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 $3,468 of coverage has expired An inventory count shows that teaching supplies costing $3,006 are available at year end Annual depreciation on the equipment is $13,871 Annual depreciation on the professional library is $6,936 On September 1, WTI agreed to do five courses for a client for $2,700 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 $13,500 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, $10,298 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 $ 28,302 Accounts receivable 0 Teaching supplies 10,884 Prepaid insurance 16,329 Prepaid rent 2,178 Professional library 32,655 Accumulated depreciationProfessional library $ 9,798 Equipment 102,000 Accumulated depreciationEquipment 17,418 Accounts payable 23,000 Salaries payable 0 Unearned training fees 13,500 Common stock 24,705 Retained earnings 85,000 Dividends 43,542 Tuition fees earned 111,030 Training fees earned 41,364 Depreciation expenseProfessional library 0 Depreciation expenseEquipment 0 Salaries expense 52,251 Insurance expense 0 Rent expense 23,958 Teaching supplies expense 0 Advertising expense 7,620 Utilities expense 6,096 Totals $ 325,815 $ 325,815 Problem 3 3A Part 1 Required 1 Prepare the necessary adjusting journal entries for items a through h Assume that adjusting entries are made only at year end 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, $10,298 of the tuition has been earned by WTI Note Enter debits before credits Transaction General Journal Debit Credit f

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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

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[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 $3,468 of coverage has expired.
An inventory count shows that teaching supplies costing $3,006 are available at year-end.
Annual depreciation on the equipment is $13,871.
Annual depreciation on the professional library is $6,936.
On September 1, WTI agreed to do five courses for a client for $2,700 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 $13,500 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, $10,298 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	$	28,302
Accounts receivable		0
Teaching supplies		10,884
Prepaid insurance		16,329
Prepaid rent		2,178
Professional library		32,655
Accumulated depreciationProfessional library			$	9,798
Equipment		102,000
Accumulated depreciationEquipment				17,418
Accounts payable				23,000
Salaries payable				0
Unearned training fees				13,500
Common stock				24,705
Retained earnings				85,000
Dividends		43,542
Tuition fees earned				111,030
Training fees earned				41,364
Depreciation expenseProfessional library		0
Depreciation expenseEquipment		0
Salaries expense		52,251
Insurance expense		0
Rent expense		23,958
Teaching supplies expense		0
Advertising expense		7,620
Utilities expense		6,096
Totals	$	325,815	$	325,815

Problem 3-3A Part 1

Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.

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, $10,298 of the tuition has been earned by WTI.

Note: Enter debits before credits.