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 $3,203 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,776 are available at year-end. c. Annual depreciation on the equipment is $12,814. d. Annual depreciation on the professional library is $6,407. e. On September 1, WTI agreed to do five courses for a client for $2,400 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 $12,000 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees. 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, $9,750 of the tuition 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 $ 27,698 10,652 15,981 2,132 31,958 9,589 74,555 17,046 38,068 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 T. Wells, Capital T. Wells, Withdrawals 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 12,000 67,754 42,613 108,661 40,482 51,136 23,452 7,457 5,966 $ 293,600 $293,600 Journal entry worksheet 2 3 4 5 6 7 8 > An analysis of WTI's insurance policies shows that $3,203 of coverage has expired. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Journal entry worksheet Annual depreciation on the equipment is $12,814. Note: Enter debits before credits. Transaction General Journal Debit Credit C. Record entry Clear entry View general journal Journal entry worksheet The balance in the Prepaid Rent account represents rent for December. Note: Enter debits before credits. General Journal Debit Credit Transaction h. Record entry Clear entry View general journal 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. Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. Cash Equipment Unadj. Bal. Unadj. Bal. Adi Bal 0 Adj. Bal. Accounts Receivable Accumulated Depreciation-Equipment Unadj. Bal Unadi. Bal Adj. Bal. Adj. Bal. Teaching Supplies Accounts Payable Unadj. Bal Unadj. Bal Adi. Bal. Adj. Bal Prepaid Insurance Salaries Payable Unadj. Bal. Unadj. Bal. Adi. Bal Adj. Bal. Prepaid Rent Unearned Training Fees Unadj. Bal Unadj. Bal. Adj. Bal. Adj. Bal. Professional Library T. Wells, Capital Unadi. Bal Unadj. Bal Adj. Bal 0 Adj. Bal. T. Wells, Withdrawals Accumulated Depreciation Professional Library Unadi. Bal Unadj. Bal Adj. Bal Adj. Bal. Tuition Fees Earned Rent Expense Unadi. Bal Unadj. Bal. Adj. Bal Adj. Bal. Training Fees Earned Teaching Supplies Expense Unadj. Bal Unadj. Bal Adj. Bal Adj. Bal. Advertising Expense Depreciation Expense-Professional Library Unadj. Bal Unadj. Bal. Adi. Bal 0 Adj. Bal. 0 Utilities Expense Depreciation Expense-Equipment Unadj. Bal. Unadj. Bal Adj. Bal. 0 Adj. Bal. Salaries Expense Insurance Expense Unadj. Bal Unadj. Bal Adj. Bal 0 Adj. Bal. Red 2A Req 2B > 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. Complete this question by entering your answers in the tabs below. Reg 2A Reg 2B Prepare an adjusted trial balance. WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31 Debit Credit 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 T. Wells, Capital T. Wells, Withdrawals Tuition fees earned Training fees earned Depreciation expenseProfessional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals $ 0 $ 0 3-a. 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 $67,754 on December 31 of the prior 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 Req 3C Prepare Wells Technical Institute's statement of owner's equity for the year. Note: there were no owner investments during the year. The T. Wells, Capital account balance was $67,754 on December 31 of the prior year. WELLS TECHNICAL INSTITUTE Statement of Owner's Equity For Year Ended December 31 T. Wells, Capital, December 31 prior year end 0 T. Wells, Capital, December 31 current year end $ 0 3-a. 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 $67,754 on December 31 of the prior 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 Req 3C Prepare Wells Technical Institute's balance sheet as of December 31. Include all balance sheet accounts, even those with zero balances. WELLS TECHNICAL INSTITUTE Balance Sheet December 31 0 0 $ 0 0