Wells Technical Institute, a school own by June Wells, provides training to individuals who pay tuition directly to the school. The following is the unadjusted trial balance which was extracted from the books of the business at the end of its 2012 fiscal year. Cr $ 20,000 26,000 WELLS TECHNICAL INSTITUTE Trial Balance as at June 30, 2012 Dr $ Cash 77.700 Tuition Fees Receivable 18,100 Teaching Supplies 10,000 Prepaid Insurance 24,000 Prepaid Rent 9,000 Office Equipment 54.000 Accumulated Depreciation: Office Equipment Computer Equipment 160,000 Accumulated Depreciation: Computer Equipment Accounts Payable Salaries Payable Interest Payable Unearned Tuition Fees Long-Term Note Payable June Wells, Capital June Wells, Withdrawals 42.000 Tuition Fees Earned Rent Expense 33.000 Salaries Expense 51.000 Insurance Expense Advertising Expense 5.000 Teaching Supplies Expense Interest Expense 3.600 Utilities Expense 6,400 Depreciation Expense - Office Equipment Depreciation Expense - Computer Equipment Total 492.800 3,600 12.500 40,000 156,000 235.700 498.800 Additional data at June 30, 2012: An inventory count shows that teaching supplies costing $3,000 are on hand at June 30, 2012. Rent was paid on June 1, 2012 for the 3-months to August 31, 2012. Insurance premium of $24,000 for a one-year insurance policy was paid on February 1, 2012 The computer equipment is being depreciated over 5 years on the straight-line method of depreciation, down to a residue of $10,000. Office equipment costing $54,000 with an expected life of 3 years and no residual value was acquired on November 1, 2011 and is being depreciated on the straight-line method of depreciation. On April 15, 2012 the Institute agreed to offer a special four-month course (beginning immediately), for an individual, for a tuition fee of $3,000 per month, payable at the end of the class. The services are being provided as agreed and no payment has yet been received The long-term note payable bears interest of 12% per year. The unadjusted Interest Expense account equals to the amount accrued for the first three quarters of the 2012 fiscal year. The accrued interest for the last quarter has not yet been paid nor recorded. On May 1, 2012 the Institute agreed to offer a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,500 and the client paid the first five months fees in advance. When the cash was received, the Unearned Tuition Fees was credited i) Employees earned $4,000 of unpaid and unrecorded salaries as of June 30, 2012. Other Information: The business is expected to make a $14,000 payment toward the note payable during the 2013 fiscal year Required: i). Prepare the necessary year-end adjusting journal entries for Wells Institute on June 30, 2012. Narrations are not required in) Fill in the adjustments and adjusted trial balance columns in the Partial Work Sheet provided. (identifying each adjustment by letter). (See page 10). From the adjusted trial balance prepared in part (ii) above, prepare an income statement and a statement of owner's equity for the year ended June 30, 2012 and a classified balance sheet as at that date. (List expenses in decreasing order of their amount, starting with the largest] Wells Technical Institute Worksheet (Partial) for the year ended June 30, 4008 Account Title Unaduted Auments Tralalance Adnated Trial Balance 77.700 18,100 10,000 24.000 9,000 54.000 160.000 Accounts Cash Tuition Fees Receivable Teaching Supplies Prepaid Insurance Prepaid Rent Office Equipment Accumulated Dep. - Office Equip Computer Equipment Accumulated Dep.- Computer Kaip Accounts Payable Salaries Payable Interest Payable Unearned Tuition Fees Long-Term Note Payable June Wells, Capital June Wells, Withdrawals Tuition Fees Earned 20,000 26,000 3.600 12 500 40,000 156,000 42.000 235.700 3.000 51.000 5,000 Rent Expense Salaries Expense Insurance Expense Advertising Expense Teaching Supplies Expense Interest Expense Utilities Expense Depreciation Expense Office Equip Depreciation Expense - Computer Equip TOTAL 3.600 6.100