Angela Daily
2013-09-12 15:06:59 UTC
Additional Information Items
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 2013.
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. The fee for the sixth month will be recorded when it is collected in 2014.
f.On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,000 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.
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UNADJUSTED TRIAL BALANCE OF DEC 31 2013
Cash $ 34,000
Accounts receivable 0 (dr)
Teaching supplies 8,000 (dr)
Prepaid insurance 12,000 (dr)
Prepaid rent 3,000 (dr)
Professional library 35,000 (dr)
Accumulated depreciation—Professional library 10,000 (cr)
Equipment 80,000 (dr)
Accumulated depreciation—Equipment 15,000 (cr)
Accounts payable 26,000 (cr)
Salaries payable 0 (cr)
Unearned training fees 12,500 (cr)
Common stock 10,000 (cr)
Retained earnings 80,000 (cr)
Dividends 50,000 (dr)
Tuition fees earned 123,900 (cr)
Training fees earned 40,000 (cr)
Depreciation expense—Professional library 0 (dr)
Depreciation expense—Equipment 0 (dr)
Salaries expense 50,000 (dr)
Insurance expense 0 (dr)
Rent expense 33,000 (dr)
Teaching supplies expense 0 (dr)
Advertising expense 6,000 (dr)
Utilities expense 6,400 (dr)
total debit = 317,400
total credit = 317,400
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GENERAL JORNAL
Dec 31 Insurance expense 2,400
Prepaid insurance 2,400
Dec 31 Teaching supplies expense 5,200
Teaching supplies 5,200
Dec 31 Depreciation expense—Equipment 13,200
Accumulated depreciation—Equipment 13,200
Dec 31 Depreciation expense—Professional library 7,200
Accumulated depreciation—Professional library 7,200
Dec 31 Unearned training fees 5,000
Training fees earned 5,000
Dec 31 Accounts receivable 7,500
Tuition fees earned 7,500
Dec 31 Salaries expense 400
Salaries payable 400
Dec 31 Rent expense 3,000
Prepaid rent 3,000
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LINK FOR ADJUSTED TRIAL BALANCE OF DEC 31, 2013
http://tinypic.com/view.php?pic=kcj6e8&s=5#.UjI3grPn-00
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INCOME STATEMENTDEC 31 2013 + STATEMENT OF RETAINED EARNINGS FOR YEAR ENDED DEC 31 2013
http://tinypic.com/view.php?pic=2f0esdh&s=5#.UjI4obPn-00
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BALANCE SHEET DEC 31 2013 [NEED HELP COMPLETING IT]
http://tinypic.com/view.php?pic=2cypjyh&s=5#.UjI1V7Pn-00
There's links to the pictures because I ran out of characters
In the balance sheet I'm having trouble with the R/E I already found both the ending and beginning r/e but when I plug either of those numbers in it doesn't work