Homework for Chapter 3 ratios 2 Required Information Part 2 of 3 30 points eBook Print References [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 $3,071 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,662 are available at year-end. c. Annual depreciation on the equipment is $12,285. d. Annual depreciation on the professional library is $6,142 e. On September 1, WTI agreed to do five courses for a client for $2,600 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 $13,000 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, $8,600 of the tuition revenue has been earned by WTI. 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 Debit Credit Cash Accounts receivable $ 27,094 e Teaching supplies 10,420 Prepaid insurance 15,632 Prepaid rent 2,085 Professional library 31,262 Accumulated depreciation-Professional library Equipment $ 9,380 97,000 Accumulated depreciation-Equipment 16,675 Accounts payable 23,000 Salaries payable Unearned revenue Common stock Retained earnings 13,000 19,318 84,000 Dividends 41,684 Tuition revenue 106,293 Training revenue 39,599 Depreciation expense-Professional library 0 Depreciation expense-Equipment Salaries expense 50,022 Insurance expense 0 Rent expense Advertising expense Utilities expense Totals 22,935 Teaching supplies expense e 7,295 5,836 $ 311,265 $311,265 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. Saved Help Save & Exit Submit Check my work