An analysis of WTI's insurance policies shows that $3,468 of coverage has expired.An inventory count shows that teaching supplies costing $3,006 are available at year-end.Annual depreciation on the equipment is $13,871.Annual depreciation on the professional library is $6,936On September 1, WTI agreed to do five training 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 training courses on September 1, and WTI credited Unearned RevenueOn 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 revenue has been earned by WTIWTI's two employees are paid weekly. As of the end of the year, two days salaries have accrued at the rate of $100 per day for each employee.The balance in the Prepaid Rent account represents rent for December CashAccounts receivableTeaching suppliesPrepaid insurancePrepaid rentProfessional library.Accumulated depreciation-Professional libraryEquipmentAccumulated depreciation-EquipmentAccounts payableSalaries payableUnearned revenueCommon stockRetained earningsDividendsTuition revenueTraining revenueDepreciation expense-Professional libraryDepreciation expense-EquipmentSalaries expenseInsurance expenseWELLS TECHNICAL INSTITUTEUnadjusted Trial BalanceDecember 31Rent expenseTeaching supplies expenseAdvertising expenseUtilities expenseTotalsView transaction listDebit$ 27,547010,59415,8942,12031,78499,00042,3810050,8580Credit$ 9,53716,95422,000013,00024,02783,000108,06940, 26123,32007,4175,933$ 316,848 $ 316,848Required:. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-en Required information[The following information applies to the questions displayed below.]Wells Technical Institute (WTI) provides training to individuals who pay tuition directly to the school. WTI also offers trainingto 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 adjustingentries on December 31.Additional Information Itemsa. 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 training courses for a client for $2,600 each. Two courses will start immediatelyand finish before the end of the year. Three courses will not begin until next year. The client paid $13,000 cash inadvance for all five training courses on September 1, and WTI credited Unearned Revenue.f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an executive with payment due atthe end of the class. At December 31, $10,548 of the tuition revenue has been earned by WTI.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 perday for each employee.h. The balance in the Prepaid Rent account represents rent for December.CashAccounts receivableWELLS TECHNICAL INSTITUTEUnadjusted Trial BalanceDecember 31Debit$27,5470SCredit

The adjusting entries are generally posted when the accounting year ends. The adjusting entries are…

Answered: An analysis of WTI's insurance policies…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An analysis of WTI's insurance policies shows that $3,468 of coverage has expired. An inventory count shows that teaching supplies costing $3,006 are available at year-end. Annual depreciation on the equipment is $13,871. Annual depreciation on the professional library is $6,936 On September 1, WTI agreed to do five training 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 training courses on September 1, and WTI credited Unearned Revenue 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 revenue has been earned by WTI 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

Cash
Accounts receivable
Teaching supplies
Prepaid insurance
Prepaid rent
Professional library.
Accumulated depreciation-Professional library
Equipment
Accumulated depreciation-Equipment
Accounts payable
Salaries payable
Unearned revenue
Common stock
Retained earnings
Dividends
Tuition revenue
Training revenue
Depreciation expense-Professional library
Depreciation expense-Equipment
Salaries expense
Insurance expense
WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31
Rent expense
Teaching supplies expense
Advertising expense
Utilities expense
Totals
View transaction list
Debit
$ 27,547
0
10,594
15,894
2,120
31,784
99,000
42,381
0
0
50,858
0
Credit
$ 9,537
16,954
22,000
0
13,000
24,027
83,000
108,069
40, 261
23,320
0
7,417
5,933
$ 316,848 $ 316,848
Required:
. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-en

Required information
[The following information applies to the questions displayed below.]
Wells Technical Institute (WTI) 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 training 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 training courses on September 1, and WTI credited Unearned Revenue.
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 revenue has been earned by WTI.
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.
Cash
Accounts receivable
WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31
Debit
$27,547
0
S
Credit

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