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[ The following information applies to the questions displayed below. ] WTI, a school owned by Sza Wells, provides training to individuals who pay tuition
The following information applies to the questions displayed below.
WTI, a school owned by Sza Wells, provides training to individuals who pay tuition directly to the school. WTI also offers
training to groups in offsite locations. WTI initially records prepaid expenses and unearned revenues in balance sheet
accounts. Its unadjusted trial balance as of December follows, along with descriptions of items
a through that require adjusting entries on December
Additional Information Items
a An analysis of WTI's insurance policies shows that $ of coverage has expired.
b An inventory count shows that teaching supplies costing $ are available at yearend.
c Annual depreciation on the equipment is $
d Annual depreciation on the professional library is $
e On September WTI agreed to do five training courses for a client for $ 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
$ cash in advance for all five training courses on September and WTI credited Unearned Revenue.
f On October WTI agreed to teach a fourmonth class beginning immediately for an executive with payment due
at the end of the class. At December $ of the tuition revenue 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 $
per day for each employee.
h The balance in the Prepaid Rent account represents rent for December.
a Prepare Wells Technical Institute's income statement for the year.
b Prepare Wells Technical Institute's statement of owner's equity for the year. The T Wells, Capital account balance was $ on
December of the prior year, and there were no owner investments in the current year.
c Prepare Wells Technical Institute's balance sheet as of December
Complete this question by entering your answers in the tabs below.
Req
Req
Prepare Wells Technical Institute's income statement for the year.
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