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Required Information [The following Information applies to the questions displayed below.] Wells Technical Institute (WTI) provides training to Individuals who pay tultion directly to the
Required Information [The following Information applies to the questions displayed below.] Wells Technical Institute (WTI) provides training to Individuals who pay tultion 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 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. 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, $6,548 of the tuition revenue has been earned by WTI. g. WTI's two employees are pald 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 10,013 15,823 2,804 30,843 $ 9,014 100,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 16,025 21,080 0 14,580 26,171 79, 280 40,859 192,148 38,055 48,071 22,844 7,810 5,608 $ 305, 913 $ 305,913 Cach Equipment Unad ustad Balance Unajud Botone Adjustad Balance Adused Balance Accounts Receivable Unadused Balance Accumulated Depreciation Equipment Unato Balanga Adjustad Balance Adjusted Balance Tasching Bupplies Acoounts Payable Unad ustad Balance Unated Balance Adjustad Balance Adjusted Balance Prepaid insurance Balarles Payable Unad ustad Balance Unauthod Balance Adjusted Balance Adjustod Balance Prepaid Rent Unearned Revenue Unad ustad Balance Unauthod Balance Adjusted Bianca Adjusted Balance Professional Library Common Stook Unad usted Balance Unaustad Balance Adjustad Balance Adustad Balance Retained Earnings Acoumulated Depreciation Professional Library Unad ustad Balance Unadustad Blanca Adjustad Balance Adjusted Balance Tuition Rovanu Dividendo Unad ustad Balance Unauthod Balance Adjusted Balance Adused Balans Training Rovanu Rant Expence Unad usted Balance Unauthod Balance Adjustad Balance Adusted Balance Teaching Supplies Expence Depreciation Expence Professional Library Unad usted Balance Unadjusted Balance Adjustad Balance Adjusted lange Advertising Expenca Depreciation Expans-Equipment Unad ustad Balance Unajustad Blanca Adjustad Balance Adjusted Balance Balarlac Expence Utiltec Expenca Unadused Balance Unated Balance Adjustad Balance Ad usted Balance Incurano Expenca Unad ustad Balance
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