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
KatRina [158]
2 years ago
5

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. 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
An analysis of WTI's insurance policies shows that $2,400 of coverage has expired.
An inventory count shows that teaching supplies costing $2,800 are available at year-end.
Annual depreciation on the equipment is $13,200.
Annual depreciation on the professional library is $7,200.
On September 1, WTI agreed to do five 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 paid $12,500 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees.
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 tuition 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.
WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31
Debit Credit
Cash $ 34,000
Accounts receivable 0
Teaching supplies 8,000
Prepaid insurance 12,000
Prepaid rent 3,000
Professional library 35,000
Accumulated depreciation—Professional library $ 10,000
Equipment 80,000
Accumulated depreciation—Equipment 15,000
Accounts payable 26,000
Salaries payable 0
Unearned training fees 12,500
Common stock 10,000
Retained earnings 80,000
Dividends 50,000
Tuition fees earned 123,900
Training fees earned 40,000
Depreciation expense—Professional library 0
Depreciation expense—Equipment 0
Salaries expense 50,000
Insurance expense 0
Rent expense 33,000
Teaching supplies expense 0
Advertising expense 6,000
Utilities expense 6,400
Totals $ 317,400 $ 317,400
Required:
1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.
An analysis of WTI's insurance policies shows that $2,400 of coverage has expired.
Business
1 answer:
g100num [7]2 years ago
8 0

The necessary adjusting journal entries for items a through h are:

Wells Technical Institute Adjusting journal entries

a) Dec 31

Dr Insurance Expense $2,400

Cr Prepaid Insurance $2,400

b) Dec 31

Dr Teaching Supplies Expense $5,200

Cr Teaching Supplies $5,200

($8,000-$2,800)

c) Dec 31

Dr Depreciation Expense- Equipment $13,200

Cr Accumulated Depreciation- Equipment $13,200

d) Dec 31

Dr Depreciation Expense -Prof Library $7,200

Cr Accumulated Depreciation- Prof Library $7,200

e) Dec 31

Dr Unearned Revenue $5,000

Cr Training Revenue $5,000

($2,500×2 courses)

f) Dec 31

Dr Account Receiveble $7,500

Cr Tuition Revenue $7,500

g) Dec 31

Dr Salaries Expense $400

Cr Salaries Payable $400

($100×2 employees×2 days)

h) Dec 31

Dr Rent Expense $3,000

Cr Prepaid Rent $3,000

Learn more here:

brainly.com/question/14999256

You might be interested in
As you get closer to needing the money from an investment, what happens to your risk tolerance
Sedbober [7]

Risk tolerance gets lower and lower as you get closer to needing the money from your investment.

If you don't need the money for 50 years, you are more likely to take risks in the stock market or other higher risk investments in return for higher rewards. If you need the money tomorrow, you will not be willing to risk it all in the stock market because even though it <em>could </em>double, you might lose it all.

8 0
2 years ago
Because of uncertainty about future inflation, the union devotes a large quantity of resources to monitoring inflation indicator
IrinaVladis [17]

Answer:

C. Variable inflation is associated with high transaction costs

Explanation:

Because of uncertainty about future inflation, it may not uncertain relative to its price change. Therefore, option A is not correct.

In order to maximize financial position, inflation harms borrowers and helps lenders, so option B is also incorrect.

Option C is correct because variable inflation is associated with high transaction costs in order to maximize the financial position. For example, if the inflation rate is 5% during first quarter, the price level is not much to disrupt the financial position. Again, in the next quarter, if the inflation rate changes to 4%, the position will be effective more. However, if it increases, it will not affect too much.

7 0
3 years ago
Most state, federal, and local regulations apple only to large corporation.
beks73 [17]

the answer is ( true )

6 0
3 years ago
At december 31, 2014 rice company had 300,000 shares of common stock and 10,000 shares of 8%, $100 par value cumulative preferre
vitfil [10]

The company has declared a 100% stock dividend on its common stock will not be considered while calculating the earnings per common shares should be.

Earnings per share = Net Income / Number of equity shares.

where Net Income = $1,520,000

Common equity shares = 300,000

Earnings per share = $1,520,000 / 300,000

Earnings per share = $5.07

Therefore, earnings per common share for year 2015 for Rice Corporation is $5.07

7 0
3 years ago
Because Brianna loves Chinese food, she was eager to check out a new Chinese restaurant. The restaurant had undertaken a large-s
Lana71 [14]

The Chinese restaurant failed to realize the importance of "word-of-mouth marketing."

<h3>What is word-of-mouth marketing?</h3>

Whenever a consumer's interest inside a company's service or product is reflected in their regular conversations, this is referred to as word-of-mouth marketing (also WOM marketing). Basically, it is free promotion brought on by consumer experiences, which are typically above and beyond their expectations.

Some key features regarding word-of-mouth marketing are-

  • Word-of-mouth marketing occurs when customers recommend a business's goods or services to their friends, relatives, and other people they value highly.
  • WOM marketing is among the most effective kinds of advertising since 88% of consumers prefer suggestions from their friends than those in traditional media.
  • By exceeding customer expectations with a product, delivering first-rate customer service, and providing consumers with insider knowledge, businesses can promote WOM marketing.
  • The finest word-of-mouth marketing methods, according to Word of Mouth Marketing Association (WOMMA), are sincere, credible, sociable, repeatable, measurable, and respectful.

To know more about the word-of-mouth marketing, here

brainly.com/question/15472521

#SPJ4

6 0
1 year ago
Other questions:
  • Cawley Company makes three models of tasers. Information on the three products is given below.
    14·1 answer
  • Pittsburg Resources acquired a coal mine for $6,000,000. The company’s survey estimates that 120,000 tons of coal can be extract
    12·1 answer
  • Park co. shipped inventory on consignment to recreations co. that cost $50,000. recreations paid $1,200 for advertising that was
    11·1 answer
  • Variable costs ______. remain constant in total and vary per unit. remain constant per unit and vary in total. remain constant b
    8·1 answer
  • Beginning with __________, a body of law has grown that requires organizations to provide employees with nonhazardous working co
    5·1 answer
  • he Alford Group had 220,000 shares of common stock outstanding at January 1, 2018. The following activities affected common shar
    6·1 answer
  • Information on Wolfen Company's direct labor costs for the month of January follows: Actual direct labor rate $5.00 Standard dir
    6·1 answer
  • Suppose Joe purchases the factory using $200,000 of his own money and $200,000 borrowed from a bank at an interest rate of 6 per
    11·1 answer
  • Unit price times quantity sold is ______. Multiple choice question. the break-even point total variable cost total profit total
    6·1 answer
  • The practices that organizations and their managers use for identifying, creating, acquiring, developing, dispersing, and exploi
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!