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Required information Required information [ The following information applies to the questions displayed below. ] Wells Technical Institute ( WTI ) , a school owned
Required information Required information
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 offsite locations. WTI initially records prepaid expenses and unearned
revenues in balance sheet accounts. Its unadjusted trial balance as of December follows, along with descriptions of
items
a through that require adjusting entries on December
Additional Information Items
a An analysis of WTI's insurance policies shows that $ of coverage has expired.
b An inventory count shows that teaching supplies costing $ are available at yearend.
c Annual depreciation on the equipment is $
d Annual depreciation on the professional library is $
e On September WTI agreed to do five training courses for a client for $ 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
$ cash in advance for all five training courses on September and WTI credited Unearned Revenue.
f On October WTI agreed to teach a fourmonth class beginning immediately for an executive with payment due
at the end of the class. At December $ 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 $
per day for each employee. Req A
Req B
Req C
Prepare Wells Technical Institute's income statement for the year.
Req B Req
Req B
Req C
Prepare Wells Technical Institute's statement of owner's equity for the year. The T Wells, Capital account balance was $
on December of the prior year, and there were no owner investments in the current year.Required information
Prepare Wells Technical Institute's balance sheet as of December
Note: Include all balance sheet accounts, even those with zero balances.
WELLS TECHNICAL INSTITUTE
Balance Sheet
December
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 offsite locations. WTI initially records prepaid expenses and unearned
revenues in balance sheet accounts. Its unadjusted trial balance as of December follows, along with descriptions of
items
a through that require adjusting entries on December
Additional Information Items
a An analysis of WTI's insurance policies shows that $ of coverage has expired.
b An inventory count shows that teaching supplies costing $ are available at yearend.
c Annual depreciation on the equipment is $
d Annual depreciation on the professional library is $
e On September WTI agreed to do five training courses for a client for $ 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
$ cash in advance for all five training courses on September and WTI credited Unearned Revenue.
f On October WTI agreed to teach a fourmonth class beginning immediately for an executive with payment due
at the end of the class. At December $ 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 $
per day for each employee.
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