Reference no: EM132460094

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. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Its unadjusted trial balance as of December 31 follows along with descriptions of items a through h that require adjusting entries on December 31.

Additional Information Items

1. An analysis of WTI's insurance policies shows that $2,674 of coverage has expired.

2. An inventory count shows that teaching supplies costing $2,318 are available at year-end.

3. Annual depreciation on the equipment is $10,698.

4. Annual depreciation on the professional library is $5,349.

5. On September 1, WTI agreed to do five courses for a client for $2,400 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $12,000 cash in advance for all five courses on September 1, and

6. WTI credited Unearned Training Fees.

7. 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, $7,153 of the tuition has been earned by WTI.

8. 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.

9. The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE

Problem 2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts.

Problem 2-b. Prepare an adjusted trial balance.

Attachment:- Unadjusted Trial Balance.rar