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Wells Technical Institute ( WTI ) provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off
Wells Technical Institute WTI 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. Its unadjusted trial balance as of December follows, along with descriptions of items a through h that require adjusting entries on December
Additional Information
An analysis of WTI's insurance policies shows that $ of coverage has expired.
An inventory count shows that teaching supplies costing $ are available at yearend.
Annual depreciation on the equipment is $
Annual depreciation on the professional library is $
On September WTI agreed to do five training courses for a client for $ 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 $ cash in advance for all five training courses on September and WTI credited Unearned Revenue.
On October WTI agreed to teach a fourmonth class beginning immediately for an executive with payment due at the end of the class. At December $ 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 $ per day for each employee.
The balance in the Prepaid Rent account represents rent for December.
WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December
Debit Credit
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 $ $
a Prepare Wells Technical Institute's income statement for the year.
b Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $ on December of the prior year.
c Prepare Wells Technical Institute's balance sheet as of December
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