Required information Problem 3-3A (Statie) Preparing adjusting entrles, odjusted trlal balance, and financlal statements LO P1, P2, P3, P4, P5 [The following information applies to the questions dlisplayed below) Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to Indivduals who pay tultion 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 hthat require adjusting entries on December 31. Additional Information 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 avallable at year-end. d. Annual depreciation on the professional library Is $7,200. e. On September 1, WTI agreed to do five tralning courses for a client for $2,500 each. Two courses will start Immediately and finish before the end of the year. Three courses will not begin until next year. The client pald $12,500 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, $7,500 of the tultion revenue has been earned by WTI. g. WTI's two employees are pald 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. HELLS TECHNICAL INSTITUTE Unad justed Trial Balance December 31 Debit Credit Cash Accounts receivable $ 34,000 Teaching supplies Prepaid insurance Prepaid rent Professional 1ibrary Accunulated depreciation-Professional 1ibrary Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue T. Wells, Caplital T. Wells, Withdrawals Tuition revenue 8,000 12,000 3,00e 35,000 $ 10,000 Be, 00e 15,000 26,000 12,500 90,000 5e, 00e 123,900 40, e00 Training revenue Depreciation expense-Professional 1ibrary Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense 5e, 000 33,000 6,000 6,400 $ 317,400 Totals $ 317,400

Required information Problem 3-3A (Statie) Preparing adjusting entrles, odjusted trlal balance, and financlal statements LO P1, P2, P3, P4, P5 [The following information applies to the questions dlisplayed below) Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to Indivduals who pay tultion 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 hthat require adjusting entries on December 31. Additional Information 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 avallable at year-end. d. Annual depreciation on the professional library Is $7,200. e. On September 1, WTI agreed to do five tralning courses for a client for $2,500 each. Two courses will start Immediately and finish before the end of the year. Three courses will not begin until next year. The client pald $12,500 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, $7,500 of the tultion revenue has been earned by WTI. g. WTI's two employees are pald 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. HELLS TECHNICAL INSTITUTE Unad justed Trial Balance December 31 Debit Credit Cash Accounts receivable $ 34,000 Teaching supplies Prepaid insurance Prepaid rent Professional 1ibrary Accunulated depreciation-Professional 1ibrary Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue T. Wells, Caplital T. Wells, Withdrawals Tuition revenue 8,000 12,000 3,00e 35,000 $ 10,000 Be, 00e 15,000 26,000 12,500 90,000 5e, 00e 123,900 40, e00 Training revenue Depreciation expense-Professional 1ibrary Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense 5e, 000 33,000 6,000 6,400 $ 317,400 Totals $ 317,400

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter15: Preparing Adjusting Entries And A Trial Balance

Section15.4: Calculating Federal Income Tax

Problem 1WT

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