Required information Problem 3-3A (Algo) Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, P5 (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 that require adjusting entries on December 31 Additional Information Items a. An analysis of WTI's Insurance policies shows that $3,600 of coverage hos expired. b. An inventory count shows that teaching supplies costing $3,120 are available at year-end. c. Annual depreciation on the equipment is $14,400. d. Annual depreciation on the professional library is $7.200. e. On September 1, WTI agreed to do tive training courses for a client for $2,600 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 $13,000 cash in advance for all five training courses on September 1, and WTI credited Uneamed Revenue. 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, $11,200 of the tuition revenue has been earned by WTI. g. WT'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 Credit Cash Accounts receivable Debit $ 26,189 0 WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Credit Debit $ 26, 189 0 10,071 15, 110 2,015 30,217 $ 9,066 104,000 16,117 26,000 0 13,000 105,902 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation Professional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearned revenue T. Wells, Capital T. Wells, withdrawals Tuition revenue Training revenue Depreciation expense-Professional Library Depreciation expense-Equipment Salarios expense Insurance expense Rent expense Teaching supplied expense Advertising expense Utilities expense Totals 40,291 102,740 38,275 0 0 48,350 0 22,165 0 7,051 5.641 $ 311,100 $ 311,100 Problem 3-3A (Algo) Part 2 2-a. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts 2. Pronare an adusted trial balance. Required information Equipment Cash Unadjusted Balance Unadjusted Balance 0 0 Adjusted Balance Adjusted Balance Accounts Receivable Accumulated Depreciation-Equipment Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance Teaching Supplies Accounts Payable Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance Prepaid Insurance Salaries Payable Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance 0 Prepaid Rent Unearned Revenue Unadjusted Balance Unadjusted Balance Eequired information Unearned Revenue Prepaid Rent adjusted Balance Unadjusted Balance 0 0 justed Balance Adjusted Balance Professional Library T. Wells, Capital madjusted Balance Unadjusted Balance 0 0 adjusted Balance Adjusted Balance T. Wells, Withdrawals Accumulated Depreciation Professional Library Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance Tuition Revenue Rent Expense Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance Training Revenue Unadjusted Balance Teaching Supplies Exponse Unadjusted Balance Required information Uw " Training Revenue Teaching Supplies Expense Unadjusted Balance Unadjusted Balance 0 0 Adjusted Balance Adjusted Balance Advertising Expense Depreciation Expense-Professional Library Unadjusted Balance Unadjusted Balance 0 Adjusted Balance 0 Adjusted Balance Utilities Expense Depreciation Expense-Equipment Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance 0 Salarios Expense Insurance Expense Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance Reg 2A Reg 28 > Adjusted Trial Balance December 31 Debit Credit bf3 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue T. Wells, Capital T. Wells, Withdrawals Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 0 w