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

Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.
  

Answer is complete and correct.

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.
  

Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts.

3-a. Prepare Wells Technical Institute's income statement for the year 2017.
3-b. Prepare Wells Technical Institute's statement of owner's equity for the year 2017.
3-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2017.

No Transaction General Journal Debit Credit 1 a. Insurance expenseselected answer correct 3,335selected answer correct not attempted Prepaid insuranceselected answer correct not attempted 3,335selected answer correct 2 b. Teaching supplies expenseselected answer correct 7,645selected answer correct not attempted Teaching suppliesselected answer correct not attempted 7,645selected answer correct 3 c. Depreciation expense—Equipmentselected answer correct 13,342selected answer correct not attempted Accumulated depreciation—Equipmentselected answer correct not attempted 13,342selected answer correct 4 d. Depreciation expense—Professional libraryselected answer correct 6,671selected answer correct not attempted Accumulated depreciation—Professional libraryselected answer correct not attempted 6,671selected answer correct 5 e. Unearned training feesselected answer correct 5,000selected answer correct not attempted Training fees earnedselected answer correct not attempted 5,000selected answer correct 6 f. Accounts receivableselected answer correct 10,153selected answer correct not attempted Tuition fees earnedselected answer correct not attempted 10,153selected answer correct 7 g. Salaries expenseselected answer correct 400selected answer correct not attempted Salaries payableselected answer correct not attempted 400selected answer correct 8 h. Rent expenseselected answer correct 2,108selected answer correct not attempted Prepaid rentselected answer correct not attempted 2,108selected answer correct

Explanation / Answer

1. T-accounts

2.Adjustment Journal entries

3. Adjusted trial balance

4. Income Statement and Statement of owners' equity

Balance sheet

Cash Accounts Receivable Teaching supplies Event Debit Credit Event Event Debit Credit Event Event Debit Credit Event Beg.Bal 34000 Beg.Bal 0 Beg.Bal 8000 5200 b f 7500 End.Bal 34000 End Bal 7500 8000 5200 End.Bal. 2800 Prepaid Insurance Prepaid Rent Professional lbrary Event Debit Credit Event Event Debit Credit Event Event Debit Credit Event Beg.Bal 12000 2400 a Beg.Bal 3000 Beg.Bal 35000 3000 h 12000 2400 3000 3000 End.Bal. 35000 End.Bal. 9600 End.Bal. 0 Accumulated depreciation - Profess. Liabrary Equipment Accumualted Depreciation - Equipment Event Debit Credit Event Event Debit Credit Event Event Debit Credit Event Beg.Bal 10000 Beg.Bal 80000 Beg.Bal 15000 7200 d 13200 c 80000 17200 28200 End.Bal. 17200 End.Bal. 80000 End.Bal. 28200 Accounts payable Salaries payable Unearned training fee Event Debit Credit Event Event Debit Credit Event Event Debit Credit Event Beg.Bal 26000 Beg.Bal 0 Beg.Bal 12500 400 g e 5000 End Bal 26000 End Bal 400 5000 12500 End Bal 7500 T.Wells - capital Tution fee earned Training fee earned Event Debit Credit Event Event Debit Credit Event Event Debit Credit Event Beg.Bal 90000 Beg.Bal 123900 Beg.Bal 40000 7500 f 5000 e 45000 End Bal 90000 End Bal 131400 End Bal 45000 Depreciation expense - Professional Library Depreciation expense - Equipment Salaries expense Event Debit Credit Event Event Debit Credit Event Event Debit Credit Event Beg.Bal 0 Beg.Bal 0 Beg.Bal 50000 d 7200 c 13200 g 400 7200 13200 50400 End Bal 7200 0 End Bal 13200 0 End Bal 50400 Insurance expense Rent expense Teaching supplies expense Event Debit Credit Event Event Debit Credit Event Event Debit Credit Event Beg.Bal 0 Beg.Bal 33000 Beg.Bal 0 a 2400 h 3000 b 5200 2400 36000 5200 End Bal 2400 End Bal 36000 End Bal 5200 0 Advettising expense Utilities expense t. Wells - Withdrawals Event Debit Credit Event Event Debit Credit Event Event Debit Credit Event Beg.Bal 6000 Beg.Bal 6400 Beg.Bal 0 50000 6000 6400 0 50000 End Bal 6000 End Bal 6400 End Bal 50000

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