lem i Saved Check my work mode : This shows what is correct or incorrect for the work you have comp Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, P5. P6 [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 $3,732 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,235 are available at year-end. c. Annual depreciation on the equipment is $14,929. d. Annual depreciation on the professional library is $7,464. e. On September 1, WTI agreed to do five courses for a client for $2,400 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 $12,000 cash in advance for all five courses on September 1, and WTI credited Unearned 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, $12,350 of the tuition has been earned by WTI. g. WIl'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.dit Problem i Saved Check my work mode : This shows what is correct or incorrect fo for all five courses on September 1, and WTI credited Unearned Training Fees. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an executive the end of the class. At December 31, $12,350 of the tuition has been earned by WTI. g. WIl's two employees are paid weekly. As of the end of the year, two days' salaries have accrued day for each employee. h. The balance in the Prepaid Rent account represents rent for December. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit Credit Cash $ 27,698 Accounts receivable Teaching supplies 10, 652 Prepaid insurance 15,981 Prepaid rent 2,132 Professional library 31,958 Accumulated depreciation Professional library $ 9,589 Equipment 104,903 Accumulated depreciation-Equipment 17,846 Accounts payable 26,809 Salaries payable Unearned training fees Common stock 12,060 31, 267 Retained earnings Dividends 78,900 42,613 Tuition fees earned 108,661 Training fees earned Depreciation expense Professional library 40,482 Depreciation expense-Equipment Salaries, expense 51, 136 Insurance expense Rent expense Teaching supplies expense 29,452 Advertising expense Utilities expense 7,457 5,966 Totals $ 323,045 $323,045 Problem 3-3A Part 1 Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries a Prey 9 A
