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Additional Information Items a. An analysis of WTI's insurance policies shows that $3,864 of coverage has expired. b. An inventory count shows that teaching
Additional Information Items a. An analysis of WTI's insurance policies shows that $3,864 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,349 are available at year-end. c. Annual depreciation on the equipment is $15,458. d. Annual depreciation on the professional library is $7,729. e. On September 1, WTI agreed to do five training courses for a client for $2,700 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $13,500 cash in advance for all five training courses on September 1, and WTI credited Unearned Revenue. f. 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, $12,250 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 Cash Accounts receivable Teaching supplies Debit $27,245 Credit 0 10,478 Prepaid insurance 15,719 Prepaid rent 2,097 Professional library 31,436 Accumulated depreciation-Professional library $9,432 Equipment 97,000 Accumulated depreciation-Equipment 16,768 Accounts payable. 24,000 Salaries payable: Unearned revenue e 13,500 T. Wells, Capital T. Wells, withdrawals Tuition revenue Training revenue Depreciation expense-Equipment Salaries expense Insurance expense 102,057 41,916 106,885 39,820 Depreciation expense-Professional library 0 Rent expense Teaching supplies expense Advertising expense Utilities expense) Totals 50,300 23,067 7,336 5,868 $ 312,462 $ 312,462
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