Problem 3 3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, P5, P6 Skip to question 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 An analysis of WTI's insurance policies shows that $3,600 of coverage has expired An inventory count shows that teaching supplies costing $3,120 are available at year end Annual depreciation on the equipment is $14,400 Annual depreciation on the professional library is $7,200 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 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, $11,700 of the tuition has been earned by WTI 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 The balance in the Prepaid Rent account represents rent for December WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit Credit Cash $ 27,547 Accounts receivable 0 Teaching supplies 10,594 Prepaid insurance 15,894 Prepaid rent 2,120 Professional library 31,784 Accumulated depreciationProfessional library $ 9,537 Equipment 97,000 Accumulated depreciationEquipment 16,954 Accounts payable 23,000 Salaries payable 0 Unearned training fees 12,000 Common stock 23,027 Retained earnings 82,000 Dividends 42,381 Tuition fees earned 108,069 Training fees earned 40,261 Depreciation expenseProfessional library 0 Depreciation expenseEquipment 0 Salaries expense 50,858 Insurance expense 0 Rent expense 23,320 Teaching supplies expense 0 Advertising expense 7,417 Utilities expense 5,933 Totals $ 314,848 $ 314,848 Problem 3 3A Part 2 2 a Post the balance from the unadjusted trial balance and the adjusting entries in to the T accounts Cash 27,547 Equipment 97,000 Unadj Bal Unadj Bal Adj Bal 27,547 Adj Bal 97,000 Accounts Receivable Accumulated Depreciation Equipment Unadj Bal Unadj Bal f 16,954 14,400 11,700 Adj Bal 11,700 Adj Bal 31,354 Teaching Supplies Accounts Payable Unadj Bal Unadj Bal 7,474 Adj Bal 7,474 Adj Bal Prepaid Insurance Salaries Payable Unadj Bal Unadj Bal g 400 Adj Bal 0 Adj Bal 400 Prepaid Rent Unearned Training Fees Unadj Bal Unadj Bal Adj Bal Adj Bal 0 Professional Library Common stock Unadj Bal Unadj Bal Adj Bal 0 Adj Bal 0 Accumulated DenreciationProfessional Library Retained earnings Retained earnings Accumulated Depreciation Professional Library Unadj Bal d Unadj Bal 9,537 7,200 Adj Bal 16,737 Adj Bal 0 Tuition Fees Earned Dividends Unadj Bal Unadj Bal Adj Bal Adj Bal 0 Training Fees Earned Rent Expense Unadj Bal Unadj Bal Adj Bal 0 Adj Bal 0 Teaching Supplies Expense Depreciation ExpenseProfessional Library Unadj Bal Unadj Bal Adj Bal Adj Bal 0 Depreciation Expense Equipment Advertising Expense Unadj Bal Unadj Bal Adj Bal 0 Adj Bal 0 Salaries Expense Utilities Expense Unadj Bal Unadj Bal Adj Bal 0 Adj Bal 0 Insurance Expense

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 18, 2024

Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, P5, P6 Skip to question [The following information applies

Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, P5, P6

Skip to question

[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

An analysis of WTI's insurance policies shows that $3,600 of coverage has expired.
An inventory count shows that teaching supplies costing $3,120 are available at year-end.
Annual depreciation on the equipment is $14,400.
Annual depreciation on the professional library is $7,200.
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.
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, $11,700 of the tuition has been earned by WTI.
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.
The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31
	Debit		Credit
Cash	$	27,547
Accounts receivable		0
Teaching supplies		10,594
Prepaid insurance		15,894
Prepaid rent		2,120
Professional library		31,784
Accumulated depreciationProfessional library			$	9,537
Equipment		97,000
Accumulated depreciationEquipment				16,954
Accounts payable				23,000
Salaries payable				0
Unearned training fees				12,000
Common stock				23,027
Retained earnings				82,000
Dividends		42,381
Tuition fees earned				108,069
Training fees earned				40,261
Depreciation expenseProfessional library		0
Depreciation expenseEquipment		0
Salaries expense		50,858
Insurance expense		0
Rent expense		23,320
Teaching supplies expense		0
Advertising expense		7,417
Utilities expense		5,933
Totals	$	314,848	$	314,848

Problem 3-3A Part 2

2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. image text in transcribed

Cash 27,547 Equipment 97,000 Unadj . Bal. Unadj. Bal Adj. Bal. 27,547 Adj. Bal. 97,000 Accounts Receivable Accumulated Depreciation-Equipment Unadj. Bal. Unadj. Bal. f 16,954 14,400 11,700 Adj. Bal. 11,700 Adj. Bal. 31,354 Teaching Supplies Accounts Payable Unadj. Bal. Unadj. Bal. 7,474 Adj. Bal. 7,474 Adj. Bal. Prepaid Insurance Salaries Payable Unadj. Bal. Unadj. Bal. g 400 Adj. Bal. 0 Adj. Bal. 400 Prepaid Rent Unearned Training Fees Unadj. Bal. Unadj. Bal Adj. Bal. Adj. Bal. 0 Professional Library Common stock Unadj. Bal. Unadj. Bal Adj. Bal. 0 Adj. Bal. 0 Accumulated DenreciationProfessional Library Retained earnings Retained earnings Accumulated Depreciation Professional Library Unadj. Bal. d Unadj. Bal. 9,537 7,200 Adj. Bal. 16,737 Adj. Bal. 0 Tuition Fees Earned Dividends Unadj. Bal. Unadj. Bal Adj. Bal. Adj. Bal 0 Training Fees Earned Rent Expense Unadj. Bal. Unadj. Bal Adj. Bal. 0 Adj. Bal. 0 Teaching Supplies Expense Depreciation ExpenseProfessional Library Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. 0 Depreciation Expense-Equipment Advertising Expense Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. 0 Salaries Expense Utilities Expense Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. 0 Insurance Expense