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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

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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. WTl 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 WT's 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 $11,756. d. Annual depreciation on the professional library is $5,878. e. On September 1, WTI agreed to do five courses for a client for $2,800 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 $14,000 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, $7,450 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 S Debit 26.038 0 10,013 15,023 2,004 30,043 $ 9,014 70,087 16,025 33,065 0 14,000 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 T. Wells, Capital T. Wells, Withdrawals 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 63,693 40,059 102,148 38,055 0 0 48,071 0 22.044 0 7,010 5,608 $ 276.000 $276.000 No Transaction General Journal Debit Credit 1 a 2,939 Insurance expense Prepaid insurance 2,939 2 b Teaching supplies expense Teaching supplies 3 C. 11,756 Depreciation expense-Equipment Accumulated depreciation-Equipment 11,756 4 d. 5,878 Depreciation expenseProfessional library Accumulated depreciationProfessional library 5,878 5 e. 5,600 Unearned training fees Training fees earned 5,600 6 f. Accounts receivable 7,450 Tuition fees earned 7,450 7 g. 400 Salaries expense Salaries payable 400 8 h. Rent expense 2,004 Prepaid rent 2,004 Cash Equipment Unadj. Bal Unadj. Bal Adj. Bal. 0 Adj. Bal. Accounts Receivable Accumulated Depreciation Equipment Unadj. Bal Unadj. Bal. Adj. Bal. Adj. Bal Teaching Supplies Accounts Payable Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. 0 Prepaid Insurance Salaries Payable Unadj. Bal. Unadj. Bal. Adj. Bal Adj. Bal Prepaid Rent Unearned Training Fees Unadj. Bal Unadj. Bal. Adi. Bal. 0 Adj. Bal. 0 Professional Library T. Wells, Capital Unadj. Bal. Unadj. Bal. Adi Bal Adj. Bal. T. Wells, Withdrawals Accumulated Depreciation-Professional Library Unadj. Bal. Unadj. Bal. 0 Adj. Bal. 0 Adj. Bal. Tuition Fees Earned Rent Expense Unadj. Bal. Unadj. Bal Adj. Bal. 0 Adj. Bal Training Fees Earned Teaching Supplies Expense Unadj. Bal. Unadi. Bal Adi. Bal 0 Adj. Bal. Advertising Expense Depreciation Expense-Professional Library Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal Utilities Expense Depreciation Expense-Equipment Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. Salaries Expense Insurance Expense Unadj. Bal. Unadj. Bal. Adj. Bal. 0 0 Adj. Bal WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31 Debit Credit Cash $ 26,038 Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciationProfessional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearned training fees T. Wells, Capital T. Wells, Withdrawals Tuition fees earned Training fees earned Depreciation expenseProfessional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals $ 26,038 $ 0 WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 $ 0 0 WELLS TECHNICAL INSTITUTE Balance Sheet December 31 0 0 0 0 $ 0 WELLS TECHNICAL INSTITUTE Statement of Owner's Equity For Year Ended December 31 T. Wells, Capital, December 31 prior year end 0 T. Wells, Capital, December 31 current year end $ 0

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