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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
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 offsite locations. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. lts unadjusted trial balance as of December 31 follows, along with descriptions of items athrough n that require adjusting entries on December 31. Additional Information Items 3. An analysis of WTI's insurance policies shows that $3,996 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,464 are available at yearend. c. Annual depreciation on the equipment is $15,986. d. Annual depreciation on the professional library is $7,993. e. On September 1, WTI agreed to do five courses for a client for $2,700 each. Two courses will start immediately and nish before the end of the year. Three courses will not begin until next year. The client paid $13,500 cash in advance for all five courses on September 1, and WTI credited Unearned Revenue. f. On October 15, WTI agreed to teach a fourmonth class (beginning immediately) for an executive with payment due at the end ofthe class. At December 31, $12,903 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 $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 Cash Accounts receivable Teaching Supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciationProfessional library Equipment Accumulated depreciationEquipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expenseProfessional library Depreciation expenseEquipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals Debit $ 27,396 9 19,536 15,896 2,199 31,619 192,999 42,149 9 9 59,529 9 23,199 9 7,326 5,991 $ 319,649 Credit 5 9,494 16,961 26,999 9 13,599 29,297 22,999 192,477 49,949 $318,649
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