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 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 $$2,674$ of coverage has expired.

b$.$ An inventory count shows that teaching supplies costing $$2,318$ are available at year$-$end.

c$.$ Annual depreciation on the equipment is $$10,698.$

d$.$ Annual depreciation on the professional library is $$5,349.$

e$.$ On September $1,$ WTI agreed to do five training courses for a client for $$2,900$ 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

$$14,500$ cash in advance for all five training 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 $31,$ $$5,903$ 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. Req $3$A

Req $3$B

Req $3$C

Prepare Wells Technical Institute's income statement for the year.

Req $3$B Req $3A$

Req $3$B

Req $3$C

Prepare Wells Technical Institute's statement of owner's equity for the year. The T$.$ Wells, Capital account balance was $$97,640$

on December $31$ 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 $31.$

Note: Include all balance sheet accounts, even those with zero balances.

WELLS TECHNICAL INSTITUTE

Balance Sheet

December $31$

$[$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 $$2,674$ of coverage has expired.

b$.$ An inventory count shows that teaching supplies costing $$2,318$ are available at year$-$end.

c$.$ Annual depreciation on the equipment is $$10,698.$

d$.$ Annual depreciation on the professional library is $$5,349.$

e$.$ On September $1,$ WTI agreed to do five training courses for a client for $$2,900$ 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

$$14,500$ cash in advance for all five training 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 $31,$ $$5,903$ 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.