a. An analysis of WTI’s insurance policies shows that $3,000 of coverage has expired. b. An inventory count shows that…


a. An partition of WTI's security policies shows that $3,000 of coverage has expired. b. An list estimate shows that instruction produce costing $2,600 are suited at year-end 2011. c. Annual diminution on the equipment is $12,000. d. Annual diminution on the negotiative library is $6,000. e. On November 1, WTI agreed to do a extraordinary six-month line (starting instantly) for a client. The curtail calls for a monthly fee of $2,200, and the client compensated the primitive five months' fees in action. When the currency was current, the Unearned Trailing Fees acestimate was credited. The fee for the sixth month accomplish be recorded when it is unmoved in 2012. f. On October 15, WTI agreed to educate a four-month collocate (prelude instantly) for an particular for $3,000 discipline per month payable at the end of the collocate. The collocate launched on October 15, but no liquidation has yet been current. (WTI's accruals are applied to the unswerving half-month; for copy, October recognizes one-half month accrual.) g. WTI's two employees are compensated weekly. As of the end of the year, two days' salaries feel accrued at the reprove of $100 per day for each employee. h. The counterpoise in the Precompensated Schism acestimate represents schism for December. WATSON TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2011 Debit Credit Currency $ 26,000 Accounts receivable 0 Instruction produce 10,000 Precompensated security 15,000 Precompensated schism 2,000 Negotiative library 30,000 Accumulated diminution—Professional library $ 9,000 Equipment 70,000 Accumulated diminution—Equipment 16,000 Accounts payable 36,000 Salaries payable 0 Unearned trailing fees 11,000 T. Watson, Capital 63,600 T. Watson, Withdrawals 40,000 Discipline fees earned 102,000 Trailing fees earned 38,000 Diminution price—Professional library 0 Diminution price—Equipment 0 Salaries price 48,000 Security price 0 Schism price 22,000 Instruction produce price 0 Advertising price 7,000 Utilities price 5,600 Totals $ 275,600 $ 275,600 Prepare the needful adjusting life entries for items a through h. Assume that adjusting entries are made simply at year-end. (Omit the "$" memorial in your tally.) Adjusting entries (all dated Dec. 31, 2011). General Life Debit Credit