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I am not sure how to completely fill out this problem with many parts, Please help? Required information [The following information applies to the questions
I am not sure how to completely fill out this problem with many parts, Please help?
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 policies 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 library is $6,142. e. On September 1, WTI agreed to do five training courses for a client for $2,900 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 $14,500 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, $7,850 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 Prepaid insurance Prepaid rent Professional Library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals Debit Credit $ 27,396 0 10,536 15,806 2,108 31,610 $ 9,484 98,000 16,861 22,000 9 14,500 21, 287 83,000 42,149 107,477 40,040 0 0 50,579 @ 23, 188 @ 7,376 5,901 $ 314,649 $ 314,649 Req Req 3B Req 3C Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 Revenues Tuition revenue Training revenue $ 0 Expenses Depreciation expenseProfessional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense 5,901 5,901 Total expenses Net income > Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end. Answer is not complete. Complete this question by entering your answers in the tabs below. Req Req 3B Req 3C Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $83,000 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 Reg 3 Req 3B Req 3C 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 $ 27,396 Cash Accounts receivable Teaching supplies Prepaid insurance $ 31,610 31,610 Professional library Accumulated depreciation Professional library Equipment Accumulated depreciation-Equipment Total assets Liabilities Accounts payable Salaries payable Unearned revenue ooooo 98,000 98,000 157,006 $ $ 22,000 22,000 Equity Equity Common stock 21,287 Retained earnings 21,287 43,287 Total liabilities and equity Req 3B Req 30 2-a. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. 2-b. Prepare an adjusted trial balance. > Answer is not complete. Complete this question by entering your answers in the tabs below. Req 2A Reg 2B Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. Cash Equipment Unadjusted Balance 27,396 Unadjusted Balance 98,000 Adjusted Balance 27,396 Adjusted Balance 98,000 Accounts Receivable Accumulated Depreciation Equipment Unadjusted Balance 0 Unadjusted Balance 16,861 Adjusted Balance 0 Adjusted Balance 16,861 Teaching Supplies Accounts Payable Unadjusted Balance 10,536 Unadjusted Balance 22,000 Adjusted Balance 10,536 Adjusted Balance 22,000 Prepaid Insurance Salaries Payable Unadjusted Balance 15,806 Unadjusted Balance 0 Adjusted Balance 15,806 Adjusted Balance 0 Prepaid Rent Unearned Revenue Unadjusted Balance 2,108 Unadjusted Balance 14,500 Adjusted Balance 2,108 Adjusted Balance 14,500 Common Stock Professional Library 31,610 Unadjusted Balance Unadjusted Balance 21,287 Adjusted Balance 31,610 Adjusted Balance 21,287 Retained Earnings Accumulated DepreciationProfessional Library Unadjusted Balance 0 0 Unadjusted Balance 83,000 Adjusted Balance 0 Adjusted Balance 83,000 Tuition Revenue Dividends Unadjusted Balance 107,477 Unadjusted Balance 42,149 Adjusted Balance 107,477 Adjusted Balance 42,149 Training Revenue Rent Expense Unadjusted Balance 40,040 Unadjusted Balance 23,188 Adjusted Balance 40,040 Adjusted Balance 23,188 Teaching Supplies Expense Depreciation ExpenseProfessional Library Unadjusted Balance 0 Unadjusted Balance 0 Adjusted Balance 0 Adjusted Balance 0 Advertising Expense Depreciation Expense-Equipment Unadjusted Balance 0 Unadjusted Balance 7,376 Adjusted Balance 0 Adjusted Balance 7,376 Salaries Expense Utilities Expense Unadjusted Balance 50,579 Unadjusted Balance 5,901 Adjusted Balance 50,579 Adjusted Balance 5,901 Insurance Expense Unadjusted Balance 0 Adjusted Balance 0 Prepare an adjusted trial balance. WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31 Debit Credit Cash $ 27,396 Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciationProfessional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expenseProfessional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 27,396 0Step by Step Solution
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