watson technical institute (wti), a school owned by tom watson,


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, 2005, 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, 2005, follow.

Additional Information Items

a. An analysis of the school’s insurance policies shows that $3,000 of coverage has expired.

b. An inventory count shows that teaching supplies costing $2,600 are available at year-end 2005.

c. Annual depreciation on the equipment is $12,000.

d. Annual depreciation on the professional library is $6,000.

e. On November 1, the school agreed to do a special six-month course (starting immediately) for a

client. The contract calls for a monthly fee of $2,200, 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 2006.

f. On October 15, the school 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 services are being

provided as agreed, and no payment has yet been received.

g. The school’s two employees are paid weekly. As of the end of the year, two days’ wages have

accrued at the rate of $100 per day for each employee.

h. The balance in the Prepaid Rent account represents rent for December.


1. Prepare T-accounts (representing the ledger) with balances from the unadjusted trial balance.

2. Prepare the necessary adjusting journal entries for items a through h and post them to the

T-accounts. Assume that adjusting entries are made only at year-end.

3. Update balances in the T-accounts for the adjusting entries and prepare an adjusted trial balance.

4. Prepare Watson Technical Institute’s income statement and statement of owner’s equity for the

year 2005 and prepare its balance sheet as of December 31, 2005.

Check (2e) Cr.Training Fees Earned,

$4,400; (2f ) Cr.Tuition Fees Earned,

$7,500; (3) Adj.Trial balance totals,

$301,500; (4) Net income, $38,500;

Ending T.Watson, Capital $62,100

Cash Debit 26,000

Accounts receivable 0

Teaching supplies Debit 10,000

Prepaid insurance Debit 15,000

Prepaid rent Debit 2,000

Professional library Debit 30,000

Accumulated depreciation—Professional library Credit 9,000

Equipment Debit 70,000

Accumulated depreciation—Equipment credit 16,000

Accounts payable Credit 36,000

Salaries payable 0

Unearned training fees credit 16,000

Tuition fees earned credit 102,000

Training fees earned credit 38,000

Depreciation expense—Professional library 0

Depreciation expense—Equipment 0

Salaries expense Debit 48,000

Insurance expense 0

Rent expense debit 22,000

Teaching supplies expense 0

Advertising expense Debit 7,000

Utilities expense Debit 5,600

T. Watson, Capital Credit 63,600

T. Watson, Withdrawals Debit 40,000

Totals 275,600


Adjusting Entries, T-Accounts, Adjusted Trial Balance, Income Statement, Balance Sheet.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Australia Assessments
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Finance/Acc related
Good work.
Customer 460073, July 9th, 2022
Always proofread before submitting to eliminate minor errors.
Customer 462495, April 3rd, 2022
This task was well written Looking forward to your future contribution.
Customer 463463, November 11th, 2022
Accounting & Finance
Good blog design and content.
Customer 452441, April 15th, 2022
Human Resources Management (HRM)
Good work.
Customer 463125, July 4th, 2022
Customer 456821, October 4th, 2022
Although I did not receive the paper on time, the revision came back beautifully written.
Customer 452455, June 28th, 2023
Entertainment & Gaming
Great work.
Customer 452441, April 29th, 2022
The writer did a phenomenal job with the Research Report #1: Data Breach Incident Analysis & Report. All expectations were met and exceeded! Thank you for delivering an amazing product and a HUGE thank you to the customer service department for sending me an email to let me know the paper was checked to quality assurance team to ensure the paper was within standards of the instructions.
Customer 452455, February 3rd, 2023
Social Work and Human Services
Good work.
Customer 462793, July 8th, 2022
Business and administrative studies
Good analysis and computation,
Customer 463053, July 9th, 2022
Religious studies
Thank you very much. I am going to keep using this service.
Customer 454195, March 30th, 2020
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat