Exercise 3-9 Preparing a classified balance sheet LO C3 Account title Cash $8,400 25,500 6,050 157,000 Office supplies Trucks 32,342 Accumulated depreciation-Trucks Land 49,000 12,400 8,000 53,000 16,000 117,119 Interest payable Retained earninga Dividends Trucking fees earned 28,000 125,000 20,861 51,590 8,000 9 460 Salaries expense Totals $363,861 $363,861 Use the above adjusted trial balance to prepare Wilson Trucking Company's classified balance sheet as of December 31, 2017 WILSON TRUCKING COMPANY Balance Sheet December 31, 2017 Assets Assets Liabilities Equity Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3 The following information applies to the questions displayed below] Wells Technical Institute (WT), 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 t 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 I. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017 Additional Information Items a. An analysis of WTI's insurance policies shows that $2,939 of coverage has expired b. An inventory count shows that teaching supplies costing $2,547 are available at year-end 2017 c. Annual depreciation on the equipment is $11,756. d. Annual depreciation on the professional library is $5,878. 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 $3,000, 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. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,780 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) 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 h. The balance in the Prepaid Rent account represents rent for December. day for each employee. INSTITUTE Credit $ 26,340 sh Accounts receivable 10,129 al Balance December 31 2017 nts receivable 26,340 Teaching supplies Prepaid insurance 10,129 15,197 2,027 30,391 rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable 9,119 70,903 16,210 32,612 training fees 15,000 11,000 53,431 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 Utilities expense Totals 40,523 103,332 38,496 48,628 22,297 7,092 5,673 $ 279,200 279,200 Problem 3-3A Part 1 Problem 3-3A Part 1 Journal entry worksheet Clear entry View transaction list Journal entry worksheet 3 4 5 6 7 8 An inventory count shows that teaching supplies costing $2,547 are available at year-end 2017. Transaction General Journal Debit Credit b. Record entry Clear entry View general journal Journal entry worksheet 2 4 5 7 8 Annual depreciation on the equipment is $11,756. Note: Enter debits before credits. Debit Clear entry View general journal Record entry Journal entry worksheet 2 3 4 7 Annual depreciation on the professional library is $5,878. Note: Enter debits before credits. Transaction General Journal DebitCredit d. Record entry Clear entry Journal entry worksheet 8 2 On November 1, WTI agreed to do special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $3,000, 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 Note: Enter debits before credits. ransaction General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet 8 On October 15 WT agreed to teach a four-month class(beginning mmediately) for an individual for $2,780 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, Octoberrecognizes one-half monthaccrual.) Note: Enter debits before credits. Transaction General Journal Debit Clear entry View general journal Record entry Journal entry worksheet 2 3 5 6 7 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. 3 Note: Enter debits before credits. Transaction General Journal Debit Credit g. View general journal Record entry Clear entry Journal entry worksheet 3 4 5 6 7 The balance in the Prepaid Rent account represents rent for December. Note: Enter debits before credits. Transaction General Journal Debit Credit h. View general journal Record entry Clear entry Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO 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. 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. Additional Information Items a. An analysis of WTI's insurance policies shows that $2,939 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,547 are available at year-end 2017 c. Annual depreciation on the equipment is $11,756. d. Annual depreciation on the professional library is $5,878 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 $3,000, 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. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,780 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI'S accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) 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 h. The balance in the Prepaid Rent account represents rent for December. day for each employee Unadjusted Trial Balance Credit Debit s 26,340 Accounts receivable