Identifying Adjusting Entries With Explanations

Identifying Adjusting Entries With Explanations Lo C3 P1

Problem 3 1a Identifying Adjusting Entries With Explanations Lo C3 P1

Problem 3-1A Identifying adjusting entries with explanations LO C3, P1 For each of the following entries, enter the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.) A. To record receipt of unearned revenue. B. To record this period's earning of prior unearned revenue. C. To record payment of an accrued expense. D. To record receipt of an accrued revenue. E. To record an accrued expense. F. To record an accrued revenue. G. To record this period's use of a prepaid expense. H. To record payment of a prepaid expense. I. To record this period's depreciation expense. lanation Journal Entries Debit Credit Interest Expense 1,000 Interest Payable 1,000 Depreciation Expense 4,000 Accumulated Depreciation 4,000 Unearned Professional Fees 3,000 Professional Fees Earned 3,000 Insurance Expense 4,200 Prepaid Insurance 4,200 Salaries Payable 1,400 Cash 1,400 Prepaid Rent 4,500 Cash 4,500 Salaries Expense 6,000 Salaries Payable 6,000 Interest Receivable 5,000 Interest Revenue 5,000 Cash 9,000 Accounts Receivable (from consulting) 9,000 Cash 7,500 Unearned Professional Fees 7,500 Cash 2,000 Interest Receivable 2,000 Rent Expense 2,000 Prepaid Rent 2,000 Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO A1, P1, P2, P3 [The following information applies to the questions displayed below.] 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. Its unadjusted trial balance as of December 31, 2013, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2013, follow. 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. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2013 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 T. Wells, Capital 90,000 T. Wells, Withdrawals 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 Problem 3-3A Part 1 Required: 1. Prepare the necessary adjusting journal entries for items a through h . Assume that adjusting entries a re made only at year-end. Adjusting entries (all dated Dec. 31, 2013). 2. Prepare an adjusted trial balance. WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31, 2013 Debit Credit Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation—Professional library Equipment Accumulated depreciation—Equipment Accounts payable Salaries payable Unearned training fees T. Wells, Capital T. Wells, Withdrawals Tuition fees earned Training fees earned Depreciation expense—Professional library Depreciation expense—Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals Interpersonal Relationships Project There are six well defined stages in interpersonal relationships, including: Contact: the initial stage of the relationship that includes a perceptual stage where the individuals simply become aware of each other, and an interactional stage that includes the exchange of basic information and where each individual decides if a relationship is worth pursuing. Involvement: increased contact which allows the individuals to learn more about each other, a sense of being connected begins to develop and the individuals begin to spend more time together doing things that suggest an intensification of the relationship. Intimacy: Each individual feels a sense of commitment to the other and some type of defined relationship, usually divided into two stages—the interpersonal commitment which is a private commitment and the social bonding which is more public. Both individuals identify individually as part of a unit or pair, and the public also identifies them as such. Deterioration: the weakening of the bonds of intimacy due to dissatisfaction that ultimately leads to withdrawal from contact, decreasing self-disclosure and increased deception. This stage may or may not include arguing and quarreling. Repair: one or both individuals make attempts to analyze what is wrong and try to find ways to solve the problems by changing own behaviors or changing the expectations of the other’s behaviors. The goal of this stage is a return to the intimacy stage. This stage may be skipped. Dissolution: completely severing the bonds that held the relationship together in the intimacy stage. Watch the 2006 movie "The Break-up." Watch for signs and examples of the six stages of a relationship. Keep in mind that although the above components are being demonstrated and studied with a romantic relationship in this particular move, the same processes occur in other types of relationships (friendships, work relationships, etc.) as well. Write a short, 1 1/2 to 2 page, double spaced essay addressing all six of the stages of interpersonal relationships. Remember that although the above components are being demonstrated and studied with a romantic relationship in this particular move, the same processes occur in other types of relationships (friendships, work relationships, etc.) as well. Submit the essay in the corresponding drop box in Assignments.