I need assistance please with this practice question.
1 & 3-a.Post the balance from the unadjusted trial balance and the adjusting entries in to theT-accounts.
1 & 3-b.Prepare an adjusted trial balance.
4-a.Prepare Wells Technical Institute's income statement for the year 2018.
4-b.Prepare Wells Technical Institute's statement of retained earnings for the year 2018.
4-c.Prepare Wells Technical Institute's balance sheet as of December 31, 2018.
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, 2018, 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, 2018. follow. Additional Information Items a. An analysis of WTI's insurance policies shows that $2,400 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,800 are available at year-end 2018. :. Annual depreciation on the equipment is $13.200. d. Annual depreciation on the professional library is $7,200. c. 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 $2,500, 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 2019. f. On October 15. WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,000 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 day for each employee. h. The balance in the Prepaid Rent account represents rent for December. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2918 Debit Credit Cash Accounts receivable 34,208 Teaching supplies Prepaid insurance 12, 808 Prepaid rent Professional library 35,809 Accumulated depreciation-Professional library Equipment 80, 208 Accumulated depreciation-Equipment 15, 808 Accounts payable 26, 808 Salaries payable Unearned training fees 12,508 Common stock Retained earnings, December 31, 2017 Dividends 50, 209 Tuition fees earned 123,906 Training fees earned 49, 898 Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense 50, 808 Insurance expense Rent expense 33, 808 Teaching supplies expense Advertising expense Utilities expense 5,408 Totals $ 317, 409 $317, 409
