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 that require adjusting entries on December 31. Additional Information Items a. An analysis of WTIS insurance policies shows that $3,335 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,891 are available at year end, c. Annual depreciation on the equipment is $13,342 d. Annual depreciation on the professional library is $6,671 e. On September 1. WTI agreed to do tive training courses for a client for $2,600 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 $13,000 cash in advance for all five training 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 $9.903 of the tuition revenue has been earned by WTI g. Wirs 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 ELES TECHNICAL INSTITUTE Unad usted Trsat ante December 31 Droit 5 27.547 Credit Accounts receivable Teaching supplies read manice Prepair 10.591 15,090 2.120 5 27,547 18,596 15,894 2,120 31,784 $ 9,937 98,000 16,954 22.ee 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 T. Wells, Capital T. Wells, withdrawals 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 13,000 106,027 42,381 108,069 40.261 B 50.858 23,320 7.417 5,93 $315,348 $ 315,43 3-0. Prepare Wells Technical Institute's income statement for the year. 3-b. Prepare Wells Technical Institute's statement of owner's equity for the year. The T. Wells, Capital account balance was $106.027 on December 31 of the prior year, and there were no owner investments in the current year 3.c. Prepare Wells Technical Institute's balance sheet as of December 31, Complete this question by entering your answers in the tabs below. Req Req 3B Reg 30 Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 Revenues Tuition revenue Training revenue 0 Salaries expense Rent expense Advertising expense Teaching supplies expense Depreciation expense-Professional library Depreciation expense-Equipment Insurance expense Utilities expense 0 Net Income Required information Complete this ques. on by entering your answers in the tabs below. Req 3A Reg 38 Req 30 Prepare Wells Technical Institute's statement of owner's equity for the year. The T. Wells, Capital account balance was $106,027 on December 31 of the prior year, and there were no owner investments in the current year. WELLS TECHNICAL INSTITUTE Statement of Owner's Equity For Year Ended December 31 T. Wells, Capital, December 31 prior year Add: Investments by owner 0 0 $ 0 T. Wells, Capital, December 31 current year Ke 16 Required information zero balances.) WELLS TECHNICAL INSTITUTE Balance Sheet December 31 0 0 S 0 0 0
