WHAT AM I MISSING?

Problem 3-3A (Algo) Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, P5 Skip to question [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 h that require adjusting entries on December 31.

Additional Information Items

1. An analysis of WTI's insurance policies shows that $2,807 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,433 are available at year-end.
3. Annual depreciation on the equipment is $11,227.
4. Annual depreciation on the professional library is $5,614.
5. On September 1, WTI agreed to do five courses for a client for $3,000 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 $15,000 cash in advance for all five courses on September 1, and WTI credited Unearned Revenue.
6. 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, $6,298 of the tuition revenue has been earned by WTI.
7. 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.
8. The balance in the Prepaid Rent account represents rent for December

PART 2B:

Cash Equipment 104,000 Unadj. Bal. 27,698 0 Unadj. Bal. 0 COOL 0 0 olo 0 0 0 Adj. Bal. 27,698 Adj. Bal. 104,000 Accounts Receivable Accumulated Depreciation-Equipment Unadj. Bal. 0 0 0 Unadj. Bal. If 0 0 c 6,298 0 17.046 11,227 0 28,273 0 0 Adj. Bal. 6,298 Adj. Bal. Teaching Supplies 10,652 0 b Accounts Payable 0 Unadj. Bal. 0 Unadj. Bal 25,000 8,219 0 0 0 0 0 0 25,000 Adj. Bal. 2,433 Adj. Bal. Prepaid Insurance 15,981 0 Salaries Payable 0 Unadj. Bal. 0 Unadj. Bal. 0 2,807 0 g 400 0 0 0 13,174 0 400 Adj. Bal. Adj. Bal. Unearned Revenue Unadj. Bal. 0 Unadj. Bal. 0 15,000 Prepaid Rent 2,132 0 h 0 0 > 2,132 6,000 e 0 0 0 0 9,000 Adj. Bal. Adj. Bal. Common Stock Professional Library 31,958 Unadj. Bal. 0 Unadj. Bal. 26,267 0 0 Ooo OOOL 0 0 0 0 Adj. Bal. 31,958 Adj. Bal. 26,267 Retained Earnings Accumulated Depreciation Professional Library Unadj. Bal. 0 d 0 Unadj. Bal. 9,589 5,614 81,000 0 Oo OO 0 0 0 Adj. Bal. 15,203 Adj. Bal. 81,000 Tuition Revenue Dividends 42,613 Unadj. Bal. 0 Unadj. Bal. 0 f 0 108,661 6,298 0 114,959 ololo ss 0 0 42,613 Adj. Bal. Adj. Bal. Training Revenue 0 Unadj. Bal. Unadj. Bal. Rent Expense 23,452 2,132 40,482 6,000 0 0 e 0 0 0 0 0 Adj. Bal. 46,482 Adj. Bal. 25,584 ense Depreciation Expense-Professional Library Unadj. Bal 0 d 5,614 Teaching Supplies 0 0 Unadj. Bal. 0 0 0 8,219 0 0 0 0 Adj. Bal. 5,614 Adj. Bal 8,219 Unadj. Bal. Depreciation Expense-Equipment 0 11,227 Unadj. Bal. Advertising Expense 7,457 0 0 Oo O 0 0 0 0 0 7,457 Adj. Bal. 11,227 | Adj. Bal. Salaries Expense 51,136 0 Unadj. Bal. Utilities Expense 5,966 0 Unadj. Bal. g 0 400 0 lolo 0 0 0 Adj. Bal. 51,536 Adj. Bal. 5,966 Insurance Expense Unadj. Bal. 0 a 2,807 Ooo 0 Adj. Bal. 2,807 Reg 2 Req 2B > Prepare an adjusted trial balance. Credit $ 15,203 28,273 25,000 400 WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31 Debit Cash $ 27,698 Accounts receivable 6,298 Teaching supplies 2,433 Prepaid insurance 13,174 Prepaid rent 0 Professional library 31,958 Accumulated depreciation Professional library Equipment 104,000 Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends 42,613 Tuition revenue Training revenue Depreciation expense-Professional library 5,614 Depreciation expense-Equipment 11,227 Salaries expense 51,536 Insurance expense 2,807 Rent expense 25,584 Teaching supplies expense 8,219 Advertising expense 7,457 Utilities expense 5,966 Totals $ 346,584 O 9,000 26,267 81,000 114,959 46,482 $ 346,584