! 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. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially 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 6. An analysis of Wil's insurance policies shows that $3,071 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,662 are available at year-end 2017 c. Annual depreciation on the equipment is $12,285. d. Annual depreciation on the professional library is $6,142 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 f. On October 15, WTI agreed to teach a four month class (beginning immediately) for an individual for $3,340 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (Wil's accruals are applied to the nearest half-month; for example, October recognizes one half month accrual.) g. Wil'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 Credit Debit $ 26, 642 0 10,245 15,371 2,050 30, 739 $ 9, 223 71,718 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 Common stock Retained earnings Dividends 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 16,396 34,659 0 13, 500 14,000 51,169 40,988 104,516 38,937 0 49,186 0 22,550 0 7,173 5,738 $ 282,400 $282,400 2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. 2-b. Prepare an adjusted trial balance. Required Cash 26,642 Equipment 71,718 Unadi Bal Unadi Bal 71.718 Adj Bal 26,642 Adj Bal Accounts Receivable 0 Accumulated Depreciation Equipment Unadj. Bal Unadi. Bal 0 Adj Bal Adj. Bal Teaching Supplies 10,245 Accounts Payable 0 Unadj. Bal Unadj. Bal Adj Bal 10,245 Adj Bal Salaries Payable Prepaid Insurance 15,371 Unadj Bal Unadj. Bal 0 Adi Bal 15,371 Adj Bal Unearned Training Fees Prepaid Rent 2,050 0 Unadj. Bal Unadj Bal 0 2,050 Adj Bal Adj. Bal Common stock Professional Library 30,739 Unadj. Bal Unadj. Bal 0 Adj. Bal 30,739 Adj. Bal Retained earnings Accumulated Depreciation Professional Library Unadj. Bal Unadj. Bal 0 0 0 Adj. Bal. Adj Bal Tuition Fees Earned Dividends 40,988 0 Unadj. Bal Unadj. Bal AAA Training Fees Earned Rent Expense 22,550 Unadj. Bal 0 Unadj. Bal Adj Bal 0 Adj Bal 22,550 Teaching Supplies Expense Depreciation Expense-Professional Library Unadj Bal. 0 Unadi Bal 0 0 Adj Bal 0 Adj. Bal Depreciation Expense-Equipment Unadj Bal Advertising Expense 7,173 Unadj Bal Adj Bal 0 Adi Bal 7,173 Salaries Expense 49,186 Utilities Expense 5,738 Unadi Bal Unadj. Bal Insurance Expense Unadj. Bal. Adj. Bal Reg 2A Req 2B > Adjusted Trial Balance December 31, 2017 Credit $ Debit 26,6421 16,060 2,662 12,300 0 30,739 15,365 71,718 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation -Equipment Accounts payable Salaries payable Uneamed training fees Common stock Retained earnings Dividends Tuition fees earned Training fees earned Depreciation expense Professional library Depreciation expense Equipment 28,681 34,659 400 29,560 14,000 51,169 40,988 117,876 49,737 6,142 12,285 49,586 Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 3,071 28,288 2,662 7.173 5,738 316,054 $ $ 341,447
