a. An analysis of WTI' Insurance policies shows that $2,400 of coverage has expired. b. An Inventory count shows that teaching supplies costing $2,800 are avallable at year-end. c. Annual depreciation on the equipment is $13,200. d. Annual depreciation on the professional library is $7,200. e. On September 1, WTI agreed to do five training courses for a client for $2,500 each. Two courses will start Immediately and finish before the end of the year. Three courses will not begin until next year. The client pald $12,500 cash in advance for all five training 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, $7,500 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. HELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit Credit Cash Accounts receivable $ 34,000
a. An analysis of WTI' Insurance policies shows that $2,400 of coverage has expired. b. An Inventory count shows that teaching supplies costing $2,800 are avallable at year-end. c. Annual depreciation on the equipment is $13,200. d. Annual depreciation on the professional library is $7,200. e. On September 1, WTI agreed to do five training courses for a client for $2,500 each. Two courses will start Immediately and finish before the end of the year. Three courses will not begin until next year. The client pald $12,500 cash in advance for all five training 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, $7,500 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. HELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit Credit Cash Accounts receivable $ 34,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Required information
Problem 3-3A (Statle) Preparlng adjusting entrles, adjusted trlal balance, and financlal 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 directiy to
the school. WTI also offers training to groups in off-site locations. WTI Initially records prepald expenses and uneamed
revenues In balance sheet accounts. Its unadjusted trial balance as of December 31 follows, along with descriptions of
Items a through hthat require adjusting entries on December 31.
Addıtional Information
a. An analysis of WT's Insurance policles shows that $2,400 of coverage has explred.
b. An Inventory count shows that teaching supplies costing $2.800 are avallable at year-end.
C. Annual depreclation on the equlpment is $13,200.
d. Annual depreclation on the professional library is $7,200.
e. On September 1, WTI agreed to do five training courses for a client for $2,500 each. Two courses will start Immediately
and finish before the end of the year. Three courses will not begin until next year. The client pald $12,500 cash in
advance for all five training 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, $7,500 of the tuition revenue has been earned by WTI.
g. WTI's two employees are pald weekly. As of the end of the year, two days' salarles have accrued at the rate of $100 per
day for each employee.
h. The balance In the Prepald Rent account represents rent for December.
WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31
Debit
$ 34,000
Credit
Cash
Accounts receivable
Teaching supplies
Prepaid insurance
Prepaid rent
Professional library
Accumulated depreciation-Professional library
Equipment
Accumulated depreciation-Equipment
Accounts payable
Salaries payable
8,00e
12,0ee
3,000
35,00e
$ 10,000
15,e00
26,000
Unearned revenue
12,5e0
T. Wells, Capital
90,eee
T. Wells, Withdrawals
Tuition revenue
5e,00e
123,9e0
40,eee
Training revenue
Depreciation expense-Professional library
Depreciation expense-Equipment
Salaries expense
Insurance expense
Rent expense
Teaching supplies expense
Advertising expense
Utilities expense
50,000
33,00e
e
6,00e
6,400
Totals
$ 317,400
$ 317,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e7d1569-7d45-4428-801b-0f8bcbd855e8%2F71315a73-92f5-49f4-b923-796acc61a891%2Fxc4epts_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Problem 3-3A (Statle) Preparlng adjusting entrles, adjusted trlal balance, and financlal 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 directiy to
the school. WTI also offers training to groups in off-site locations. WTI Initially records prepald expenses and uneamed
revenues In balance sheet accounts. Its unadjusted trial balance as of December 31 follows, along with descriptions of
Items a through hthat require adjusting entries on December 31.
Addıtional Information
a. An analysis of WT's Insurance policles shows that $2,400 of coverage has explred.
b. An Inventory count shows that teaching supplies costing $2.800 are avallable at year-end.
C. Annual depreclation on the equlpment is $13,200.
d. Annual depreclation on the professional library is $7,200.
e. On September 1, WTI agreed to do five training courses for a client for $2,500 each. Two courses will start Immediately
and finish before the end of the year. Three courses will not begin until next year. The client pald $12,500 cash in
advance for all five training 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, $7,500 of the tuition revenue has been earned by WTI.
g. WTI's two employees are pald weekly. As of the end of the year, two days' salarles have accrued at the rate of $100 per
day for each employee.
h. The balance In the Prepald Rent account represents rent for December.
WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31
Debit
$ 34,000
Credit
Cash
Accounts receivable
Teaching supplies
Prepaid insurance
Prepaid rent
Professional library
Accumulated depreciation-Professional library
Equipment
Accumulated depreciation-Equipment
Accounts payable
Salaries payable
8,00e
12,0ee
3,000
35,00e
$ 10,000
15,e00
26,000
Unearned revenue
12,5e0
T. Wells, Capital
90,eee
T. Wells, Withdrawals
Tuition revenue
5e,00e
123,9e0
40,eee
Training revenue
Depreciation expense-Professional library
Depreciation expense-Equipment
Salaries expense
Insurance expense
Rent expense
Teaching supplies expense
Advertising expense
Utilities expense
50,000
33,00e
e
6,00e
6,400
Totals
$ 317,400
$ 317,400
Transcribed Image Text:Aooounts reoelvable
Adjucted Trial Baianoe
Deoember 31
Debit
Credit
Cash
Accounts raceivable
Teaching supplies
Prepaid inaurance
Propaid rent
Professional library
Accumulated depreciation Professional ibrary
Equipment
Accumulated depreciation Equipment
Accounts payable
Salaries payable
Unearned revenue
T. Wels, Capital
T. Wels, Withdrawals
Tuton revenue
Training rovenue
Depreciation expense Professional Ibrary
Depreciation expense Equipment
Salaries expent
Insurance expense
Rant expense
Toaching supplies expense
Advertising expense
Uities opensa
Totals
Expert Solution
Step 1
Adjusted trial balance is prepared by management for its own use. It is not part of financial statements.
It is used by management to see whether alll debit balance matches with credit balance. It is also helpful in preparation of financial statements.
It is prepared by making adjustments in unadjusted trial balance which do not incorporate closing entries.
In simple, closing or adjustment entries are posted in unadjusted trial balance.
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