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Required information 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 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 $2,500 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 $12,500 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, $8,200 of the tuition 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, 302 0 10,884 16,329 2,178 32,655 $ 9,798 97,000 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 Common stock Retained earnings Dividends 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 17, 418 23,000 0 12,500 22,705 83,000 43,542 111,030 41,364 52, 251 O OOO 23,958 0 7,620 6,096 $ 320,815 $320,815 1 An analysis of WTI's insurance policies shows that $2,939 of coverage has expired. 2 An inventory count shows that teaching supplies costing $2,547 are available at year-end. 3 Annual depreciation on the equipment is $11,756. 4 Annual depreciation on the professional library is $5,878. 5 On September 1, WTI agreed to do five courses for a client for $2,500 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 $12,500 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees. Vote : journal entry has been entered = 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, $8,200 of the tuition 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 2 3 4 5 67 8 Accounts payable s rage ha Accounts receivable Accumulated depreciation-Equipment Ebi Accumulated depreciation-Professional library Advertising expense n Cash S Common stock rag Depreciation expense-Equipment Depreciation expense-Professional library ebi Dividends n Fauinment Insurance expense Prepaid insurance rage Prepaid rent Professional library Di Rent expense Dani ASI 4 5 6 7 8 Retained earnings Salaries expense re Salaries payable Teaching supplies Teaching supplies expense 4 6 7 8 Teaching supplies expense Training fees earned Tuition fees earned Unearned training fees Utilities expense Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. Cash Equipment Unadj. Bal Unadj. Bal Adj. Bal. 0 Adj. Bal 0 Accounts Receivable Accumulated Depreciation Equipment Unadj. Bal Unadj. Bal. Adj. Bal 0 Adj Bal. 0 Teaching Supplies Accounts Payable Unadj. Bali Unadj. Bal 0 Adj. Bal Adj Bal. Salarles Payable Prepaid Insurance Unad Bal Unadj Bal. 0 Ad Bal Adj Bal Prepaid Rent Unadj. Bal. Unearned Training Fees Unadj. Bal Adj. Bal Adj. Bal Professional Library Common stock Unadj. Bal. Unadj. Bal Adj. Bal. Ad. Bal 01. Retained earnings Accumulated Depreciation Professional Library Unadj. Bal. Unadj. Bal. Adj. Bal Adj. Bal. 0 Dividends Tuition Fees Earned Unadj. Bal. Unadj. Bal. 0 0 Adj Bal Adj. Bal. Dani Enne Toimum F Fama Training Fees Earned Rent Expense Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. 0 Depreciation Expense Professional Library Teaching Supplies Expense Unadj. Bal Unadj. Bal. Adj. Bal Adj. Bal. 0 Depreciation Expense -Equipment Advertising Expenso Unadj. Bal Unadj. Bal. + 0 Adj. Bal 0 Adj. Bal. Utilities Expense Salaries Expense Unadj. Bal Unadj. Bal Adi Ral 0 Adj. Bal Insurance Expense Unadj. Bal. Adj. Bal. 0 Prepare an adjusted trial balance. WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31 Dobit Credit 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 Common stock Retained earnings Dividends Tuition fees camed Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals $ 0 $ $ 0

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