$115$

Acctg I and II

$116$

Chapter $3$ Adjusting Accounts for Financial Statements

The

Problem $3-3$A Preparing adjusting entries. adiusted trial baiance, and financial statements

P$1P2P3P4P5$

Additional Information

d$.$ Annual depreciation on the professional library is

e$.$ On September $1,$ WTI agreed to do five training courses for a courses will not begin until next year. The start immediately and finish before the end of the fill five training courses on September $1,$ and WTI credited Unearned Revenue.

$7.$ On October $15,$ WTI agreed to teach a four$-$month class $($beginning immediately$)$ for an executive with payment due at the end of the class. At December $31,$ $$7,500$ of the tuition revenue has been earned by WTI.

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 $31$

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

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.

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

Prepare Wells Technical Institute's income statement and statement of owner's equity for the year and prepare its balance sheet as of December $31.$ The T$.$ Wells, Capital account balance was $$90,000$ on