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 h that require adjusting entries on December 31. Additional Information Items a. An analysis of WTI's insurance policies shows that $3,203 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,776 are available at year-end. c. Annual depreciation on the equipment is $12,814. d. Annual depreciation on the professional library is $6,407. e. On September 1, WTI agreed to do five 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 courses on September 1, and WTI credited Unearned 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,$9,250 of the tuition revenue has been earned by WTI. 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 2-a. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. 2-b. Prepare an adjusted trial balance. Complete this question by entering your answers in the tabs below. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. Teaching Supplies Accounts Payable \begin{tabular}{|l|l|l|l|} \hline Unadjusted Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline & \multicolumn{2}{|c|}{0} & \\ \hline & \multicolumn{2}{|c|}{ Salaries Payable } & \\ \hline & & & \\ \hline & & & \\ \hline Unadjusted Balance Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline Adjusted Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline Unadjusted Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline Adjusted Balance & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Training Revenue } & \\ \hline Unadjusted Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline & \multicolumn{2}{|c|}{0} & \\ \hline Adjusted Balance & & & \\ \hline \multicolumn{2}{|c|}{ Depreciation Expense-Professional Library } \\ \hline & & & \\ \hline Unadjusted Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline Adjusted Balance & & & \\ \hline \multicolumn{1}{|c|}{ Depreciation Expense-Equipment } & \\ \hline & & & \\ \hline Unadjusted Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Dwnnamnan adiitndtminl halaman 3-a. Prepare Wells Technical Institute's income statement for the year. 3-b. Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $84,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31. Complete this question by entering your answers in the tabs below. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 \begin{tabular}{|l|l|l|l|} \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} For Year Ended December 31 Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $84,000 on December 31 of the prior year. Prepare Wells Technical Institute's balance sheet as of December 31. Include all balance sheet accounts, even those with zero balances
