Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO A1, P1, P2, P3 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. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow. Additional Information Items a. An analysis of WTI's insurance policies shows that $3.732 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,235 are available at year-end 2017 c. Annual depreciation on the equipment is $14,929. d. Annual depreciation on the professional library is $7,464 e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,700, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018 f. On October 15, WTI agreed to teach a four month class (beginning immediately) for an individual for $4,640 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI'S accruals are applied to the nearest half-month for example, October recognizes one half month accrual) 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 LUS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 Problem 3-3A Part 2 2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. 2-b. Prepare an adjusted trial balance. Complete this question by entering your answers in the tabs below. Req 2A Reg 28 Post the balanc from the unadjusted trial balance and the adjusting entries in to the T-accounts. Cash Unadj. Bal. Equipment Unadj. Bal Adj. Bal Adj. Bal. Accounts Receivable Unadj. Bal Accumulated Depreciation Equipment Unadj. Bal Adj. Bal Adj. Bal. Teaching Supplies Unadi. Bal Accounts Payable Unadj. Bal Rro S g. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of day for each employee. h. The balance in the Prepaid Rent account represents rent for December. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 Credit Debit $ 27,547 0 10,594 15,894 2,120 31,784 $ 9,537 74, 152 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 T. Wells, Capital T. Wells, Withdrawals 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 16,954 36, 294 0 13,500 67,385 42,381 108,069 40,261 0 0 50,858 0 23,320 0 7,417 5,933 $ 292,000 $292,000 Required information Accounts Receivable Unadj. Bal. Accumulated Depreciation Equipment Unadj. Bal. Adj. Bal. Adj. Bal. Teaching Supplies Unadj. Bal. Accounts Payable Unadj. Bal. Adj. Bal. Adj. Bal. Prepaid Insurance Unadj. Bal. Salaries Payable Unadj. Bal Adj. Bal. Adj. Bal. Prepaid Rent Unadj. Bal. Unearned Training Fees Unadj. Bal. Adj. Bal Adj. Bal. ! Required information Professional Library T. Wells, Capital Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. Accumulated Depreciation-Professional Library Unadj. Bal. T. Wells, Withdrawals Unadj. Bal. Adj. Bal. Adj. Bal. Tuition Fees Earned Unadj. Bal. Rent Expense Unadj. Bal. Adj. Bal. Adj. Bal. Training Fees Earned Unadj. Bal Teaching Supplies Expense Unadj. Bal. Adj. Bal. Adj. Bal. Depreciation Expense Professional Library Advertising Expense O Required information 3 Adj. Bal. Adj. Bal Advertising Expense Depreciation Expense-Professional Library Unadj. Bal. Unadj. Bal 2:48 Adj. Bal. Adj. Bal Utilities Expense Depreciation Expense-Equipment Unadj. Bal Unadj. Bal. Adj. Bal. Adj. Bal Salaries Expense Insurance Expense Unadj. Bal. Unadj. Bal Adj. Bal Adj. Bal. Req2A Req2B >