Week 3 Problems Saved 0 Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3 [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. Its unadjusted trial balance as of December 31, 2018, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2018, follow Additional Information Items a. An analysis of WTI's insurance policies shows that $3,732 of coverage has expired b. An inventory count shows that teaching supplies costing $3,235 are available at year-end 2018. c. Annual depreciation on the equipment is $14,929 d. Annual depreciation on the professional library is $7,464 e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,200, and the client paid the first five months' fees in advance. When the cash was received, the Uneaned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2019. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $5,140 tuition per 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 h. The balance in the Prepaid Rent account represents rent for December month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month, for example, October recognizes one-half month accrual) day for each employee WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2018 Credit ek 3 Problems h. The balance in the Prepaid Rent account represents rent for December WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2018 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 Common stock Retained earnings, December 31, 2017 Dividends Tuition fees earned Training fees earned Depreciation expense-Professional library Depreciation expense Equipment $ 26,642 10,245 15,371 2,050 30,739 $ 9,223 71,718 16,396 37,159 11,000 14,000 51,169 40,988 104, 516 38, 937 alaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 49,186 22,550 7,173 5,738 $282,400 $282,400 roblem 3-3A Part 2 Problem 3-3A Part 1 and 3 (combined) 1& 3-0. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-acco 1& 3-b. Prepare an adjusted trial balance Complete this question by entering your answers in the tabs below. Req 1 and 3A Req 1 and 3B Post the balance from the unadjusted trial balance and the adjustinq entries in to the T-accounts. Equipment Unadj Bal. Unadj Bal Adj Bal Accumulated Depreciation Equipment Unad Bal Unad Ball Adj, Bal. Adj Bal Accounts Payable Unadj, Bal Unadj Bal. Adj BalNO Adj. Bal. epaid Insurance aries Paya Unadj Bal. Unad Bal Adj. Bal Adj. Bal K Prev 3-3 Week 3 Problems 6 Sav Required information Prepaid Rent Unearned Training Fees Unadj Ball. Unadj. Bal. Adi. Bal. Adj Bal Common stock Unadj Bal Unadj Bal. Adj Bal Adj Bal lated Depreciation-Professional Library Unadj. Bal Unadj. Bal. Adj Bal. Adj Bal Tuition Fees Earned Unadj Bal Unadj. Bal. Ad. Bal. Adj Bal Unadi. Bal. Unadj. Bal Ad Bal Adj Bal Depreciation Expense-Professional Library Unadj, Bal Unadj Bal Prev t3-3 Week 3 Problems 6 Required information Adj Ball Adj. Bal Depreciation Expense Professional Library Unadj Bal Teaching Su Unadj. Bal Adj Bal Adj Bal- De Unadj Bal. Unadj Bal. Ad Bal. Adj. Bal Salaries Expense Utilities Unadj Bal Unadj Bal. AdjBal Adj Bal Unadj. Bal Adi. Bal Co Req 1 and 3A Req 1 and 3B> Required information Adjusted Trial Balance December 31, 2018 Debit Credit Cash of 3 DAccounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation Professional library Equipment ook Accumulated depreciation Accounts payable Salaries payable Equipment int Unearned training fees Common stock Retained earnings Dividends Tuition fees earned Training fees eamed ences Depreciation expense Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals Req 1 and 3A 4-a. Prepare Wells Technical Institute's income statement for the year 2018 4-b. Prepare Wells Technical Institute's statement of retained earnings for the ye 4-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2018 3 Complete this question by enterng your answers in the tabs below. of Req 4A Req 4B Req 4C Prepare Wells Technical Institute's income statement for the year 2018 WELLS TECHNICAL INSTITUTE ok For Year Ended December 31, 2018 nt nces Req 4B Utilities expense Totals 5,738 $282,400 $28 Problem 3-3A Part 4-a. Prepare Wells Technical Institute's income statement for the year 2018. 4-b. Prepare Wells Technical Institute's statement of retained earnings for the 4-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2018 Complete this question by entering your answers in the tabs below. Req 4A Req 4B Req 4c Prepare Wells Technical Institute's statement of retained earnings for the year 20 WELLS TECHNICAL INSTITUTE Statement of Retained Earnings For Year Ended December 31, 2018 Retained earnings, December 31, 2017 Retained eamings, December 31, 2018 K Req 4A Required information Prepare Wells Technical Institute's balance sheet as of December 31, 2018 WELLS TECHNICAL INSTITUTE Balance Sheet Req 4B