wells Technical Institute (WTIl)\' s unadjusted trial balance at 12/31/17 follow

Question

wells Technical Institute (WTIl)' s unadjusted trial balance at 12/31/17 follows: cash accounts receivable teaching supplies prepaid insurance prepaid rent professional library 34000 0 $ 8,000.0 $ 12,000.0 $ 3,000.0 $ 35 uuo.0 accumulated depreciation- library equipment 10,00o.0 $8U,000.0 accumulated depreciation-equip accounts payable salaries payable unearned training fees retained earnings tuition fees earned training fees earned insurance expense salaries expense rent expense teaching supply expense advertising expense utilities expense depreciation expense - library depreciation expense-equipment Total a. An analysis of the insurance policies shows that $2400 of coverage has expired. b. an inventory count reveals that there is $2800 of teaching supplies remaining. c. annual depreciation on the equipment is d. annual depreciation on the library is e. The balance in prepaid rent represents the rent for December. Employees are paid weekly. At the end of the year, two days of salary have $15,000.0 $26,000.0 $ 12,500.0 10,000.0 $30,000.0 123,900.0 S40,000.0 $50,000.0 $33,000.0 6,000.0 6,400.0 267400 267400 13200 7200 accrued at $100 per day per each of two emloyees f. On November 1. WTI started a 6 month training course for a client. The contract calls for a monthly fee of $2500 and the client paid the first five months in advance. The fee for the 6 month will recorded when it is collected in 2018. g. On 10/1, WTI began teaching a 4 month class for an individual for $3000 per month payable at the end of the class. No payment was received at year end. Please make the appropriate adjusting journal entry for the above transactions.

Explanation / Answer

Wells Technical Institute(WTI) Adjusted Journal Entries December 31st 2017 Particular Amount (DR) Amount(Cr) a) Insurance $            2,400.00    To Prepaid Insurance $                 2,400.00 (Being amount of prepaid insurance transfer to insurance a/c ) b) Teaching supplies Expenses=($8000-$2800) $            5,200.00      To Teaching supplies $                 5,200.00 (Being amount of Teaching supplies expenses) c ) Depreciation -Equipment $         13,200.00    To Accumulated Depreciation-Equipment $               13,200.00 (Being amount of Depreciation on Equipment) d) Depreciation-Professional Library $            7,200.00    To Accumulated Depreciation-Professional Library $                 7,200.00 (Being amount of Depreciation on Professional Library) e) Rent A/c $            3,000.00    To Prepaid Rent $                 3,000.00 (Being amount of Rent for Dec) e) Salaries=($100*2employees*2 days)=($100*2*2) $               400.00     To Salary Payable $                     400.00 (Being amount of salary due) e) Unearned Training Fees($2500*2) $            5,000.00    To Training Fees Earned $                 5,000.00 (Being amount of Unearned Training fees) f) Accounts receivable=($3000*3) $            9,000.00    To Tuition Fees earned $                 9,000.00 (Being amount of tuition fees due from Oct to Dec ($3000*3)) Note: As per transaction (e ) Entry was passed at the time of receiving cash on 1st Nov for 5 months Cash   A/C    To Unearned Trainng fees After providing Two months training on Dec 31st unearned Training fees would be transferred to Training fees earned for the month of Nov and Dec

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