Financial statements and journal entries for Wells Technical Institute

UNIVERSIDAD DEL TURABO
ESCUELA DE NEGOCIOS Y EMPRESARISMO

GURABO, PR
ACCO 500 - Financial Accounting

Libro: Financial Accounting - Information for Decisions
Asignacin: Problema 3-2A
Nlida Ramos Molina

S00598030
Problem: 3-2A
Page
General Journal
WELLS TECHNICAL INSTITUTE
Date
Dec.
Description
31
Adjustment (a)
Insurance Expense
Debit
Credit
2,400
Prepaid Insurance
2,400
To record the insurance expired.
31
Adjustment (b)
Teaching Supplies Expenses
5,200
Teaching Supplies
5,200
To record supplies used $8,000 -$2,800
31
Adjustment (c)
Depreciation Expense Equipment
13,200
Accumulated Depreciation Equipment
13,200
To record equipment depreciation.
31
Adjustment (d)
Depreciation Expense Professional Library
7,200
Accumulated depreciation Professional Library
7,200
To record professional library depreciation.
31
Adjustment (e)
Unearned Training fees
5,000
Training Fees Earned
5,000
To record 2 months training fees collected in advanced.
31
Adjustment (f)
Accounts Receivable
7,500
Tuition Fee Earned
7,500
To record tuition earned $3,000 x 2 1/2 months.
31
Adjustment (g)
Salaries Expense
400
Salaries Payable
400
To record accrued salaries 2 days x $100 x 2 employees.
31
Adjustment (h)
Prepaid Rent
Rent Expense
To record prepaid rent.
3,000
3,000

Income Statement
For Year Ended December 31, 2008
Revenues
Tuition fees earned
$131,400.00
Training fees earned
45,000
Total revenues
$176,400.00
Expenses
Depreciation expense - Professional library
7,200
Depreciation expense - Equipment
13,200
Salaries expense
50,400
Insurance expense
2,400
Rent expense
36,000
Teaching supplies expense
5,200
Advertising expense
6,000
Utilities expenses
6,400
Total expenses
126,800
Net income
$49,600.00

Statement of Retained Earnings
For Year Ended December 31, 2008
Retained earnings, December 31, 2007
10,000
Plus: Net income
49,600
59,600
Less: Dividends
Retained earnings, December 31, 2008
50,000
$9,600.00

Balance Sheet
December 31, 2008
Assets
Cash
$34,000.00
Accounts receivable
7,500
Teaching supplies
2,800
Prepaid insurance
9,600
Professional library
$35,000.00
Accumulated depreciation - Professional

library
Equipment
(17,200)
17,800
80,000
Accumulated depreciation - Equipment

Total assets
(28,200)
51,800
$123,500.00
Liabilities
Accounts payable
$26,000.00
Salaries payable
400
Unearned training fees

Total liabilities
7,500
33,900
Equity
Common stock
Retained earnings
Total liabilities and equity
80,000
9,600
$123,500.00

Work Sheet
December 31, 2008
Account Titles
Unadjusted Trial
Balance
Dr.
Cash
Accounts receivable
Adjustment
Cr.
Dr.
Adjusted Trial
Balance
Cr.
Dr.
34,000
0
(f) 7,500
Cr.
Income
Statement
Dr.
Cr.
Balance Sheet
Dr.
34,000
34,000
7,500
7,500
Teaching supplies
8,000
(b)
5,200
2,800
2,800
Prepaid insurance
12,000
(a)
2,400
9,600
9,600
3,000
(h)
3,000
Prepaid rent
Professional library
35,000
Accumulated depreciation
- Professional library
Equipment
35,000
10,000
(d)
7,200
80,000
17,200
17,200
80,000
Accumulated depreciation
- Equipment
15,000
Accounts Payable
26,000
Salaries payable
Cr.
(c) 13,200
(g)
400
80,000
28,200
28,200
26,000
26,000
400
400
7,500
7,500
Unearned training fees
12,500 (e) 5,000
Common stock
80,000
80,000
80,000
Retained earnings
10,000
10,000
9,600
Dividends
50,000
Tuition fees earned

Training fees earned
50,000
123,900
(f)
7,500
131,400
131,400
40,000
(e)
5,000
45,000
45,000
Depreciation expense Professional library
(d) 7,200
7,200
7,200
Depreciation expense Equipment
(c) 13,200
13,200
13,200
(g)
400
50,400
50,400
(a) 2,400
2,400
2,400
33,000
(h) 3,000
36,000
36,000
(b) 5,200
5,200
5,200
Salaries expense
Insurance expense
Rent expense
Teaching supplies
expense
50,000
Advertising expense
6,000
6,000
6,000
Utilities expense
6,400
6,400
6,400
Totals
Net Income
Totals
317,400 317,400
43,900
43,900
345,700 345,700 126,800 176,400

49,600
176,400 176,400
133,900 169,900
35,000
169,900 169,900

Financial statements and journal entries for Wells Technical Institute

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UNIVERSIDAD DEL TURABO

ESCUELA DE NEGOCIOS Y EMPRESARISMO

ACCO 500 - Financial Accounting

Nlida Ramos Molina

To record the insurance expired.

Teaching Supplies Expenses

To record supplies used $8,000 -$2,800

Depreciation Expense Equipment

Accumulated Depreciation Equipment

To record equipment depreciation.

Depreciation Expense Professional Library

Accumulated depreciation Professional Library

To record professional library depreciation.

Unearned Training fees

Training Fees Earned

To record 2 months training fees collected in advanced.

Tuition Fee Earned

To record tuition earned $3,000 x 2 1/2 months.

To record accrued salaries 2 days x $100 x 2 employees.

WELLS TECHNICAL INSTITUTE

Training fees earned

Depreciation expense - Equipment

Teaching supplies expense

WELLS TECHNICAL INSTITUTE

Plus: Net income

WELLS TECHNICAL INSTITUTE

Accumulated depreciation - Professional

Accumulated depreciation - Equipment

Unearned training fees

WELLS TECHNICAL INSTITUTE

Unearned training fees

12,500 (e) 5,000

Tuition fees earned

Depreciation expense Professional library

Depreciation expense Equipment

345,700 345,700 126,800 176,400

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