Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3
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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 athrough h
that require adjusting entries on December 31, 2017, follow.
Additional Information Items
WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 |
|||||
Debit | Credit | ||||
Cash | $ | 27,849 | |||
Accounts receivable | 0 | ||||
Teaching supplies | 10,710 | ||||
Prepaid insurance | 16,068 | ||||
Prepaid rent | 2,143 | ||||
Professional library | 32,133 | ||||
Accumulated depreciation—Professional library | $ | 9,641 | |||
Equipment | 74,968 | ||||
Accumulated depreciation—Equipment | 17,139 | ||||
Accounts payable | 37,341 | ||||
Salaries payable | 0 | ||||
Unearned training fees | 13,000 | ||||
Common stock | 10,000 | ||||
Retained earnings | 58,123 | ||||
Dividends | 42,845 | ||||
Tuition fees earned | 109,254 | ||||
Training fees earned | 40,702 | ||||
Depreciation expense—Professional library | 0 | ||||
Depreciation expense—Equipment | 0 | ||||
Salaries expense | 51,415 | ||||
Insurance expense | 0 | ||||
Rent expense | 23,573 | ||||
Teaching supplies expense | 0 | ||||
Advertising expense | 7,498 | ||||
Utilities expense | 5,998 | ||||
Totals | $ | 295,200 | $ | 295,200 | |
Problem 3-3A Part 1
Required:
1. Prepare the necessary adjusting journal entries
for items a through h. Assume that adjusting
entries are made only at year-end.
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