{"id":23327,"date":"2022-01-06T19:30:39","date_gmt":"2022-01-06T19:30:39","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/watson-technical-institute-wti-a-school-owned-by-tom-watson\/"},"modified":"2022-01-06T19:30:39","modified_gmt":"2022-01-06T19:30:39","slug":"watson-technical-institute-wti-a-school-owned-by-tom-watson","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/watson-technical-institute-wti-a-school-owned-by-tom-watson\/","title":{"rendered":"Watson technical institute (wti), a school owned by tom watson,"},"content":{"rendered":"
\n

Watson Technical Institute (WTI), a school owned by Tom Watson, 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, 2011, 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, 2011, follow.
\nAdditional Information Items
\na. \tAn analysis of WTI’s insurance policies shows that $2,807 of coverage has expired.
\nb. \tAn inventory count shows that teaching supplies costing $2,433 are available at year-end 2011.
\nc. \tAnnual depreciation on the equipment is $11,227.
\nd. \tAnnual depreciation on the professional library is $5,614.
\ne. \t
\n
\nOn November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,700, 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 2012.
\nf. \t
\n
\nOn October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,819 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.)
\ng. \t
\n
\nWTI’s two employees are paid weekly. As of the end of the year, two days’ salaries have accrued at the rate of $100 per day for each employee.
\nh. \tThe balance in the Prepaid Rent account represents rent for December.
\n
\nWATSON TECHNICAL INSTITUTE
\nUnadjusted Trial Balance
\nDecember 31, 2011
\n\t Debit \t Credit
\n Cash \t$ \t26,340 \t\t
\n Accounts receivable \t\t0 \t\t
\n Teaching supplies \t\t10,129 \t\t
\n Prepaid insurance \t\t15,197 \t\t
\n Prepaid rent \t\t2,027 \t\t
\n Professional library \t\t30,391 \t\t
\n Accumulated depreciation\u2014Professional library \t\t\t$ \t9,119
\n Equipment \t\t70,903 \t\t
\n Accumulated depreciation\u2014Equipment \t\t\t\t16,210
\n Accounts payable \t\t\t\t 34,112
\n Salaries payable \t\t\t\t0
\n Unearned training fees \t\t\t\t13,500
\n T. Watson, Capital \t\t\t\t64,431
\n T. Watson, Withdrawals \t\t40,523 \t\t
\n Tuition fees earned \t\t\t\t103,332
\n Training fees earned \t\t\t\t38,496
\n Depreciation expense\u2014Professional library \t\t0 \t\t
\n Depreciation expense\u2014Equipment \t\t0 \t\t
\n Salaries expense \t\t48,628 \t\t
\n Insurance expense \t\t0 \t\t
\n Rent expense \t\t22,297 \t\t
\n Teaching supplies expense \t\t0 \t\t
\n Advertising expense \t\t7,092 \t\t
\n Utilities expense \t\t5,673 \t\t
\n\t\t\t\t
\n Totals \t$ \t279,200 \t$ \t279,200
\n\t\t\t\t
\n
\n
\n 4.
\nvalue:
\n17.00 points
\n
\nRequired:
\n2. \t
\n
\nPrepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end. (Round your answer to nearest dollar amount. Omit the “$” sign in your response.)
\n
\nAdjusting entries (all dated Dec. 31, 2011).
\n
\n\tGeneral Journal \tDebit \tCredit
\na. \t \t \t
\n\t \t\t
\n\t \t\t
\nb. \t \t \t
\n\t \t\t
\n\t \t\t
\nc. \t \t \t
\n\t \t\t
\n\t \t\t
\nd. \t \t \t
\n\t \t\t
\n\t \t\t
\ne. \t \t \t
\n\t \t\t
\n\t \t\t
\nf. \t \t \t
\n\t \t\t
\n\t \t\t
\ng. \t \t \t
\n\t \t\t
\n\t \t\t
\nh. \t \t \t
\n\t \t\t
\neBook Links (4)references
\n
\n
\n 5.
\nvalue:
\n16.00 points
\n
\n3.1 \t
\n
\nPost the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. (Record the transactions in the given order. Round your answers to the nearest dollar amount. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)
\n
\nCash
\n\t \t
\n Unadj. bal. \t \t\t
\n
\nAccounts Receivable
\n\t \t
\n Unadj. bal. \t \t\t
\n \t \t\t
\n\t
\n Adj. bal. \t \t\t
\n\t\t \t\t
\n
\nTeaching Supplies
\n\t \t
\n Unadj. bal. \t \t\t
\n\t\t \t
\n\t
\n Adj. bal. \t \t\t
\n\t\t \t\t
\n
\nPrepaid Insurance
\n\t \t
\n Unadj. bal. \t \t\t
\n\t\t \t
\n\t
\n Adj. bal. \t \t\t
\n\t\t \t\t
\n
\nPrepaid Rent
\n\t \t
\n Unadj. bal. \t \t\t
\n\t\t \t
\n\t
\n Adj. bal. \t \t\t
\n\t\t \t\t
\n
\nProfessional Library
\n\t \t
\n Unadj. bal. \t \t\t
\n
\nAccumulated Depreciation\u2014Professional library
\n\t \t
\n\t\t Unadj. bal. \t
\n\t\t \t
\n\t
\n Adj. bal. \t\t\t
\n\t\t \t\t
\n
\nEquipment
\n\t \t
\n Unadj. Bal. \t \t\t
\n
\nAccumulated Depreciation\u2014Equipment
\n\t \t
\n\t\t Unadj. bal. \t
\n\t\t \t
\n\t
\n\t\t Adj. bal. \t
\n\t\t \t\t
\n
\nAccounts Payable
\n\t \t
\n\t\t Unadj. bal. \t
\n
\nSalaries Payable
\n\t \t
\n\t\t Unadj. bal. \t
\n\t\t \t
\n\t
\n\t\t Adj. bal. \t
\n\t\t \t\t
\n
\nUnearned Training Fees
\n\t \t
\n\t\t Unadj. bal. \t
\n \t \t\t
\n\t
\n\t\t Adj. bal. \t
\n\t\t \t\t
\n
\nT. Watson, Capital
\n\t \t
\n\t\t Unadj. bal. \t
\n
\nT. Watson, Withdrawals
\n\t \t
\n Unadj. bal. \t \t\t
\n
\nTuition Fees Earned
\n\t \t
\n\t\t Unadj. bal. \t
\n\t\t \t
\n\t
\n\t\t Adj. bal. \t
\n\t\t \t\t
\n
\nTraining Fees Earned
\n\t \t
\n\t\t Unadj. bal. \t
\n\t\t \t
\n\t
\n\t\t Adj. bal. \t
\n\t\t \t\t
\n
\nDepreciation Expense\u2014Professional Library
\n\t \t
\n Unadj. bal. \t \t\t
\n \t \t\t
\n\t
\n Adj. bal. \t \t\t
\n\t\t \t\t
\n
\nDepreciation Expense\u2014Equipment
\n\t \t
\n Unadj. bal. \t \t \t
\n \t \t\t
\n\t
\n Adj. bal. \t \t\t
\n\t\t \t\t
\n
\nSalaries Expense
\n\t \t
\n Unadj. bal. \t \t\t
\n \t \t\t
\n\t
\n Adj. bal. \t \t\t
\n\t\t \t\t
\n
\nInsurance Expense
\n\t \t
\n Unadj. bal. \t \t\t
\n \t \t\t
\n\t
\n Adj. bal. \t \t\t
\n\t\t \t\t
\n
\nRent Expense
\n\t \t
\n Unadj. bal. \t \t\t
\n \t \t\t
\n\t
\n Adj. bal. \t \t\t
\n\t\t \t\t
\n
\nTeaching Supplies Expense
\n\t \t
\n Unadj. bal. \t \t\t
\n \t \t\t
\n\t
\n Adj. bal. \t \t\t
\n\t\t \t\t
\n
\nAdvertising Expense
\n\t \t
\n Unadj. bal. \t \t\t
\n
\nUtilities Expense
\n\t \t
\n Unadj. bal. \t \t\t
\n
\n3.2 \t
\n
\nPrepare an adjusted trial balance. (The items in the Trial Balance should be grouped as follows: Assets and Liabilities (in order of their liquidity) then Equity, Revenues, and Expenses. Leave no cells blank – be certain to enter “0” wherever required. Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)
\n
\nWatson Technical Institute
\nAdjusted Trial Balance
\nDecember 31, 2011
\n\t Debit \t Credit
\n \t$ \t
\n \t \t
\n \t \t
\n \t \t
\n \t \t
\n \t \t
\n \t\t$
\n \t \t
\n \t\t
\n \t\t
\n \t\t
\n \t\t
\n \t\t
\n \t \t
\n \t\t
\n \t\t
\n \t \t
\n \t \t
\n \t \t
\n \t \t
\n \t \t
\n \t \t
\n \t \t
\n \t \t
\n\t\t
\n Totals \t$ \t$
\n\t\t
\neBook Links (4)references
\n
\n
\n 6.
\nvalue:
\n16.00 points
\n
\n4.1 \t
\n
\nPrepare Watson technical institute’s income statement for the year 2011. (Round your answer to nearest dollar amount. Input all amounts as positive values. Omit the “$” sign in your response.)
\n
\nWATSON TECHNICAL INSTITUTE
\nIncome Statement
\nFor Year Ended December 31, 2011
\n Revenues \t\t
\n \t$ \t
\n \t
\n
\n
\n\t
\n \t\t
\n Total revenues \t\t$
\n Expenses \t\t
\n \t \t
\n \t \t
\n \t \t
\n \t \t
\n \t \t
\n \t \t
\n \t \t
\n \t
\n
\n
\n\t
\n \t\t
\n Total expenses \t\t
\n \t\t
\n \t\t
\n
\n$
\n \t\t
\n
\n4.2 \t
\n
\nPrepare Watson technical institute’s statement of owner’s equity for the year 2011. (Round your answer to nearest dollar amount. Input all amounts as positive values. Omit the “$” sign in your response.)
\n
\nWATSON TECHNICAL INSTITUTE
\nStatement of Owner’s Equity
\nFor Year Ended December 31, 2011
\n \t$
\n \t
\n\t
\n\t
\n \t
\n \t
\n \t$
\n \t
\n
\n4.3 \t
\n
\nPrepare Watson technical institute’s balance sheet as of December 31, 2011. (Round your answer to nearest dollar amount. Be sure to list the assets and liabilities in order of their liquidity. Amounts to be deducted should be indicated by a minus sign. Omit the “$” sign in your response.)
\n
\nWATSON TECHNICAL INSTITUTE
\nBalance Sheet
\nDecember 31, 2011
\n Assets \t\t
\n \t\t$
\n \t\t
\n \t\t
\n \t\t
\n \t$ \t
\n \t \t
\n\t\t
\n \t \t
\n \t \t
\n\t\t
\n Total Assets \t\t$
\n\t\t
\n Liabilities \t\t
\n \t\t$
\n \t\t
\n \t\t
\n\t\t
\n Total Liabilities \t\t
\n Equity \t\t \n \t\t<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Watson Technical Institute (WTI), a school owned by Tom Watson, 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, 2011, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-23327","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/23327","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=23327"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/23327\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=23327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=23327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=23327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}