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 $3,600 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,120 are available at year-end. c. Annual depreciation on the equipment is $14,400. d. Annual depreciation on the professional library is $7,200. e. On September 1, WTI agreed to do five courses for a client for $2,900 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 $14,500 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, $10,450 of the tuition revenue has been earned by WTI. 9. WTI's two employees are paid veekly. 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 $ 27, 396 0 10,536 15,806 2,108 31,610 $ 9,484 102,000 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 Common stock Retained earnings Dividends 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 16,861 21,000 0 14,500 26, 287 83,000 42,149 107, 477 40,040 0 0 50,579 0 23,188 0 7,376 5,901 $ 318,649 $318,649 Required information No Transaction General Journal Credit 1 a Insurance expense Prepaid insurance Dobit 3,600 3,600 2 b. Teaching supplies expense Teaching supplies 7.416 7,416 3 c 14,400 Depreciation expense-Equipment Accumulated depreciation-Equipment 14,400 4 d. 7,200 Depreciation expense-Professional library Accumulated depreciation - Professional library 7,200 5 e. 5,800 Uneamed revenue Training revenue 5,800 6 1. Accounts receivable 10.450 Tuition revenue 10,450 7 400 g Salarios expense Salaries payable 400 8 h. 2,108 Rent expense Prepaid rent 2,108 RUE 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 $3,600 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,120 are available at year-end. c. Annual depreciation on the equipment is $14,400. d. Annual depreciation on the professional library is $7,200. e. On September 1, WTI agreed to do five courses for a client for $2,900 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 $14,500 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, $10,450 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 Credit Debit $ 27, 396 Cash CD h. The balance in the Prepaid Rent account represents rent for December. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Credit Debit $ 27, 396 10,536 15,806 2,108 31,610 $ 9,484 102,000 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 Common stock Retained earnings Dividends 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 16,861 21,000 0 14,500 26,287 83,000 42,149 107,477 40,040 0 0 50,579 0 23,188 0 7,376 5,901 $ 318,649 $318,649 roblem 3-3A (Algo) Part 2 Problem 3-3A (Algo) Part 2 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. Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. Cash Equipment Unadj. Bal Unadj. Bai. Ad Bal 0 Adj. Bal Accounts Receivable Accumulated Depreciation-Equipment Unadj. Bal Unadi. Bal 0 0 Adj. Bal Adj. Bal Teaching Supplies Accounts Payable Unadj. Bal Unadj. Bal 3 Required information Teaching Supplies 13 Accounts Payable Unadj. Bal. Unadj. Bal Adj. Bal. 0 Adj. Bal. Prepaid Insurance Salaries Payable Unadj. Bal Unadj. Bal ces Adj. Bal. Adj. Bal. Prepaid Rent Unearned Revenue Unadj. Bal Unadj. Bal Adj. Bal 0 Adj. Bal Professional Library Common Stock Unadj. Bal Unadj. Bal. 0 0 Adj. Bal. Adj. Bal. Datained Earning Antenance Dundeeenna Ihan Prey 23 24 of 25 Next > rk #2 Saved Help Sa Required information Professional Library Common Stock Unadj. Bal Unadi. Bal Adj. Bal. Adj. Bal. Accumulated Depreciation Professional Library Unadj. Bal. Retained Earnings Unadj. Bal Adj. Bal. 0 Adj. Bal 0 Tuition Revenue Dividends Unadj. Bal Unadi. Bal. 0 Adj. Bal. Adj. Bal 0 Training Revenue Rent Expense Unadj. Bal Unadi. Bal. 0 Adj. Bal 0 Adj. Bal Depreciation Expense-Professional Library Teaching Supplies Expense 3 Required information 3 Depreciation Expense-Professional Library Teaching Supplies Expense Unadj. Bal Unadi. Bal Adj. Bat. 0 Adj. Bal. 0 K Depreciation Expense-Equipment Advertising Expense Unadj. Bal Unadj. Bal ces Adj. Bal 0 Adi. Bal. Salaries Expense Utilities Expenso Unadj. Bat. Unadj. Bal Adj. Bal. 0 Adj. Bal Insurance Expense Unadj. Bal 0 Adj. Bal. DOR GO 23 Required information Prepare an adjusted trial balance. Credit WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31 Debit 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 Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Required information Teaching supplies Prepaid Insurance Prepaid rent Professional library Accumulated depreciation Professional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Uneamed revenue Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense- Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expenso Teaching supplies expense Advertising expense Utilities expense Totals $ 0 $ 0 692 C 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 n that require adjusting entries on December 31. Additional Information Items a. An analysis of WTI's insurance policies shows that $3.600 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,120 are available at year-end. c. Annual depreciation on the equipment is $14,400. d. Annual depreciation on the professional library is $7,200. e. On September 1. WTI agreed to do five courses for a client for $2,900 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 $14,500 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, $10,450 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 Credit Cash Accounts receivable Debit $ 27,396 0 h. The balance in the Prepaid Rent account represents rent for December. Credit Debit $ 27,396 0 10,536 15,806 2,108 31,610 $ 9,484 102,000 WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 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 Common stock Retained earnings Dividends 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 16,861 21,000 0 14,500 26,287 83,000 42,149 107,477 40,040 0 0 50,579 0 23,188 0 7,376 5,901 $ 318,649 $318,649 ALAR Saved Help Save Problem 3-3A (Algo) Part 3 3-a. Prepare Wells Technical Institute's income statement for the year. 3-b. Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $83,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31. Complete this question by entering your answers in the tabs below. Reg 3A Req 3B Reg 3C Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 $ 0 the year. 3-b. Prepare Wells Technical Institute's statement of retained earnings for the year. The Retainec $83,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31. es Complete this question by entering your answers in the tabs below. Req Rea 38 Req 30 Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earning $83,000 on December 31 of the prior year. WELLS TECHNICAL INSTITUTE Statement of Retained Earnings For Year Ended December 31 Retained earnings, December 31 prior year end 0 Retained earnings, December 31 current year end $ 0