Question

December 31 Debit Credit Cash $ 27,396 Accounts receivable 0 Teaching supplies 10,536 Prepaid insurance 15,806 Prepaid rent 2,108 Professional library 31,610 Accumulated depreciation-Professional library $ 9,484 Equipment 101,000 Accumulated depreciation-Equipment 16,861 Accounts payable 23,000 Salaries payable 0 Unearned revenue 14,500 Common stock 23,287 Retained earnings 83,000 Dividends 42,149 Tuition revenue 107,477 Training revenue 40,040 Depreciation expense-Professional library 0 Depreciation expense-Equipment 0 Salaries expense 50,579 Insurance expense 0 Rent expense 23,188 Teaching supplies expense 0 Advertising expense 7,376 Utilities expense 5,901 Totals $ 317,649 $ 317,649 3-a. Prepare Wells Technical Institute's income statement for the year. 3-b. Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings accou $83,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31.

          December 31
Debit
Credit
Cash
$ 27,396
Accounts receivable
0
Teaching supplies
10,536
Prepaid insurance
15,806
Prepaid rent
2,108
Professional library
31,610
Accumulated depreciation-Professional library
$ 9,484
Equipment
101,000
Accumulated depreciation-Equipment
16,861
Accounts payable
23,000
Salaries payable
0
Unearned revenue
14,500
Common stock
23,287
Retained earnings
83,000
Dividends
42,149
Tuition revenue
107,477
Training revenue
40,040
Depreciation expense-Professional library
0
Depreciation expense-Equipment
0
Salaries expense
50,579
Insurance expense
0
Rent expense
23,188
Teaching supplies expense
0
Advertising expense
7,376
Utilities expense
5,901
Totals
$ 317,649 $ 317,649
3-a. Prepare Wells Technical Institute's income statement for the year.
3-b. Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings accou
$83,000 on December 31 of the prior year.
3-c. Prepare Wells Technical Institute's balance sheet as of December 31.

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december 31 debit credit cash 27396 accounts receivable 0 teaching supplies 10536 prepaid insurance 15806 prepaid rent 2108 professional library 31610 accumulated depreciation professional l 03236

Added by Mohamed N.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

09/14/2023

Step 1

The income statement shows revenues and expenses for the period. From the trial balance, we identify the revenue accounts (Tuition revenue, Training revenue) and the expense accounts (Depreciation expense-Professional library, Depreciation expense-Equipment, Show more…

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December 31 Debit Credit Cash $ 27,396 Accounts receivable 0 Teaching supplies 10,536 Prepaid insurance 15,806 Prepaid rent 2,108 Professional library 31,610 Accumulated depreciation-Professional library $ 9,484 Equipment 101,000 Accumulated depreciation-Equipment 16,861 Accounts payable 23,000 Salaries payable 0 Unearned revenue 14,500 Common stock 23,287 Retained earnings 83,000 Dividends 42,149 Tuition revenue 107,477 Training revenue 40,040 Depreciation expense-Professional library 0 Depreciation expense-Equipment 0 Salaries expense 50,579 Insurance expense 0 Rent expense 23,188 Teaching supplies expense 0 Advertising expense 7,376 Utilities expense 5,901 Totals $ 317,649 $ 317,649 3-a. Prepare Wells Technical Institute's income statement for the year. 3-b. Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings accou $83,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31.

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Transcript

00:01 So we'll prepare the necessary journal, adjusted journal entries for items.

00:08 First thing, expense insurance, expired insurance.

00:22 Wti has 16 ,039 in prepaid insurance and 3 ,864 of corporate has expired.

00:32 To recover the insurance expense, we need to calculate the amount that has expired.

00:36 16 ,339 minus 3 ,864 would be 12 ,465.

00:52 So adjusted entry would be insurance expense, 308 before that prepaid insurance, 3 ,864.

01:22 And next is teaching supplies.

01:34 Teaching supplies cost 3 ,349 are available at year end.

01:40 Adjusted entry would be teaching supply expense, 3 ,349, ready -to -teaching supply, 3 ,349.

02:18 Next is equipment depreciation.

02:32 Annual depreciation on equipment is 15 ,459.

02:38 So adjusted entry would be depreciation expense, expense equipment is 15 ,458.

03:03 So accumulated depreciation equipment.

03:20 Depreciation expense equipment credited accumulated depreciation, 15 ,458.

03:31 Next is professional library depreciation.

03:50 Annual depreciation on the professional library is $7 ,739.

03:56 So adjusted entry would be depreciation expense for personal library, 7 ,739.

04:26 Accumulated depreciation of professional library, 7 ,739.

04:57 Next is unarmed revenue.

05:08 Wti received 12 ,545 training courses.

05:13 As of september 25, two courses have started in armed revenue, 2 ,500...

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