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Question: problem 33a preparing adjusting entries adjusted trial balance and financial...

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Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3

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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

  1. An analysis of WTI's insurance policies shows that $3,468 of coverage has expired.
  2. An inventory count shows that teaching supplies costing $3,006 are available at year-end 2017.
  3. Annual depreciation on the equipment is $13,871.
  4. Annual depreciation on the professional library is $6,936.
  5. 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 $2,600, 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.
  6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,219 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.)
  7. 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.
  8. The balance in the Prepaid Rent account represents rent for December.
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 37,341
Salaries payable 0
Unearned training fees 13,000
Common stock 10,000
Retained earnings 58,123
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

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.


Req 2A Req 2B Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts Cash EquipmenPrepaid Rent Unearned Training Fees Unadj. Bal Unadj. Bal Adj. Bal. Adj. Bal Professional Library Common stock Unadj. Bal UnaDepreciation Expense-Equipment Advertising Expense Unadj. Bal. Unadj. Bal. Adj. Bal Adj. Bal Salaries Expense Utilities Expen

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