In: Accounting
3-3
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
athrough h that require adjusting entries on
December 31, 2017, follow.
WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 |
|||||
Debit | Credit | ||||
Cash | $ | 27,849 | |||
Accounts receivable | 0 | ||||
Teaching supplies | 10,710 | ||||
Prepaid insurance | 16,068 | ||||
Prepaid rent | 2,143 | ||||
Professional library | 32,133 | ||||
Accumulated depreciation—Professional library | $ | 9,641 | |||
Equipment | 74,968 | ||||
Accumulated depreciation—Equipment | 17,139 | ||||
Accounts payable | 35,341 | ||||
Salaries payable | 0 | ||||
Unearned training fees | 15,000 | ||||
Common stock | 13,000 | ||||
Retained earnings | 55,123 | ||||
Dividends | 42,845 | ||||
Tuition fees earned | 109,254 | ||||
Training fees earned | 40,702 | ||||
Depreciation expense—Professional library | 0 | ||||
Depreciation expense—Equipment | 0 | ||||
Salaries expense | 51,415 | ||||
Insurance expense | 0 | ||||
Rent expense | 23,573 | ||||
Teaching supplies expense | 0 | ||||
Advertising expense | 7,498 | ||||
Utilities expense | 5,998 | ||||
Totals | $ | 295,200 | $ | 295,200 | |
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.
Post the balance from the unadjusted trial balance and the adjusting entries in to the T-account
-a. Prepare Wells Technical Institute's income
statement for the year 2017.
3-b. Prepare Wells Technical Institute's statement
of owner's equity for the year 2017.
3-c. Prepare Wells Technical Institute's balance
sheet as of December 31, 2017.