3 Part 2 of 3 Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO A1, P1, P2, P3 (The following information applies to the questions displayed below) Wells Technical Institute (WTI), a school owned by Tristana Wells, 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, 2017 follows. WT Initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through that require adjusting entries on December 31, 2017, follow. Additional Information Items 10 points Beferences a. An analysis of WTIS Insurance policies shows that $3,600 of coverage has expired. b. An inventory count shows that teaching supplies costing $3.120 are available at year-end 2017 c. Annual depreciation on the equipment is $14.400 d. Annual depreciation on the professional Ibrary is $7,200 e On November 1. WTI agreed to do a special six-month course (starting immediately for a client. The contract calls for a monthly fee of $2,300, 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 2018 1. On October 15, WTI agreed to teach a four-month class beginning immediately) for an individual for $4.780 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTS accruals are applied to the nearest half month for example, October recognizes one-half month accrual) 9. Wis 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 Undjusted Trial Balance December 31, 2017 Credit art 2 of 3 Debit $ 26,793 10,304 15,458 2,062 30,913 3 oints $ 9,275 72,119 eBook WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional Library Accumulated depreciation Professional Library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearned training fees T. Wells, Capital T. Wells, withdrawals Tuition fees earned Training fees earned Depreciation expense-Professional Library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 16,489 36,931 References 11,500 65,539 41,220 105, 108 39,158 e 49,464 22,682 7,214 5,771 $ 284,000 $284,000 2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. 2-b. Prepare an adjusted trial balance. m Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. Cash nces Equipment Unadj. Bal Unadi. Bal Ad Bal Adj. Bal Accounts Receivable Unadj. Bal Accumulated Depreciation Equipment Unadi. Bal Adj. Bal Adj. Bal Teaching Supplies Accounts Payable Unadj. Bal Unadj. Bal Teaching Supplies Accounts Payable Unadi. Bal. Unadi. Bol Part 2 of 3 Adi. Bal. Adj. Bal. 10 points Prepaid Insurance Salaries Payable Unadj. Bal Unad. Bal eBook References Ad. Bal Adj. Bal Prepaid Rent Unearned Training Fees Unadj. Bal Unadi. Bal Adj. Bal. Adi Bal Professional Library T. Wells, Capital Unadj. Bal. Unadi. Bal Adj. Bal Adj. Bal ME all Professional Library T. Wells, Capital Unadj. Bal. Part 2 of 3 Unadi. Bol Adj. Bal. Adj. Bal. 10 points T. Wells, Withdrawals Accumulated Depreciation Professional Library Unadi. Bal eBook Unadi. Bol References Adj. Bal. Adj. Bal. Tuition Fees Earned Rent Expense Unadj. Bal Unad BNI Adi. Bal Adi Bal Training Fees Earned Teaching Supplies Expense Unadi. Bal UnadjBal Required information m Adj. Bal Adj. Bal. 2 of 3 Training Fees Earned Unadj. Bal Teaching Supplies Expense Unadi. Bal Adi. Bal Adj. Bal -Book erences Depreciation Expense-Professional Library Unadj. Bal Advertising Expense Unadi. Bal Adj. Bal Adj Bal Depreciation Expense Equipment Unadj. Bal. Utilities Expense Unadi. Bal Adj. Bal Adj. Bal Salaries Expense Insurance Expense Unadi. Bal Unadj. Bal 3 Part 2 of 3 Credit 10 points eBook References WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31, 2017 Debit Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation Professional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearned training fees T. Wells, Capital T. Wells, Withdrawals Tuition fees earned Training fees earned Depreciation expense--Professional library Depreciation expense Equipment Salaries expense Part 2 of 3 10 points Equipment Accumulated depreciation Equipment Accounts payable Salarios payable Uneamed training fees T. Wells, Capital T. Wells, Withdrawals Tuition fees earned Training fees earned Depreciation expense Professional library Depreciation expense Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals eBook References