Required information 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. We also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTiinally records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through that require adjusting entries on December 31, 2017, follow. Additional Information Items a. An analysis of WTI's Insurance policies shows that $2.939 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,547 are available at year-end 2017 c. Annual depreciation on the equipment is $11,756 d. Annual depreciation on the professional library is $5,878 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 $2,700, 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 t. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,080 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received, (wii's accruals are applied to the nearest half-month, for example, October recognizes one-half month accrual) 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, 2017 Debit $ 27,396 Credit Cash Accounts receivable Teaching supplies Prepaid Insurance 10,536 15,806 accruals are applied to the nearest half-month; for example, October recognizes one-half month a 9. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued a 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 $ 27,396 8 10,536 15,806 2,108 31,610 $ 9,484 73,751 16,861 36,022 Cash Accounts rece ecTivable 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, 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 13,500 67,016 42,149 107,477 40,040 8 50,579 23,188 7,376 5,901 $ 290,400 $ 290,400 8 Required information Equipment Unac Bal Unad Bal Part 2 Adj Bal Adi Bal 5 point Accounts Recevable Accumulated Depreciation Equipment Unad Bal Unad Bal Ad Bal Adj Bal AGE Teaching Supplies Accounts Payabile Unad Bol Unad Ball Ad Ball Adi Bal Rerences Prepaid Insurance Salaries Payable Unad Bal Unadi Bal Adi Bal Adi Bal Prepaid Rent Unearned Training Fees Unad Bal Unad Bal Adi Ral Adi RA 8. Required information T. Wells, Capital Professional Library Unadj Bal Unadi Bal t 2 of 3 Adj Ball Ad, Bal nts T. Wells, Withdrawals Accumulated Depreciation - Professional Library Unadi Bal Unadj. Bal eBook Adj Bal Adj. Bal ASK Tuition Fees Earned Rent Expense Unadj. Bal Unadj. Bal Print References Adj. Bal Adi Bal Training Fees Earned Teaching Supplies Expense Unadi Bal Unadj. Bal Adj. Bal Adi Bal Advertising Expense Depreciation Expense - Professional Library Unadj. Bal Unad Bal AH 00 Required information Adi Bal Part 20 | Ad Bal Advertising Expense Depreciation Expense- Professional Library Unad Bal Unad Bal 5 Dots Ad Bal Ad B cBook Utilities Expense Depreciation Expense Equipment Unad Bal Unadj Bal AL |Adi Bal Adi Bal Salaries Expense Insurance Expense References Unad Bal Unad Bal Adi Bal Ad Bal Reg 2B> Required information Adjusted Trial Balance December 31, 2017 Debit Credit X 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, 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