Check my Required information [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. 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 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. c. Annual depreciation on the equipment is $14,400. d. Annual depreciation on the professional library is $7,200. e. On September 1, WTI agreed to do five courses for a client for $2,300 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 $11,500 cash in advance for all five courses on September 1, and WT1 credited Uneamed Training Fees 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, $11.950 of the tuition 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 Prev COD 3 of 6 Next > hp WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit $ 28,302 Credit e 19,884 16,329 2,178 32,655 $ 9,798 103,eee 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 Common stock Retained earnings Dividends Tuition fees earned Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense 17,418 22,000 a 11,500 34,705 79, eee 43,542 111, e3e 41,364 e 52, 251 @ 23,958 @ 7,620 Teaching supplies expense Advertising expense Utilities expense Totals 7,620 6,096 $ 326,815 $326,815 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 ac $79,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31. Complete this question by entering your answers in the tabs below. Req Reg 3B Req 30 Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 ------T-- LITte. Required information Income Statement For Year Ended December 31 Revenues Tuition fees earned Training fees earned $ $ 0 Expenses Depreciation expense-Professional library Depreciation expense Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense 1 Required information Reg 3A Reg 38 Reg 3 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. WELLS TECHNICAL INSTITUTE Statement of Retained Earnings For Year Ended December 31 Retained earnings, December 31 prior year end Add: Net income 0 Less: Dividends Retained earnings, December 31 current year end $ 0 Chin Required information Prepare Wells Technical Institute's balance sheet as of December 31. Include all balance sheet accounts, even those with zero balances WELLS TECHNICAL INSTITUTE Balance Sheet December 31 Assets Cash Accounts receivable Teaching supplies Prepaid insurance Professional library Accumulated depreciation Professional library 0 Accumulated depreciation Equipment 0 0 Total assets $ Liabilities hp Required information Liabilities Accounts payable Salaries payable Unearned training fees Total liabilities 0 Equity Common stock (Retained earnings Total equity Total liabilities and equity 0 $ 0
