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 a. An analysis of WTI'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 $2,200 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 $11,000 cash in advance for all five courses on September 1, and WTI credited Unearned Revenue. t. On October 15, WTI agreed to teach a four-month class (beginning mmediately) for an executive with payment due ar the end of the class. At December 31, $8,950 of the tuition revenue has been earned by WTI 9. 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 Debit $ 28,000 o 10,768 16,155 2,155 32,307 $ 9,693 98,000 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional Library Accumulated depreciation-Professional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense 17,232 25,000 0 11,000 21,738 84,000 43,078 109,846 40,923 51,694 d. Annual depreciation on the professional library is $5,878. e. On September 1, WTI agreed to do five courses for a client for $2.200 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 $11,000 cash in advance for all five courses on September 1, and WTI credited Unearned Revenue. 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, $8,950 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 WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Credit Debit $ 28,eee 10,768 16, 155 2,155 32,307 $ 9,693 98,000 17,232 25,000 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 11,000 21,738 84,000 43,078 189, 846 40,923 51,694 0 23,705 7,539 6,031 $ 319,432 $319,432 2-a. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts 2-b. Prepare an adjusted trial balance Required information Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. Cash Equipment Unadj. Bal. Unadj. Bal Adj. Bal Adj. Bal. Accounts Receivable Accumulated Depreciation Equipment Unadi. Bal- Unadj. Bal Adj. Bal Adj. Bal Teaching Supplies Accounts Payable Unadj. Bal Unadj. Bal Adj. Bal. Adj. Ball Prepaid Insurance Salaries Payable Unadj. Ball Unadj. Bal. Adj. Bal Adj. Bal Unearned Revenue Prepaid Rent Unad Ball Unadj. Ball Adj Bal AdjBal Required information Professional Library Common Stock Unadj. Bal Unadj. Bal Adj. Bal. Adj. Bal. Retained Earnings Accumulated Depreciation - Professional Library Unadj. Bal Unadj. Bal Adj. Bal Adj. Bal. Tuition Revenue Dividends Unadi. Bal Unadj. Bal. Adj. Bal. Adj. Bal Training Revenue Rent Expense Unadj. Bal Unadi Bal Adj. Bal Adj. Bal. Depreciation Expense Professional Library Teaching Supplies Expense Unadi. Bal Unadi. Bal Adj. Bal Ad Bal Required information Depreciation Expense-Professional Library Teaching Supplies Expense 3 Unadj. Bal Unadj. Bal Adj Bal Adj. Ball Depreciation Expense-Equipment Advertising Expense Unadj. Bal Unadj. Bal. Adj. Bal. Adj. Bal Salaries Expense Utilities Expense Unadj. Bal Unadj. Bal. tos Adj. Bal Adi Bal Insurance Expense Unadj. Bal Adi Bal 3 Renza Req 2B > Required information Prepare an adjusted trial balance. Credit WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31 Debit Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation Professional library Equipment Accumulated depreciation Equipment Accounts payable Salarios payable Unearned revenue Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salarios expense Insurance expenso Rent expense Teaching supplios expense Advertising expense Utilities expenso Totals 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 bala $84,000 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. Req Req 3B Reg 30 Prepare Wells Technical Institute's income statement for the year WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 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 $84,000 on December 31 of the prioryear, 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 Req 38 Reg 30 Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $84,000 on December 31 of the prior year. WELLS TECHNICAL INSTITUTE Statement of Retained Earnings For Year Ended December 31 Rotained earnings, Decomber 31 prior year and Retained earnings, December 31 current year and Required information Prepare Wells Technical Institute's balance sheet as of December 31. Include all balance sheet accounts, even those with zero balances WELLS TECHNICAL INSTITUTE Balance Sheet December 31