a Required information Problem 3-3A (Algo) Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, P5 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 $3,203 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,776 are available at year-end, c. Annual depreciation on the equipment is $12,814 d. Annual depreciation on the professional library is $6,407 e. On September 1, WTI agreed to do five training courses for a client for $2,700 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 $13,500 cash in advance for all five training 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, $9,000 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 n. The balance in the Prepaid Rent account represents rent for December WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit $ 27,547 Credit Cash Accounts receivab Teaching supplies 10,594 WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Credit Debit $ 27,547 10,594 15,894 2,120 31,784 $ 9,537 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 T. Wells, Capital T. Wells, Withdrawals 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 16,954 24,000 @ 13,500 103,527 42,381 108,069 40, 261 50,858 23,320 7,417 5,933 $ 315,848 $ 315,848 Problem 3-3A (Algo) Part 1 Required: 1. Prepare the necessary adjusting journal entries for items a through h Assume that adjusting entries are made only at year-end. Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 > An analysis of WTI's Insurance policies shows that $3,203 of coverage has expired. Note: Enter debits before credits Transaction General Journal Debit Credit a. Record entry Clear entry View general Journal Journal entry worksheet Annual depreciation on the equipment is $12,814. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 8 > Annual depreciation on the professional library is $6,407. Note: Enter debits before credits. les Transaction General Journal Dobit Credit d. Record entry Clear entry View general journal Journal entry worksheet > 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, $9,000 of the tuition revenue has been earned by WTI. Note: Enter debits before credits. General Journal Debit Credit Transaction f. Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 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. Note: Enter debits before credits. Transaction General Journal Debit Credit 9 Record entry Clear entry View general journal Journal entry worksheet