Old MathJax webview

3a 3b and 3c please! at the bottom of the unadjusted trial balance

Che [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 Wil'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 2017 C. Annual depreciation on the equipment is $14,400. d. Annual depreciation on the professional library is $7,200. 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 $2,200, 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 $4,880 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 unadjustea trial balance December 31, 2017 Credit Debit 26,491 9 10, 187 15, 284 2,039 Be, 565 $ 9,171 71,305 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 Utilities expense Tetals 16,303 36,885 9 11,000 12,909 52,899 48,755 103,924 38,717 48 907 22 129 ES 7132 5796 $ 284 899 $280 80 Problem 3-3A Part 3 3-2. Prepare Wells Technical Institute's Income statement for the year 2017 3-b. Prepare Wells Technical Institute's statement of owner's equity for the year 2017 3-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2017 Cash Unadj Bal 26491 0 Salary Payable Unadj Bal 400 Salaries expense 400 Adj Bal. 400 400 Adj Bal. 26491 26491 26491 Prepaid Rent Accounts receivable Unadj Bal 2039 Rent expense 2039 Unadj Bal Tuition fees earned 2039 2039 12200 Adj Bal. 12200 12200 12200 11000 Training fees earned Adj Bal. Unearned training fees 4400 Unadj Bal 6600 11000 Equipment 71305 Adj Bal. 71305 Unadj Bal 11000 71305 71305 Professional library 30565 Unadj Bal Accumulated depreciation-Equipment Unadj Bal 16303 30703 Depreciation expens 14400 30703 30703 Adj Bal. 30565 30565 30565 Adj Bal. Common Stock Unadj Bal 12000 12000 Unadj Bal Teaching supplies 10187 Teaching supplies ex Adj Bal. 10187 Adj Bal. 7067 3120 10187 12000 12000 Accounts payable Unadj Bal 36885 Accumulated depreciation-Professional library Unadj Bal 9171 16371 Depreciation expens 7200 16371 16371 36885 Adj Bal. Adj Bal. 36885 36885 52800 Retained Earnings Unadj Bal 52800 52800 Prepaid Insurance 15284 Insurance expense Adj Bal. 15284 Unadj Bal 3600 11684 Adj Bal. 52800 15284 Tuition fees earned Unadj Bal 116124 Accounts receivable 116124 103924 12200 116124 Unadj Bal Salary Payable Salaries expense 489071 400 Income Summary 49307 Income Summary 49307 49307 Retained Earnings Dividends 40755 Unadj Bal 40755 Unadj Bal Utilities expense 5706 Income Summary 5706 5706 5706 40755 40755 Training fees earned Unadj Bal 43117 Unearned training fer 43117 Prepaid insurance 38717 4400 Insurance expense 3600 Income Summary 3600 Income Summary 3600 3600 43117 Unadj Bal Prepaid Rent Rent expense 22429) 2039 Income Summary 24468 24468 24468 Depreciation expense-Professional library Accumulated depre 72001 Income Summary 7200 7200 7200 Depreciation expense-Equipment Accumulated depre 144000 Income Summary 14400 14400 14400 Unadj Bal Advertising expense 71321 Income Summary 7132 7132 7132 71 Adjusting Enteries Date Particulars 31.12.2018 Insurance Expense a/c To Prepaid Insurance (Insurance expensed) Dr. Debit in $Credit in $ 36001 3600 Debit in $ Credit in $ 26491 Dr 7067 31.12.2018 Teaching supplies expense a/c To Supplies (Supplies expensed) 10187-3120 12200 3120 11684 0 30565 7067 16371 14400 71305 31.12.2018 Depreciation expense-Equipment a/c Dr. To Accumulated depreciation-Equipment (To record depreciation) 14400 400 Dr. 30703 36885 400 6600 12000 52800 31.12.2018 Depreciation expense-Professional library a/c To Accumulated depreciation-Professional library (To record depreciation) 72001 Adjusted Trial Balance For the period ending 31.12.2018 Particulars 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 Utilities expense Totals 7200 40755 Dr. 4400 31.12.2018 Unearned Training Fees a/c To Training fees earned (Revenue recognized) 2200 x 2 116124 43117 4400 Dr. 12200 31.12.2018 Accounts receivable a/c To Tuition fees earned (Revenue accrued) 4880 x 2.5 12200 220 7200 14400 49307 3600 24468 7067 7132 400 400 31.12.2018 Salaries expense a/c Dr. To Salaries payable (Salary expense accrued) 2 x 2 x 100 = 400 400 5706 315000 315000 Dr. 20391 31.12.2018 Rent Expense a/c To Prepaid Rent (Rent expensed) 2039 Statement of Income For the period ending 31.12.2018 Tuition fees earned Training fees earned Amounts in $ Amounts in $ 116124 43117 159241 Balance sheet As at 31.12.2018 Assets Current Assets Cash Accounts receivable Teaching supplies Prepaid insurance 36885 Amounts in $ Amounts in $ Liabilites & Equity Current Liabilities 26491 Accounts payable 12200 Salaries payable 3120 Unearned training fees 11684 53495 400 6600 43885 7200 14400 49307 3600 Less: Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Net Income 30565 0 24468 7067 7132 5706 Non Current Assets Professional library Accumulated depreci Equipment Accumulated depreci Total Assets - 16371 71305 -30703 14194 Shareholders Equity Common Stock 40602 Retained Earnings 108291 Total Liabilities & Equity 12000 52406 118880 64406 40361 108291 0 Statement of Retained Earnings For the period ending 31.12.2018 Beginning Balance Add:Net Income 52800 40361 93161 -40755 52406 Less:Dividends Cash Unadj Bal 264911 0 Salary Payable Unadj Bal 400 Salaries expense 4001 Adj Bal. 400 400 26491 Adj Bal. 26491 26491 Prepaid Rent Accounts receivable Unadj Bal 2039 Rent expense 2039 Unadj Bal Tuition fees earned 2039 2039 12200 Adj Bal. 12200 12200 11000 Training fees earned Adj Bal. Unearned training fees 4400 Unadj Bal 6600 11000 Equipment 71305 Adj Bal. 71305 Unadj Bal 71305 11000 71305 Unadj Bal Accumulated depreciation-Equipment Unadj Bal 16303 30703 Depreciation expens 14400 30703 30703 Professional library 30565 Adj Bal. 30565 30565 30565 Adj Bal. Common Stock Unadj Bal 12000 Teaching supplies 10187 Teaching supplies ex 12000 Unadj Bal 7067 Adj Bal. Adj Bal. 3120 12000 12000 10187 10187 Accumulated depreciation-Professional library Unadj Bal 9171 16371 Depreciation expens 7200 16371 16371 36885 Accounts payable Unadj Bal 36885 36885 Adj Bal. Adj Bal. 36885 52800 Retained Earnings Unadj Bal 52800 52800 Unadj Bal Prepaid Insurance 15284 Insurance expense Adj Bal. 15284 Adj Bal. 3600 11684 15284 52800