Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO A1, P1, P2, P3 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 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 2017 c. Annual depreciation on the equipment is $14,929. d. Annual depreciation on the professional library is $7,464, 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 $2,800, 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 $4,540 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been ieceived. (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 December 31, 2017 Credit Debit $ 26,491 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library 10,187 15,284 2.039 30,565 $ 9. 171 WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 Debit $ 26,491 10, 187 15, 284 2,039 30,565 $ 9,171 71,305 16,303 33.885 14,000 64,800 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional librar 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 expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 40,755 103,924 38,717 48,907 0 22.429 7,132 5,706 $ 280,800 $280,800 Problem 3-3A Part 3 3-a. 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 2... - Accounts: Cash nadj. Bal $26.491 Adj. Bal. $26,491 Unadj. Bal Adi.f. Accounts receivable SO $11,350 Adj. Bal. $11,350 Unadj. Bal. Teaching supplies $10,187 Adj.b Adj. Bal. $6,952 53.235 nadj. Bal Prepaid insurance $15,284 Adja Adj. Bal. $3.732 SI1.552 nalj. Bal Prepaid reat S2,039 Adj.h Adj. Bal. $2.039 Professional library $30,565 Adj. Bal. Unadj. Bal, $30,565 Accumulated depreciation Professonal library Unadj. Bal. 59,171 Adj. Bal. $16,635 Adj.d. $7.464 nadj. Bal. Equipment $71,305 Adj. Bal. $71,305 Accumulated depreciation-Equipment Unadj. Bal S16 303 Adj. Bal. $31,232 Adj c. $14.929 Adj. Bal. Accounts payable 533.85 Unady, Bal. S33,885 Salaries payable Unadj. Bal. $400 Adj. Ad Ral. SO $400 Uncarned training fees 55,600 Unadi. Bal. $8,400 Adj. c. Adj. Bal $14.000 T. Wells, Capital $64.800 Unadi. Bal. Adj. Bal. S64.800 1. Wells, withdrawals $40,755 Adj. Bal. naj. Bal. S40,755 Tuition fees earned Unadj. Bal. $115.274 Adj.t. S103,924 $11,350 Adj. Bal. Training fees carned Unadj. Bal $44,317 Adj. c. Adj. Bal. $38,717 $5.600 t ad training $5.00 Urial 514 j. Ball T.Wok Capital 54. Und Bal M. Bet T. Wells, w as anjal Bal USCE 14 d . Training fresca Und all $44.317 M at $50 Deprecate d rary Add $7.464 Adj. Bal 14 Deprecate $14.99 Adel Ball ME SAR SONO A . Ball 549.29 Rentepe 5289 Adj. Bol Te p lies Sh 52 mj Adverthing we 3702 Adj, Bel. Lot Bal SS. Adj. Bal 5.76 3.1. Mjusted Trial Balance WELLS TECHNICAL INSTITUTE Farthes the.31.2011 SIS VONS TECNO Teaching supplies rrepide Prepaid bery cum decision-Prof Equine wedding i SH STU. S35 SIS Salts payable Une fees ws, Capital Full with from ed Den enda litery De T -hy V espa annex espere chinese vertising expense Utile S SUS Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO A1, P1, P2, P3 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 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 2017 c. Annual depreciation on the equipment is $14,929. d. Annual depreciation on the professional library is $7,464, 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 $2,800, 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 $4,540 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been ieceived. (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 December 31, 2017 Credit Debit $ 26,491 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library 10,187 15,284 2.039 30,565 $ 9. 171 WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 Debit $ 26,491 10, 187 15, 284 2,039 30,565 $ 9,171 71,305 16,303 33.885 14,000 64,800 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional librar 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 expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 40,755 103,924 38,717 48,907 0 22.429 7,132 5,706 $ 280,800 $280,800 Problem 3-3A Part 3 3-a. 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 2... - Accounts: Cash nadj. Bal $26.491 Adj. Bal. $26,491 Unadj. Bal Adi.f. Accounts receivable SO $11,350 Adj. Bal. $11,350 Unadj. Bal. Teaching supplies $10,187 Adj.b Adj. Bal. $6,952 53.235 nadj. Bal Prepaid insurance $15,284 Adja Adj. Bal. $3.732 SI1.552 nalj. Bal Prepaid reat S2,039 Adj.h Adj. Bal. $2.039 Professional library $30,565 Adj. Bal. Unadj. Bal, $30,565 Accumulated depreciation Professonal library Unadj. Bal. 59,171 Adj. Bal. $16,635 Adj.d. $7.464 nadj. Bal. Equipment $71,305 Adj. Bal. $71,305 Accumulated depreciation-Equipment Unadj. Bal S16 303 Adj. Bal. $31,232 Adj c. $14.929 Adj. Bal. Accounts payable 533.85 Unady, Bal. S33,885 Salaries payable Unadj. Bal. $400 Adj. Ad Ral. SO $400 Uncarned training fees 55,600 Unadi. Bal. $8,400 Adj. c. Adj. Bal $14.000 T. Wells, Capital $64.800 Unadi. Bal. Adj. Bal. S64.800 1. Wells, withdrawals $40,755 Adj. Bal. naj. Bal. S40,755 Tuition fees earned Unadj. Bal. $115.274 Adj.t. S103,924 $11,350 Adj. Bal. Training fees carned Unadj. Bal $44,317 Adj. c. Adj. Bal. $38,717 $5.600 t ad training $5.00 Urial 514 j. Ball T.Wok Capital 54. Und Bal M. Bet T. Wells, w as anjal Bal USCE 14 d . Training fresca Und all $44.317 M at $50 Deprecate d rary Add $7.464 Adj. Bal 14 Deprecate $14.99 Adel Ball ME SAR SONO A . Ball 549.29 Rentepe 5289 Adj. Bol Te p lies Sh 52 mj Adverthing we 3702 Adj, Bel. Lot Bal SS. Adj. Bal 5.76 3.1. Mjusted Trial Balance WELLS TECHNICAL INSTITUTE Farthes the.31.2011 SIS VONS TECNO Teaching supplies rrepide Prepaid bery cum decision-Prof Equine wedding i SH STU. S35 SIS Salts payable Une fees ws, Capital Full with from ed Den enda litery De T -hy V espa annex espere chinese vertising expense Utile S SUS