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

An analysis of WTI's insurance policies shows that $2,939 of coverage has expired.

An inventory count shows that teaching supplies costing $2,547 are available at year-end.

Annual depreciation on the equipment is $11,756.

Annual depreciation on the professional library is $5,878.

On September 1, WTI agreed to do five courses for a client for $2,900 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 $14,500 cash in advance for all five courses on September 1, and WTI credited Unearned Revenue.

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, $7,200 of the tuition revenue has been earned by WTI.

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.

The balance in the Prepaid Rent account represents rent for December.

Chapter 3 ratios Seved 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 hthat require adjusting entries on December 31 Additional Information Items a. An analysis of WTIS Insurance policies shows that $2,939 of coverage has expired. b. An Inventory count shows that teaching supplies costing $2.547 are available at year-end. c. Annual depreciation on the equipment is $11756 d. Annual depreciation on the professional library is $5,878 e. On September 1. WTI agreed to do five courses for a client for $2,900 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client pa $14,500 cash in advance for all five courses on September 1, and WTI credited Unearned Revenue 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, $7.200 of the tuition revenue has been earned by WTL 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 WILLS TECHNICAL INSTITUTE Unadjusted Trial Dance December 31 Credit Cash Not receivable Teaching supplies paid insurance $ 26,189 0 10.071 15.210 w 20 888 go DU 2 $ 4 3 5 & 7 6 8 W E R Y S D F G H J L co252F pter 3 ratios Her WELLS TECHNICAL INSTITUTE Unadjusted trial Balance December 31 Debit 6 26,189 Credit 19,071 15, 110 2,015 30,217 105,000 16,117 22,000 Cash ccounts receivable Teaching supplies Deeped inborance Prepaid rent Protessional Library Accumulated depreciation-Troessional library Equipment Neculated detectation-quent Mounts payable talaties payable Und rovence Common steek Betained earnings Dividende Tuition avec Training revenue Depreciation expense-Professional Library Depreciation expense-Equipment Salaries expense Intrance expense sont expense Teaching supplies expense Advertising expe Lilit Les expone totals 14,500 29,402 10,000 40,291 102.240 38,275 45, 350 22,165 7,051 5.661 5312.100 312.100 3-a. Prepare Wells Technical institute's income statement for the year 3-5. Prepare Wells Technical Institute's statement of retained eamings for the vear. The Retained Earnings account balance was W KI 3 23 3 & 7 4 6 00 9 0 W E R T Y U 1 0 D F G H J L ULOn com Chapter 3 ratios 6 Savet 3-a. Prepare Wells Technical Institute's Income statement for the year 3-b. Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $80,000 on December 31 of the prior year 3-c. Prepare Wells Technical Institute's balance sheet as of December 31 Complete this question by entering your answers in the tabs below. Reg 3A Reg 30 Reg 30 Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income tatment For Your Ended December 31 Revenues Proy of 4 !! Next > a - * 20 00 FE og by CS $ 4 2 % 5 > 3 & 7 6 8 9 O W E R T Y 0 S D F G H Chapter 3 ratios Required information WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 Revenues W TE ? 10 % 8 2 $ 4 O > 3 7 8 9 W E R Y U 0 S D F G H L howconnect.meducation com7621 Chapter 3 ratios Required information RegJA Reg38 Reg 3C Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $80,000 on December 31 of the prior year WELLS TECHNICAL INSTITUTE Statement of Retained Earnings For Year Ended December 31 Retained earnings. December 31 prior year end Retained Gamings. December 31 Current year and $ O CO 3 BE Bo 3 880 F 9 DO @ % 2 $ 4 3 6 7 8 9 W E R T Y U 0 S F G H K ucation.com Chapter 3 ratios Seved Required information WELLS TECHNICAL INSTITUTE Balance Sheet + December 31 0 0 0 Prev 3 of 4 ! Next > w ESS FT ra FE - % 2 $ 4 0 > 3 & 7 5 00 9 W E R T Y U 0 S D F G HJ L