In: Accounting
3-3
[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 athrough h
that require adjusting entries on December 31, 2017, follow.
Additional Information Items
WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 |
|||||
Debit | Credit | ||||
Cash | $ | 26,944 | |||
Accounts receivable | 0 | ||||
Teaching supplies | 10,362 | ||||
Prepaid insurance | 15,545 | ||||
Prepaid rent | 2,073 | ||||
Professional library | 31,088 | ||||
Accumulated depreciation—Professional library | $ | 9,328 | |||
Equipment | 72,533 | ||||
Accumulated depreciation—Equipment | 16,582 | ||||
Accounts payable | 35,202 | ||||
Salaries payable | 0 | ||||
Unearned training fees | 13,500 | ||||
Common stock | 14,000 | ||||
Retained earnings | 51,908 | ||||
Dividends | 41,452 | ||||
Tuition fees earned | 105,701 | ||||
Training fees earned | 39,379 | ||||
Depreciation expense—Professional library | 0 | ||||
Depreciation expense—Equipment | 0 | ||||
Salaries expense | 49,743 | ||||
Insurance expense | 0 | ||||
Rent expense | 22,803 | ||||
Teaching supplies expense | 0 | ||||
Advertising expense | 7,254 | ||||
Utilities expense | 5,803 | ||||
Totals | $ | 285,600 | $ | 285,600 | |
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.
3-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.