Respuesta :
Answer:
A
Dr. Insurance Expense.....3335
Cr. Prepaid Insurance.............3335
Being Insurance policies expired during the period
B
Dr. Teaching supplies expense....( 10,420 – 2,891).....7,529
Cr. Teaching Supplies ...............................................................7,529
Being teaching supplies made for the period
C
Dr. Depreciation Expense - Equipment............13,342
Cr. Accumulated Depreciation - Equipment......................13,342
Being Equipment Depreciation expense for the period
D
Dr. Depreciation Expense – Professional Library....6,671
Cr. Accumulated Depreciation – Professional Library.........6,671
Being Depreciation of Professional Library for the period
E
Dr. Unearned Training Fees (2 months * 3000) ...6,000
Cr. Training fees earned.................................................6,000
Being recognition of revenue against prepaid income for Nov and Dec
F
Dr. Tuition Receivable (2.5 months x 3,561) ...8,902.5
Cr. Tuition earned ...........................................................8,902.5
Being recognition of Tuition revenue against Account receivable for Oct 15 to Dec
G
Dr. Wages Payable......................400
Cr. Accrued Wages...........................400
Being Wages Accrued for 2 workers for 2 days as at Dec 31st at the rate $100 per day
Explanation:
Required:
1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.
Additional Information Items
1. An analysis of WTI's insurance policies shows that $3,335 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,891 are available at year-end 2017.
3. Annual depreciation on the equipment is $13,342.
4. Annual depreciation on the professional library is $6,671.
5. 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 $3,000, 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 2018.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,561 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.)
7. 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.
JOURNAL ENTRIES
A
Dr. Insurance Expense.....3335
Cr. Prepaid Insurance.............3335
Being Insurance policies expired during the period
B
Dr. Teaching supplies expense....( 10,420 – 2,891).....7,529
Cr. Teaching Supplies ...............................................................7,529
Being teaching supplies made for the period
C
Dr. Depreciation Expense - Equipment............13,342
Cr. Accumulated Depreciation - Equipment......................13,342
Being Equipment Depreciation expense for the period
D
Dr. Depreciation Expense – Professional Library....6,671
Cr. Accumulated Depreciation – Professional Library.........6,671
Being Depreciation of Professional Library for the period
E
Dr. Unearned Training Fees (2 months * 3000) ...6,000
Cr. Training fees earned.................................................6,000
Being recognition of revenue against prepaid income for Nov and Dec
F
Dr. Tuition Receivable (2.5 months x 3,561) ...8,902.5
Cr. Tuition earned ...........................................................8,902.5
Being recognition of Tuition revenue against Account receivable for Oct 15 to Dec
G
Dr. Wages Payable......................400
Cr. Accrued Wages...........................400
Being Wages Accrued for 2 workers for 2 days as at Dec 31st at the rate $100 per day
