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 athrough h that require adjusting entries on December 31, 2017, follow. Additional Information Items

1. An analysis of WTI's insurance policies shows that $2,939 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,547 are available at year-end 2017.
3. Annual depreciation on the equipment is $11,756.
4. Annual depreciation on the professional library is $5,878.
5. 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.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,580 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.)
7. 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.
8. The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017
	Debit			Credit
Cash	$	28,000
Accounts receivable		0
Teaching supplies		10,768
Prepaid insurance		16,155
Prepaid rent		2,155
Professional library		32,307
Accumulated depreciationProfessional library				$	9,693
Equipment		75,368
Accumulated depreciationEquipment					17,232
Accounts payable					39,613
Salaries payable					0
Unearned training fees					11,000
T. Wells, Capital					68,493
T. Wells, Withdrawals		43,078
Tuition fees earned					109,846
Training fees earned					40,923
Depreciation expenseProfessional library		0
Depreciation expenseEquipment		0
Salaries expense		51,694
Insurance expense		0
Rent expense		23,705
Teaching supplies expense		0
Advertising expense		7,539
Utilities expense		6,031
Totals	$	296,800		$	296,800

Problem 3-3A Part 2

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. Req 2A Reg 2B Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. Cash Equipment Unadj. Bal Unadj. Bal. 0 Adj. Bal 0 Adj. Bal. Accounts Receivable Accumulated Depreciation-Equipment Unadj. Bal. Unadj. Bal. Adj. Bal Adj. Bal 0 0 Teaching Supplies Accounts Payable Unadj. Bal. Unadj. Bal. 0 Adj. Bal Adj. Bal Salaries Payable Prepaid Insurance Unadj. Bal Unadj. Bal. Adj. Bal. Adj. Bal. Prepaid Rent Unearned Training Fees Unadj. Bal. Unadj. Bal. Adj. Bal Adj. Bal C T. Wells, Capital Professional Library Unadj. Bal. Unadj. Bal. Adj. Bal 0 Adj. Bal. Accumulated Depreciation-Professional Library T. Wells, Withdrawals Unadj. Bal. Unadj. Bal. Rent Expense Tuition Fees Earned Unadj. Bal. Unadj. Bal. Adj. Bal Adj. Bal Training Fees Earned Teaching Supplies Expense Unadj. Bal Unadj. Bal. Adj. Bal Adj. Bal Depreciation Expense-Professional Library Advertising Expense Unadj. Bal Unadj. Bal. Adj. Bal 0 Adj. Bal 0 Utilities Expense Depreciation Expense-Equipment Unadj. Bal. Unadj. Bal. Adj. Bal Adj. Bal. Salaries Expense Insurance Expense Unadj. Bal Unadj. Bal. Adj. Bal 0 Adj. Bal Req 2A Req 2B> O Complete this question by entering your answers in the tabs below. Req 2A Req 2B Prepare an adjusted trial balance. WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31, 2017 Debit Credit 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, Withd rawals 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 S 0 Totals Req 2A Req 2B