Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, 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 $3,864 of coverage has expired, b. An Inventory count shows that teaching supplies costing $3,349 are available at year-end. C. Annual depreciation on the equipment is $15,458 d. Annual depreciation on the professional library is $7729 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. 1. 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, $13,000 of the tuition has been earned by WTL 9. 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 Credit Debit $ 28, 302 10,884 16,329 2,178 32,655 $ 9,798 76,185 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 T. Wells, Capital T. Wells, Withdrawals Tuition fees earned Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Salaries axpense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 17,418 39,159 e 12,000 69,231 43,542 111,030 41,364 @ 52, 251 @ 23,958 @ 7,620 6,096 $ 300,000 $300,000 Problem 3-3A Part 1 Required: 1. Prepare the necessary adjusting journal entries for items a through the Assume that adjusting entries are made only at year end. View transaction list Journal entry worksheet An analysis of WTI's insurance policies shows that $3,864 of coverage has expired Note Enterdits before credits Problem 3-3A Part 2 13 2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. 2-b. Prepare an adjusted trial balance. Complete this question by entering your answers in the tabs below. pok Tint Reg 2A Req 2B ences Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. Cash Equipment Unadj Bal Unad Bal Adj Bal Adj. Bal Required information Accounts Receivable Accumulated Depreciation -Equipment Unadj. Bal. Unadj. Bal. Adj. Bal Adj. Bal. Teaching Supplies Accounts Payable Unadj. Bal. Unadj. Bal Adj. Bal Adj. Bal Prepaid Insurance Salaries Payable Unadj Bal Unadj Bal Adj. Bal Ad Bal Required information Prepaid Rent Unearned Training Fees Unadj. Bal Unadj. Bal Adj Bal Adj. Bal Professional Library T. Wells, Capital Unadj. Bal Unadj. Bal Adj. Bal Adj. Bal T. Wells, Withdrawals Accumulated Depreciation Professional Library Unadj Bal Unadj Bal Ad Bell Adj Bal er Three Homework Saved 7 Required information Tuition Foos Eomad Ront Expense 2 of 3 Unadj. Bal. Unadj. Bal Adj Bal Adj. Bal Training Fees Earned Teaching Supplies Expense Book Unadj. Bat. Unadj. Bal Print References Ad. Bal Adj. Bat Advertising Expense Depreciation Exponse Professional Library Unadj. Bal. Unad. Ball Adj Bal Adj Bal Required information |Adj. Bal Adj. Bal. Utilities Expense Depreciation Expense-Equipment Unadj. Bal Unadj. Bal Adj. Bal Adj. Bal Salarles Expense Insurance Expense Unadj. Ball Unadj. Bal. Adj. Bal Adj Bal Req 28 > + ! Required information Req 2A Req 2B 2 of 3 Prepare an adjusted trial balance. Ats WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31 Debit eBook Credit Print References Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation Professional library Equipment Accumulated depreciation-Equipment Accounts payable Required information Accounts payable Salaries payable Unearned training fees T. Wells, Capital T. Wells, Withdrawals Tuition fees eamed Training fees earned Depreciation expense Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals