Required Information The following information applies to the questions displayed below.j Wells Technical Institute (WT, a school owned by Tristans 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, 2018 follows, WTI initially records prepaid expenses na unearned revenues in balance sheet ccounts. Descriptions of items through h thst require adjusting entries on December 31, 2018, follow. Additional Information Items a. An anslysis of WTI's insurance policies shows that $3,335 of coverage has expired. b. An inventory count shows that tesching supplies costing $2.891 are available st yesr-end 2018 c. Annual deprecistion on the equipment is $13,342 d. Annual deprecistion on the professional library is $6,671. e. On November 1, WTI agreed to do a special six-month course (starting immedistely) for a client The contract calls for a monthly fee of $2200, and the client paid the first five months' fees in advance. When the cash was received, the Unesrned Training Fees sccount was credited. The fee for the sixth month will be recorded when it is collected in 2019. f. On October 15, WTI agreed to tesch a four-month class (beginning immedistely) for an individual for $4,361 tuition per month paysble at the end of the class. The class started on October 15, but no psyment has yet been received. (WTI's accruals are applied to the nesrest half-month; for example, October recognizes one-half month accrual.) g. WTIl'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 esch employee. h. The balance in the Prepsid Rent account represents rent for December. Unadjusted Trial Balance Deccmber 31, 2818 Debit $ 27,396 Credit Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accurulated depreciation-Professional library 15,886 31,618 73,751 $9,484 Accurulated depreciation Equipnent Accounts payablc salarics payable Uncarned training fees Cormon stock Retained carnings, Decerber 31, 2817 Dividends Tuition fees carned Training fecs carned Depreciation cxpensc-Professional library Depreciation cxpensc-Equipnent salarics expenso 38,522 11,8ee 11,eae 56,816 42,149 187,477 48,848 Teaching supplies expenso Advertising exponse Utilities cxpense Totals 58,579 23,188 7,376 29e,4 $ $298.40e 4-a. Prepsre Wells Technical Institute's income statement for the year 2018 4-b. Prepare Wells Technical Institute's ststement of retained esnings for the year 2018. 4-C. Prepare Wells Technical Institute's balance sheet as of December 31, 2018
