Adjusting Accounts 4.
Required information [The following information applies to the questions displayed below.] Wells Technical Institute (WTI) provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Its unadjusted trial balance as of December 31 follows, along with descriptions of items a through h that require adjusting entries on December 31. Additional Information Items a. An analysis of WTI's insurance policles shows that $3.071 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,662 are available at year-end. c. Annual depreciation on the equipment is $12,285. d. Annual depreciation on the professional llbrary is $6,142. e. On September 1. WTI agreed to do five training courses for a client for $2,600 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The cllent paid $13,000 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,$8,600 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. 3-a. Prepare Wells Technical Institute's income statement for the year. 3-b. Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $79.000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31 . Prepare Wells Technical Institute's income statement for the year. Prepare Wells Technical Institute's income statement for the year. Prepare Wells Technical Institute's income statement for the year. Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Prepare Wells Technical Institute's income statement for the year. Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 Teaching supplies expense Training revenue Tuition revenue Unearned revenue Utilities expense Prepare Wells Technical Institute's statement of retained earnings for the year. The Retair $79,000 on December 31 of the prior year. Prepare Wells Technical Institute's statement of retained earnings for the year. The Retain $79,000 on December 31 of the prior year. Prepare Wells Technical Institute's balance sheet as of December 31 . (Include all balance Prepare Wells Technical Institute's balance sheet as of December 31 . (Include all balance zero balances.) WELLS TECHNICAL INSTITUTE Balance Sheet December 31 Common stock Depreciation expense-Equipment Depreciation expense-Professional library Dividends Equipment Insurance expense Prepare Wells Technical Institute's balance sheet as of December 31 . (Include all balance zero balances.) WELLS TECHNICAL INSTITUTE Balance Sheet December 31 Prepaid insurance Prepaid rent Professional library Rent expense Retained earnings Salaries expense Prepare Wells Technical Institute's balance sheet as of December 31 . (Include all balance Prepare Wells Technical Institute's balance sheet as of December 31 . (Include all balance
