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 $3,996 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,464 are available at year-end. c. Annual depreciation on the equipment is $15.986. d. Annual depreciation on the professional library is $7,993. e. On September 1, WTI agreed to do five courses for a client for $2,400 each. Twc 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, $13,653 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 27 494 rash 1. WURUNLERICII PUIU ICH ULCUULICPICSCHILSICILIUI WELCI. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Credit Debit $ 27,094 10, 420 15,632 2,085 31, 262 $ 9, 380 99,000 16, 675 23,000 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 Common stock Retained earnings Dividends 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 22, 318 84,000 41,684 106,293 39,599 0 0 50,022 22,935 7, 295 5,836 $ 313,265 $313,265 Dernirodi An inventory count shows that teaching supplies costing $3,464 are available at year-end. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Record entry Clear entry View general journal Annual depreciation on the equipment is $15,986. Note: Enter debits before credits. s Transaction General Journal Debit Credit C. Record entry Clear entry View general journal Annual depreciation on the professional library is $7,993. Note: Enter debits before credits Transaction General Journal Debit Credit d. Record entry Clear entry View general journal d'un 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. Note: Enter debits before credits. Transaction General Journal Debit Credit e. Record entry Clear entry View general journal BRE Required information Prepaid Insurance Salaries Payable 3 Unadj. Bal. Unadj. Bal. 0 0 Adj. Bal. Adj. Bal Prepaid Rent Unearned Training Fees Unadj. Bal Unadj. Bal 0 Adj. Bal Adj. Bal Professional Library Common stock Unadj. Bal. Unadj. Bal Adj. Bal 0 Adj. Bal 0 Retained earnings Accumulated Depreciation Professional Library Unadj. Bal. Unadj. Bal Adj. Bal. Adj. Bal 0 Required information Tuition Fees Eamed Dividends Unadj. Bal Unadj. Bal. 0 0 Adj. Bal Adj. Bal Training Fees Earned Rent Expense Unadj. Bal Unadj. 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 Unadj. Bal. Unadj. Bal Adj. Bal 0 Adj. Bal. Required information Adj. Bal 0 0 Adj. Bal Salaries Expense Utilities Expense Unadj. Bal. Unadj. Bal. 0 Adj. Bal 0 Adj. Bal. + Insurance Expense Unadj. Bal. Adj. Bal 0 Rea24 Req 2B > 6 Required information Prepare Wells Technical Institute's income statement for the year. 3 of 3 WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 Revenues Tuition fees earned Book Training fees earned rint $ 0 ences 7,993 15,986 Expenses Depreciation expense- Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Total expenses 23,979 Net income