1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Diano4ka-milaya [45]
3 years ago
9

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, 2015, 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, 2015, follow.Additional Information Itemsa. An analysis of WTI's insurance policies shows that $3,864 of coverage has expired.b. An inventory count shows that teaching supplies costing $3,349 are available at year-end 2015.c. Annual depreciation on the equipment is $15,458.d. Annual depreciation on the professional library is $7,729.e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,900, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2016.f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,700 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)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.WELLS TECHNICAL INSTITUTEUnadjusted Trial BalanceDecember 31, 2015Debit Credit Cash $26,189 Accounts receivable 0 Teaching supplies 10,071 Prepaid insurance 15,110 Prepaid rent 2,015 Professional library 30,217 Accumulated depreciation—Professional library $9,066 Equipment 70,500 Accumulated depreciation—Equipment 16,117 Accounts payable 32,840 Salaries payable 0 Unearned training fees 14,500 Common stock 12,812 Retained earnings 51,250 Dividends 40,291 Tuition fees earned 102,740 Training fees earned 38,275 Depreciation expense—Professional library 0 Depreciation expense—Equipment 0 Salaries expense 48,350 Insurance expense 0 Rent expense 22,165 Teaching supplies expense 0 Advertising expense 7,051 Utilities expense 5,641 Totals $277,600 $277,600 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.2. Prepare an adjusted trial balance
Business
1 answer:
Nataly_w [17]3 years ago
4 0

Answer:

1) a. An analysis of WTI's insurance policies shows that $3,864 of coverage has expired.

Dr Insurance expense 3,864

    Cr Prepaid insurance 3,864

b. An inventory count shows that teaching supplies costing $3,349 are available at year-end 2015.

Dr Teaching supplies expense 6,722

    Cr Teaching supplies 6,722

c. Annual depreciation on the equipment is $15,458.

Dr Depreciation expense 15,458

    Cr Accumulated depreciation: equipment 15,458

d. Annual depreciation on the professional library is $7,729.

Dr Depreciation expense 7,729

    Cr Accumulated depreciation: professional library 7,729

e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,900, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2016.

Dr Unearned training fees 5,800

    Cr Training fees earned 5,800

f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,700 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)

Dr Accounts receivable 11,750

    Cr Tuition fees earned 11,750

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.

Dr Salaries expense 400

    Cr Salaries payable 400

h. The balance in the Prepaid Rent account represents rent for December.

Dr Rent expense 2,015

    Cr Prepaid rent 2,015

2) Wells Technical Institute (WTI)

Adjusted Trial Balance

For the year ended December 31, 2015

                                                  Debit                  Credit

Cash                                       $26,189

Accounts receivable              $11,750

Prepaid rent                               $0

Teaching supplies                  $3,349

Prepaid insurance                  $11,246

Professional library                $30,217

Accumulated depreciation:                                 $16,795

Professional library

Equipment                              $70,500

Accumulated depreciation:                                 $31,575

Equipment

Accounts payable                                                $32,840

Salaries payable                                                       $400

Unearned training fees                                         $8,700

Common stock                                                      $12,812

Retained earnings                                                $51,250

Dividends                                 $40,291

Tuition fees earned                                             $114,490

Training fees earned                                           $44,075

Depreciation expense:             $7,729

Professional library

Depreciation expense:            $15,458

Equipment

Salaries expense                     $48,750

Insurance expense                    $3,864

Rent expense                            $24,180

Teaching supplies expense      $6,722

Advertising expense                   $7,051

Utilities expense                        <u>  $5,641   </u>             <u>                </u>  

Totals                                          $312,937              $312,937

You might be interested in
True or false: one reason for the growth of sponsorships has been the need for companies to break through the clutter of adverti
gizmo_the_mogwai [7]

It is True that one reason for the growth of sponsorships has been the need for companies to break through the clutter of advertising.

<h3>What is the purpose of sponsorships in a firm?</h3>

sponsorships is essential for the firm because it will help them to be able to sponsor their advertisement of their brand so as to bring more profit.

In this case, It is True that one reason for the growth of sponsorships has been the need for companies to break through the clutter of advertising.

Learn more about sponsorships on:

brainly.com/question/1047489

#SPJ1

3 0
2 years ago
A​ 20% increase in sales causes EPS to rise from​ $4.00 to​$6.50. Assuming the firm has no​ debt, what is its degree of operatin
Anna [14]

Answer:

A

Explanation:

DOL =  Percentage change in EBIT / percentage change in sales

EPS = {(EBIT - Interest) × (1 - T) } / Shares

The firm has no debt, so interest would be zero

EPS = EBIT × (1 - T) / Shares.

Tax rate and number of outstanding shares remain unchanged.

Percentage Change in EPS = EBIT.

Percentage Change in EPS = (6.5 / 4) - 1 = 0.625 = 62.5%

EBIT = 62.5%

Percentage change in sales= 20%

DOL =  62.5% / 20% =  3.13

5 0
3 years ago
Which is the best answer
Ipatiy [6.2K]
The answer would be between A and D.
3 0
3 years ago
MicroTech Corporation maintains a capital structure of 40 percent debt and 60 percent common equity. To finance its capital budg
timama [110]

Answer:

weighted cost of capital for next year is 10.27 %.

Explanation:

Weighted cost of capital = Ke × (E/V) + Kd × (D/V)

Ke = Cost of Equity

    = Dividend Yield + Expected growth rate

    = $1.30 / $30.00 + 0.07

    = 0.11333 or 11.33 %

Kd = Cost of Debt

     = Interest × (1 - tax rate)

     = 11% × ( 1 - 0.21)

     = 8.69 %

Weighted cost of capital =  11.33 % × 60% + 8.69 % × 40%

                                         = 10.27 %

5 0
2 years ago
An approach of open communication and collaborative decision making suggests which type of leadership
frez [133]
An approach of open communication and collaborative decision making suggests which the democratic type of leadership. This type of leadership which includes <span> participative role of the members in the decision-making process is also called </span>participative leadership or shared leadership.
Mutual respect and understanding is crucial in order this type of leadership to be successful. 
4 0
3 years ago
Other questions:
  • What is a risk assessment?
    8·1 answer
  • The standards for product V28 call for 8.6 pounds of raw material that costs $19.00 per pound. Last month, 2,600 pounds of the r
    7·1 answer
  • In order to ensure success, what are the five rules you need to follow before going into business for yourself?
    15·2 answers
  • Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table
    6·1 answer
  • An article in the Wall Street Journal noted that the demand for video Internet advertising was increasing at the same time that
    5·1 answer
  • A production facility is trying to determine the best batch size for an item that is produced intermittently. This item has an a
    15·1 answer
  • Which of the following is NOT a valid principle of bottleneck​ management?
    14·1 answer
  • Lumpkin Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purc
    13·1 answer
  • Jubilee, Inc., owns 30 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory cos
    9·1 answer
  • On August 22, Year 4, Martha purchases a computer to use in her childcare business. She sells the computer on December 28, Year
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!