Expense Unadj. Bal. 0 Unadj. Bal. 7539 Unadj. Bal. 6031 b. 8450 Adj. Bal. 8450 Adj. Bal. 7539 Adj. Bal. 6031

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