ASSIGNMENT # 3Ai Saved Help Save & Exit Submit Check my work 3 Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO A1, P1, P2, P3 Part 3 of 3 [The following information applies to the questions displayed below.] 20 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. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow. points Skipped Additional Information Items eBook Print a. An analysis of WTI's insurance policies shows that $3,732 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,235 are available at year-end 2017. c. Annual depreciation on the equipment is $14,929. d. Annual depreciation on the professional library is $7,464. 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 $2,600, and the client paid the first five months' fees in advance. When the cash was received, the arned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,740 tuition References nth payable at the end of the class. The class started on October 15, but no payment has yet been received. example, October recoghizes one-nal onnada per (WTI's accruals are applied to the nearesf the end of the year, two days' salaries have accrued at the rate of $100 g. per day for each h. The balance pd weekly. As nthe Prepaid Rent account represents rent for December. h. The balance in the Prepaid Rent account represents rent for December WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 Credit Debit $ 27,094 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 C 10,420 15,632 2,085 31,262 9,380 72,935 16,675 35,976 C 13,000 66,277 41,684 106,293 39,599 Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense C 50,022 Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense 22,935 0 7,295 5,836 $ 287,200 $287,200 Totals Check my work Required information 3-a. Prepare Wells Technical Institute's income statement for the year 2017 3-b. Prepare Wells Technical Institute's statement of owner's equity for the year 2017. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2017 Complete this question by entering your answers in the tabs below. Req 3C Req 3A Req 3B Prepare Wells Technical Institute's income statement for the year 2017. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31, 2017 ASSIGNMENT # 3Ai Saved Help Save & Exit Submit Check my work 3 Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO A1, P1, P2, P3 Part 3 of 3 [The following information applies to the questions displayed below.] 20 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. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow. points Skipped Additional Information Items eBook Print a. An analysis of WTI's insurance policies shows that $3,732 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,235 are available at year-end 2017. c. Annual depreciation on the equipment is $14,929. d. Annual depreciation on the professional library is $7,464. 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 $2,600, and the client paid the first five months' fees in advance. When the cash was received, the arned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,740 tuition References nth payable at the end of the class. The class started on October 15, but no payment has yet been received. example, October recoghizes one-nal onnada per (WTI's accruals are applied to the nearesf the end of the year, two days' salaries have accrued at the rate of $100 g. per day for each h. The balance pd weekly. As nthe Prepaid Rent account represents rent for December. h. The balance in the Prepaid Rent account represents rent for December WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 Credit Debit $ 27,094 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 C 10,420 15,632 2,085 31,262 9,380 72,935 16,675 35,976 C 13,000 66,277 41,684 106,293 39,599 Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense C 50,022 Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense 22,935 0 7,295 5,836 $ 287,200 $287,200 Totals Check my work Required information 3-a. Prepare Wells Technical Institute's income statement for the year 2017 3-b. Prepare Wells Technical Institute's statement of owner's equity for the year 2017. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2017 Complete this question by entering your answers in the tabs below. Req 3C Req 3A Req 3B Prepare Wells Technical Institute's income statement for the year 2017. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31, 2017