a. An analysis of WTI s insurance policies shows that $2,400 of coverage has expired. b....

 

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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 available at year-end. c. Annual depreciation on the equipment is $13,200. d. Annual depreciation on the professional library is $7,200. 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 $2,500, and the client paid the first five months fees in advance. When the cash was received, the Unearned Training Fees account was credited. 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 tuition has been earned by WTI. 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. Requirement General Journal View transaction list Journal entry worksheet 1 General Ledger Date Dec 31 For transactions a-h, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger and trial balance as soon as you click record entry . 3 Note: Enter debits before credits. Trial Balance 4 Income Statement An analysis of WTI s insurance policies shows that $2,400 of coverage has expired. Account Title St Retained Earnings Debit Balance Sheet Credit Impact on income Requirement Unadjusted No. No. No. No. No. Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. No. No. Date Dec 31 Date Dec 31 Date Dec 31 Date Dec 31 Date Dec 31 Date General Journal Date Cash Debit General Ledger Prepaid insurance Debit Equipment Debit Professional library Debit Common stock Debit Credit Dividends Debit Trial Balance Credit Accounts payable Debit Credit Credit Credit Credit Credit Balance General Ledger Account 34,000 Balance Income Statement 12,000 Balance 35,000 Balance 80,000 Balance 26,000 Balance 10,000 Balance 50,000 No. No. No. No. No. St Retained Earnings No. No. Date Dec 31 Date Dec 31 Date Dec 31 Date Dec 31 Balance Sheet Date Dec 31 Date Date Dec 31 Teaching supplies Debit Prepaid rent Debit Impact on income Accumulated depreciation - Professional library Debit Credit Accumulated depreciation - Equipment Credit Debit Credit Credit Unearned training fees Debit Debit Credit Retained earnings Debit Credit Tuition fees earned Balance Credit 8,000 Balance 3,000 Balance 10,000 Balance 15,000 Balance 12,500 Balance 80,000 Balance 123,900 No. No. No. Date Dec 31 Date Dec 31 Date Dec 31 Training fees earned Debit Rent expense Debit Credit Credit Utilities expense Debit Credit Balance 40,000 Balance 33,000 Balance 6,400 < General Journal No. No. Date Dec 31 Date Dec 31 Trial Balance > Salaries expense Debit Credit Advertising expense Debit Credit Balance 50,000 Balance 6,000 Requirement Unadjusted General Journal Cash Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation - Equipment Accounts payable Unearned training fees Common stock Retained earnings Dividends General Ledger You may view either the unadjusted or adjusted trial balance by choosing from the drop-down box below. Your choice will determine the reported values on the financial statement tabs. Tuition fees earned Training fees earned Salaries expense Rent expense Advertising expense Utilities expense Total Trial Balance Account Title Income Statement St Retained Earnings Wells Technical Institute Trial Balance December 31, 2017 < General Ledger Balance Sheet Income Statement > $ $ Impact on income Debit 34,000 8.000 12,000 3,000 35,000 80,000 50,000 50,000 33,000 6,000 6,400 317,400 $ Credit 10,000 15,000 26,000 12,500 10,000 80,000 123,900 40,000 317,400 Requirement Unadjusted Revenues Expenses General Journal Net income General Ledger Trial Balance ********* Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection. Wells Technical Institute Income Statement For Year Ended December 31, 2019 $ Income Statement < Trial Balance ..….....…......….. 0 0 0 St Retained Earnings 0 0 0 0 0 0 0 0 0 0 Balance Sheet Impact on income St Retained Earnings > St Retained Earnings The unadjusted or adjusted balances will appear for each account, based on your selection. Requirement Unadjusted General Journal General Ledger Trial Balance Wells Technical Institute Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, December 31, 2019 Add: Net income Less: Dividends Retained earnings, December 31, 2019 Income Statement 80,000 (50,000) 80,000 Income Statement Balance Sheet Balance Sheet Impact on income Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Include all balance sheet accounts, even those with zero balances. Unadjusted Current assets Plant assets Current liabilities Assets Wells Technical Institute Balance Sheet December 31, 2019 Liabilities Equity $ $ $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ $ $ 0 0 0 0 0 0 Requirement Unadjusted General Journal Adjusting entry related to: a. Insurance b. Teaching supplies c. Depreciation - equipment d. Depreciation - library e. Training fees f. Tuition g. Salaries h. Rent General Ledger Trial Balance For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the drop-down.) Income statement Total impact on income due to adjustments Net income before adjustments Net income after adjustments Income Statement. St Retained Earnings < Balance Sheet Account affecting the: Balance Sheet Balance Sheet Impact on income > Impact on income Impact on net income $ 0 0 Show less A 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 available at year-end. c. Annual depreciation on the equipment is $13,200. d. Annual depreciation on the professional library is $7,200. 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 $2,500, and the client paid the first five months fees in advance. When the cash was received, the Unearned Training Fees account was credited. 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 tuition has been earned by WTI. 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. Requirement General Journal View transaction list Journal entry worksheet 1 General Ledger Date Dec 31 For transactions a-h, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger and trial balance as soon as you click record entry . 3 Note: Enter debits before credits. Trial Balance 4 Income Statement An analysis of WTI s insurance policies shows that $2,400 of coverage has expired. Account Title St Retained Earnings Debit Balance Sheet Credit Impact on income Requirement Unadjusted No. No. No. No. No. Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. No. No. Date Dec 31 Date Dec 31 Date Dec 31 Date Dec 31 Date Dec 31 Date General Journal Date Cash Debit General Ledger Prepaid insurance Debit Equipment Debit Professional library Debit Common stock Debit Credit Dividends Debit Trial Balance Credit Accounts payable Debit Credit Credit Credit Credit Credit Balance General Ledger Account 34,000 Balance Income Statement 12,000 Balance 35,000 Balance 80,000 Balance 26,000 Balance 10,000 Balance 50,000 No. No. No. No. No. St Retained Earnings No. No. Date Dec 31 Date Dec 31 Date Dec 31 Date Dec 31 Balance Sheet Date Dec 31 Date Date Dec 31 Teaching supplies Debit Prepaid rent Debit Impact on income Accumulated depreciation - Professional library Debit Credit Accumulated depreciation - Equipment Credit Debit Credit Credit Unearned training fees Debit Debit Credit Retained earnings Debit Credit Tuition fees earned Balance Credit 8,000 Balance 3,000 Balance 10,000 Balance 15,000 Balance 12,500 Balance 80,000 Balance 123,900 No. No. No. Date Dec 31 Date Dec 31 Date Dec 31 Training fees earned Debit Rent expense Debit Credit Credit Utilities expense Debit Credit Balance 40,000 Balance 33,000 Balance 6,400 < General Journal No. No. Date Dec 31 Date Dec 31 Trial Balance > Salaries expense Debit Credit Advertising expense Debit Credit Balance 50,000 Balance 6,000 Requirement Unadjusted General Journal Cash Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation - Equipment Accounts payable Unearned training fees Common stock Retained earnings Dividends General Ledger You may view either the unadjusted or adjusted trial balance by choosing from the drop-down box below. Your choice will determine the reported values on the financial statement tabs. Tuition fees earned Training fees earned Salaries expense Rent expense Advertising expense Utilities expense Total Trial Balance Account Title Income Statement St Retained Earnings Wells Technical Institute Trial Balance December 31, 2017 < General Ledger Balance Sheet Income Statement > $ $ Impact on income Debit 34,000 8.000 12,000 3,000 35,000 80,000 50,000 50,000 33,000 6,000 6,400 317,400 $ Credit 10,000 15,000 26,000 12,500 10,000 80,000 123,900 40,000 317,400 Requirement Unadjusted Revenues Expenses General Journal Net income General Ledger Trial Balance ********* Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection. Wells Technical Institute Income Statement For Year Ended December 31, 2019 $ Income Statement < Trial Balance ..….....…......….. 0 0 0 St Retained Earnings 0 0 0 0 0 0 0 0 0 0 Balance Sheet Impact on income St Retained Earnings > St Retained Earnings The unadjusted or adjusted balances will appear for each account, based on your selection. Requirement Unadjusted General Journal General Ledger Trial Balance Wells Technical Institute Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, December 31, 2019 Add: Net income Less: Dividends Retained earnings, December 31, 2019 Income Statement 80,000 (50,000) 80,000 Income Statement Balance Sheet Balance Sheet Impact on income Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Include all balance sheet accounts, even those with zero balances. Unadjusted Current assets Plant assets Current liabilities Assets Wells Technical Institute Balance Sheet December 31, 2019 Liabilities Equity $ $ $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ $ $ 0 0 0 0 0 0 Requirement Unadjusted General Journal Adjusting entry related to: a. Insurance b. Teaching supplies c. Depreciation - equipment d. Depreciation - library e. Training fees f. Tuition g. Salaries h. Rent General Ledger Trial Balance For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the drop-down.) Income statement Total impact on income due to adjustments Net income before adjustments Net income after adjustments Income Statement. St Retained Earnings < Balance Sheet Account affecting the: Balance Sheet Balance Sheet Impact on income > Impact on income Impact on net income $ 0 0 Show less A

Answer rating: 100% (QA)

Part A Journal Entry Work Sheet Date Account Title Debit Credit Dec31 Insurance Expense 2400 Prepaid Insurance 2400 Dec31 Teaching Supplies Expenses 5600 Teaching Supplies 5600 Dec31 Depreciation Expe... View the full answer