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 $2,807 of coverage has expired. b. An inventory count shows that teaching supplies costing $2.433 are available at year-end. c. Annual depreciation on the equipment is $11.227. d. Annual depreciation on the professional library is $5.614. e. On September 1. WTI agreed to do five courses for a client for $2.700 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 $13.500 cash in advance for all five courses on September 1, and WTI credited Unearned Revenue. t. 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, $7.048 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 Credit Debit $ 26,038 18,013 15,023 2,684 30,043 $ 9,014 105,000 16,625 22, eee Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 13,5ee 38,171 80, Bee 49,059 102,148 38,055 48,071 @ 22,844 7,010 5,608 $319,913 $319,913 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. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. Cash Equipment Unadi. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. 0 Accounts Receivable Accumulated Depreciation-Equipment Unadj. Bal. Unadi. Bal. Adi. Bal. Adj. Bal 0 Teaching Supplies Accounts Payable Unadi. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. 0 Prepaid Insurance Salaries Payable Unadi. Bal. Unadj. Bal. Adi. Bal 0 Adj. Bal. 0 Prepaid Rent Unearned Revenue Unadj. Bal. Unadj. Bal. Adj. Bal 0 Adi. Bal 0 Professional Library Common Stock Unadi. Bal. Unadj. Bal. Adj. Bal 0 Adj. Bal. 0 Retained Earnings Accumulated Depreciation Professional Library Unadj. Bal. Unadj. Bal. Adj. Bal Adj. Bal. 0 Tuition Revenue Dividends Required information Adj. Bal. Adj. Bal. Tuition Revenue Dividends Unadj. Bal. Unadj. Bal. Adi Bal Adi. Bal 0 Training Revenue Rent Expense Unadi. Bal. Unadi. Bal. Adj. Bal. 0 Adj. Bal. 0 Depreciation Expense-Professional Library Teaching Supplies Expense Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. 0 Depreciation Expense-Equipment Advertising Expense Un Bal. Unadj. Bal. Adj. Bal. Adi Bal 0 Salaries Expense Utilities Expense Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. 0 Insurance Expense Unadj. Adj. Bal. Reg 2A Req 2B>
