Reg 2A Reg 2B Post the balance from the unadjusted trial balance and the adjusting entries in to the T- accounts. Cash Equipment Unadi. 26,189 Unadi. Bal. Bal. 70,500 Adj. Bal. 26.189 Adj. Bal. 70.500 Accounts Receivable Accumulated Depreciation- Equipment Unadi Bal. Unadi. Bal. 16,117 Adj. Bal. Adj. Bal. 16.117 Teaching Supplies Accounts Payable Unadj. Bal. Unadi Bal. b Adj. Bal. 0 Adj. Bal. 0 Salaries Payable Unadi. Bal. Prepaid Insurance 15,110 Unadj. Ball 19 Adj. Bal. 15,110 Adj. Bal 400 Unearned Training Fees Unadi. Bal. Prepaid Rent 2,015 Unadi Bal. 2,015 e in Adj. Bal 0 Adj. Bal 0 Professional Library T. Wells, Capital Unadi, Unadi. Reg 3A Reg 3B Reg 3C Prepare Wells Technical Institute's statement of owner were no owner investments during the year. The T. W $64,062 on December 31 of the prior year. WELLS TECHNICAL INSTITUTE Statement of Owner's Equity For Year Ended December 31 T. Wells, Capital, December 31 prior S 64,062 year end Add: Net income 64,062 Less: Withdrawals by owner 40,291 T. Wells, Capital, December 31 current S 23,771 year end Required information 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 $7.729. e. On September 1, WTI agreed to do five courses for a client for $3,000 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 $15,000 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees f. 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, $11,500 of the tuition has been earned by WTI. 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 Debit Credit Cash $ 26,189 Accounts receivable 0 Teaching supplies 10,071 Prepaid insurance 15, 110 Prepaid rent 2,015 Professional library 30,217 Accumulated depreciation- $ 9,066 Professional library Equipment 70,500 Accumulated depreciation- 16, 117 Equipment Accounts payable 32,340 Salaries payable 0 Unearned training fees 15,000 T. Wells, Capital 64,062 T. Wells, withdrawala 40,291 Tuition fees carned 102,740 Training fees earned 38, 275 Depreciation expense- 0 Professional library Depreciation expense Equipment 0 Salaries expense 48,350 Insurance expense 0 Rent expense 22,165 Teaching supplies expense 0 Advertising expense 7,051 Utilities expense 5,641 Totals $277,600 $277,600 roblem 3-3A Part 3 Reg 3A Req 3B Reg 3C Prepare Wells Technical Institute's balance sheet as of Decemb sheet accounts, even those with zero balances. WELLS TECHNICAL INSTITUTE Balance Sheet December 31 Assets Cash $ 26,189 Accounts receivable Teaching supplies Prepaid insurance $ 30,217 30,217 Accumulated depreciation, Equipment 0 $ 56,406 $ 32,340 Liabilities Accounts payable Salaries payable Unearned training fees Total liabilities 32,340 Equity T. Wells, Capital Total liabilities and equity $ 32,340
