Question

Assignment Print View 2/2/2020 financial statements LO P1, P2, P3 Problem 3-3A Preparing adiusting entries adiusted trial balance and financial State The following information applies to the questions played below! Wolls Technical Institute (WTI), a school owned by Tristan Weeks provides training to individuals who pay to offers training to groups in off-site locations. Its unadiusted trial balance as of December 31, 2017, follows. Wince and unearned revenues in balance sheet accounts. Descriptions of items a through that require adjusting erines Additional Information Items who pay tuition directly to the school. WTI also 17. follows. WTI initially records prepaid expenses djusting entries on December 31, 2017, follow a An analysis of WTTS insurance policies shows that $3.864 of coverage has expired. b. An inventory count shows that teaching supplies conting $3,349 are available at year end 2017 C Annual depreciation on the equipment is $15,458. d Annual depreciation on the professional library is $7,729. thly fee of $2.900. bert Wil agreed to do a special six-month Course (starting immediate for a client. The contract calls for a monthly fee : and the client paid the first five months' fees in advance. When the cash was recelved, the Uneamed Training Fees account was creo fee for the sixth month will be recorded when it is collected in 2018 t On October 15, WTI agreed to teach a four-month class beginning immediately for an individual for $4,700 tuition per month payable at we end of the class. The class started on October 15, but no payment has yet been received, IWTT's accruals are applied to the nearest halt mon for example, October recognizes one half month accrual.) g Wis two employees are paid wekly. As of the end of the year two days salaries have accrued at the rate of $100 per day for each employee. The balance in the Prepaid Rent account represents rent for December WELLS TECHNICAL INSTITUTE Uradjusted Trial Balance December 31, 2017 ving Debit Credit $ 27396 -101536 WA 210B 31,610 $ 9,494 73.751 16.851 35.022 Cash Accounts receivable Teaching supplies Read instance Prepaid rent Professional library Accumulated depreciation Professional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Uneamed training fees Common stock Retained earnings Dividends Tuition fees earned Training fees eamed Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense rtising expense Utilities expense Totals 14.500 15,000 52,016 42,349 107,477-O 401040 50,579 23,188 A 73760 5,901 $ 290,400 $290,400 References Section Break Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3

Answer 1

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General 1 Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Times New Rom - 11 - A A BI U - ->-A 9 % 8... Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells Credit 5 Debit $ 3.864.00 3,864.00 86 $ 7.187.00 $ 7.187.00 BEECEEEEE EE BOWLAN- A1 A1 fic ДА Wells Technical Institute Adjusting Journal Entries 31st, December General Journal Insurance To Prepaid Insurance 7 (Being amount of prepaid insurance transfer to insurance a/c ) Teaching supplies Expenses=($10536-$3349) 9 To Teaching supplies (Being amount of Teaching supplies expenses) 11 ) Depreciation - Equipment To Accumulated Depreciation-Equipment 13 (Being amount of Depreciation on Equipment) 14 d) Depreciation-Professional Library To Accumulated Depreciation-Professional Library (Being amount of Depreciation on Professional Library) 17 ) Unearned Training Fees($2900*2) To Training Fees Earned 19 (Being amount of Unearned Training fees) 201 Accounts receivable To Tuition Fees earned 22 (Being amount of tuition fees due from Oct to Dec ($4700*3)) 23 lg) salaries=($100*2*2) Sheet1 Sheet2 Sheet30 Select destination and press ENTER or choose Paste $ 15,458.00 15,458.00 $ 7,729.00 7,729.00 $ 5,800.00 18 5,800.00 $ 14,100.00 21 $ 14,100.00 | $ 400.00 Average: 29173.78238 100% 0 + Count: 554 Sum: 5630540 DO op ^ 15:51 ENG 04-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General 1 Wrap Text Merge & Center 1 - 3 Autosum * LE Paste Format Painter Clipboard Times New Rom - 11 - A A BI U - ->-A Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells A1 ГДА D E F G H I J K L 23 g) $ 400.00 24 400.00 25 Salaries=($100*2*2) To Salary Payable (Being amount of salary due) Rent Alc To Prepaid Rent (Being amount of Rent for Dec) $ 2,108.00 2.108.00 Particular Credit Teaching Supplies Alc Debit Particular By Teaching $ 10,536.00 supplies Expenses By Balance cd $ 10,536.00 Total To Balance Bld $ $ $ 7,187.00 3,349.00 10,536.00 Total Particular To Balance B/d Prepaid Insurance Alc Debit Particular $ 15,806.00 By Insurance By Balance cld $ 15,806.00 Total Credit $ 3.864.00 $ 11,942.00 $ 15,806.00 Total Accumulated Depreciation Professional Library Debit Particular $ 17,213.00 By Balance B/d Particular To Balance Cld Sheet1 Sheet2 Credit $ 9.484.00 44 » Ready Sheet3 Average: 29173.78238 Count: 554 + Sum: 5630540 B OU 100% - SA AVENG 0 15:51 04-02-2020 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General 1 Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Times New Rom - 11 - A A BI U - ->-A Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells fic A1 ГДА E F G H I J K L Particular To Balance C/d Credit $ 9,484.00 C D Accumulated Depreciation-Professional Library Debit Particular $ 17,213.00 By Balalnce B/d By Depreciation- Professional Library | $ 17,213.00 Total | $ | $ 7,729.00 17,213.00 Total Particular To Balance Cld Credit $ 16,861.00 Accumulated Depreciation Equipment Debit Particular $ 32,319.00 By Balalnce B/d By Depreciation- Equipment $ 32,319.00 Total $ $ 15,458.00 32,319.00 Total Salaries Payable Debit Particular Credit Particular By Salaries 400.00 Expense To Balance cld $ $ 400.00 Total 400.00 Total $ 400.00 $ Unearned Training Fees Debit 60 Particular Credit Particular Sheeti Sheet2 Sheet3 Ready Average: 29173.78238 Count: 554 Sum: 5630540 B OU 100% 0 15:51 SA AVENG 04-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut - General 1 Wrap Text Merge & Center 1 - 3 LE E Copy Paste Format Painter Clipboard Autosum * Times New Rom - 11 - A A BI U - ->-A Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells A1- A 2 F G H I J K L Particular To Training Fees Earned To Balance C/d Total = 8 & 9 8 8 2 2 3 2 3 4 C D E Unearned Training Fees Debit Particular Credit | $ 5,800.00 By Balalnce B/d | $ 14,500.00 $ 8.700.00 $ 14,500.00 Total $ 14,500.00 Tuition Fees Earned Debit Particular Credit $ 1,21,577.00 By Balance B/d | $ 1,07,477.00 By Accounts Receivable $ 14,100.00 $ 1.21,577.00 Total $ 1.21,577.00 Particular To Balance C/d Particular To Balance Cld Training Fees Earned Debit Particular $ 45,840.00 By Balance B/d By Unearned Training fees $ 45,840.00 Total Credit $ 40,040.00 $ $ 5,800.00 45,840.00 la ay Depreciation Expense-Professional Library Debit Particular To Balance Bld Sheeti Sheet2 Sheet3 Particular for By Balance Cld Credit $ 7,729.00 A Ready Average: 29173.78238 Count: 554 + Sum: 5630540 B OU 100% - SA AVENG 0 15:51 04-02-2020 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General 1 Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Times New Rom - 11 - A A BI U - ->-A Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells A1 A В E F G H I J K L 77 Particular To Balance B/d To Accumulated Depreciation Total Credit $ 7,729.00 C D Depreciation Expense-Professional Library Debit Particular $ - By Balance Cld $ 7,729.00 $ 7,729.00 Total Depreciation Expense-Equipment Debit Particular By Balance C/d $ 15,458.00 $ 15,458.00 Total $ 7,729.00 Credit $ 15,458.00 Particular To Balance B/d To Accumulated Depreciation Total $ 15,458.00 Particular To Balance B/d To Salary Payable Total Salaries Expenses Debit Particular $ 50,579.00 By Balance C/d $ 400.00 $ 50.979.00 Total Credit $ 50,979.00 $ 50,979.00 Insurance Expenses Debit Particular To Balance Bld To Prepaid Insurance Total Particular By Balance Cld Credit $ 3.864.00 $ 97 $ $ 3.864.00 3.864.00 98 Total $ 3.864.00 99 Sheet1 Sheet2 Sheet30 Ke Ready Average: 29173.78238 Count: 554 Sum: 5630540 B + OU 100% - ENG 0 15:51 04-02-2020 SPA 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut - General 1 Wrap Text Merge & Center 1 - 3 LE E Copy Paste Format Painter Clipboard Autosum * Times New Rom - 11 - A A BI U - ->-A Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells A1- A C D E F G H I J K L 100 102 Particular To Balance B/d To Prepaid Rent Total Rent Expenses Debit $ $ $ Particular 23,188.00 By Balance Cld 2,108.00 25.296.00 Total Credit $ 25,296.00 103 $ 25,296.00 104 105 106 Teaching Supplies Expenses Debit Particular To Balance B/d To Teaching Supplies Total Particular By Balance Cld Credit $ 7,187.00 $ $ 7,187.00 7,187.00 110 Total $ 7,187.00 Cash Alc Particular To Balance B/d Debit Particular $ 27,396.00 | By Balance Cld $ 27,396.00 Total Credit | $ 27,396.00 $ 27,396.00 Total Particular To Tuition fees Earned Total Accounts Receivable A/c Debit Particular $ 14,100.00 By Balance Cld $ 14,100.00 Total 119 Credit $ 14,100.00 $ 14,100.00 121 122 Prepaid Rent Alc Sheet1 Sheet2 Sheet3 I Ready Average: 29173.78238 Count: 554 Sum: 5630540 B + OU 100% - ENG 0 15:51 04-02-2020 SPA 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General 1 Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Times New Rom - 11 - A A BI U - ->-A Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells A1- A C D E F G H I J K L 2 122 123 124 Particular To Balance B/d Total Prepaid Rent Alc Debit $ $ Particular 2,108.00 By Rent Alc 2,108.00 Total Credit $ 2,108.00 $ 2,108.00 125 Particular To Balance Bld Professional Library Debit Particular $ 31,610.00 By Balalnce C/d Credit $ 31,610.00 Total | $ 31,610.00 Total | $ 31,610.00 Equipment Particular To Balance B/d Debit Particular $ 73,751.00 By Balalnce C/d $ 73,751.00 Total Credit | $ 73,751.00 $ 73,751.00 Total Particular To Balance B/d Accounts Payable Debit Particular $ 35,022.00 By Balance B/d Credit $ 35,022.00 143 Total | $ 35,022.00 Total $ 35,022.00 144 H S heet1 Sheet2 Sheet3 Ready Average: 29173.78238 Count: 554 Sum: 5630540 B + OU 100% - ^ ENG 0 15:51 04-02-2020 op 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General 1 Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Times New Rom - 11 - A A BI U - ->-A Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells A1- A E F G H I J K L 145 C D Common Stock Debit Particular $ 15,000.00 By Balance B/d 146 Particular To Balance cld Credit $ 15,000.00 147 Total $ 15,000.00 Total $ 15,000.00 Particular To Balance Cld Retained Earnings Debit Particular $ 52,016,00 By Balalnce B/d Credit $ 52,016.00 Total $ 52,016.00 Total $ 52,016.00 Dividend Particular To Balance Bld Total Debit Particular $ 42,149.00 By Balance C/d $ 42,149.00 Total Credit $ 42,149.00 $ 42,149.00 160 161 162 163 Particular To Balance B/d Total Advertisement Expenses Debit $ $ Particular 7,376.00 By Balance Cld 7,376.00 Total Credit $ 7,376.00 $ 7,376.00 165 166 167 Ke Ready Sheet1 Sheet2 Sheet30 Average: 29173.78238 Count: 554 Sum: 5630540 B OU 100% 0 + 15:51 op ^ ENG 04-02-2020

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy - General LE Paste Format Painter Clipboard 1 Times New Rom - 11 - A A BI U - ->-A Wrap Text Merge & Center 9 1 % 9 188 198 conditiongl - 3 insert Delete Format Autosum * Ž Clearv fra Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing det hele Font Alignment Number Cells - fe A1 A C D E F G H I J K L 2 168 169 Particular To Balance B/d Total Utilities Expenses Debit $ $ Particular 5,901.00 By Balance Cld 5,901.00 Total Credit $ 5,901.00 $ 5,901.00 四四四四四四四四四四 Credit Debit $ 27,396.00 $ 14,100.00 $ 3,349.00 $ 11,942.00 180 $ 31,610.00 Wells Technical Institute Adjusted Trial Balance Dec 31st Accounts Title Cash Accounts Receivable Teaching Supplies Prepaid Insurance Prepaid Rent Professional Library Accumulated Depreciation Professional library Accumulated Depreciation Equipment Equipment Accounts Payable Salaries Payable Unearned Training Fees Common Stock Retained Earnings Dividends Tuition Fees earned Sheet1 Sheet2 Sheet3 17,213.00 32,319.00 | $ 73,751.00 185 187 188 189 35,022.00 400.00 8,700.00 15,000.00 52,016.00 190 $ 42,149.00 191 $ 121 577 00 Ready Average: 29173.78238 Count: 554 Sum: 5630540 B OU 100% 0 + 15:52 SA AVENG 04-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut - General 1 Wrap Text Merge & Center 1 - 3 LE E Copy Paste Format Painter Clipboard Autosum * Times New Rom - 11 - A A BI U - ->-A Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells E F G H I J K L $ A1 ΓΔ Α 182 183 184 185 D 17,213.00 32,319.00 $ 73,751.00 186 187 188 35.022.00 400.00 8.700.00 15,000.00 52,016.00 189 190 $ 42,149.00 Accumulated Depreciation Professional library Accumulated Depreciation Equipment Equipment Accounts Payable Salaries Payable Unearned Training Fees Common Stock Retained Earnings Dividends Tuition Fees earned Training Fees earned Depreciation Expenses-Professional Library Depreciation Expenses-Equipment Salaries Expenses Insurance Expenses Rent Expenses Teaching Supplies Expenses Advertisement Expenses Utilities Expenses Total $ $ 1.21,577.00 45,840.00 193 194 195 196 197 $ $ $ $ $ $ $ $ | $ 7,729.00 15,458.00 50,979.00 3,864.00 25,296.00 7,187.00 7,376.00 5,901.00 3.28.087.00 198 199 $ 3,28,087.00 200 201 202 2033a) 204 205 W Ready Wells Technical Institute Income Statement December 31st Sheet1 Sheet2 Sheet30 Average: 29173.78238 Count: 554 Sum: 5630540 B OU 100% 0 + 15:52 SA AVENG 04-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut ♡ General General - Wrap Text Merge & Center - 1 is 1 - Times New Rom - 11 - A A BI U - ->-A 3 LE E Copy Paste Format Painter Clipboard Autosum * an insert Delete Format 9 % 8... Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format & clear Fill 2 Clear Sort & Find & Filter Select Editing the select Font Alignment Number Cells C D E F G H I к 203 204 206 $ $ 1,21,577.00 45,840.00 $ 1,67,417.00 210 J224 fi в Wells Technical Institute Income Statement December 31st, Revenue: Tuition Fees earned Training Fees earned Total Revenue=(A) Expenses: Salaries Expenses Insurance Expenses Rent Expenses Teaching Supplies Expenses Advertisement Expenses Utilities Expenses Depreciation Expenses-Professional Library Depreciation Expenses-Equipment Total Expenses=(B) Net Income=(A)-(B) 211 212 213 214 $ $ $ 50.979.00 3,864.00 25,296.00 7.187.00 7,376.00 5.901.00 7,729.00 15,458.00 215 $ $ 218 219 $ 1,23,790.00 43,627.00 222 224 Wells Technical Institute Statement of Retained Earnings December 31st Beginning Retained Earnings TAdd: Net Income Sheet1 Sheet2 Sheet30 225 226 $ $ 52,016.00 43.627.00 Ready 3O 100% 0 + 15:53 gA A O ENG 04-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut ♡ General 1 - Wrap Text Merge & Center 1 Forondate - LE E Copy Paste Format Painter Clipboard 3 Times New Rom - 11 - A A BI U - ->-A Autosum * 9 insert Delete Format % 8... Cell Styles Insert Delete Format Conditional Format Formatting as Table Styles Fill 2 Clear 2 clear Sort & Find & Filter Select Editing se Font Alignment Number Cells 1224 fic А E F G H I к 222 223 Wells Technical Institute Statement of Retained Earnings December 31st Beginning Retained Earnings Add: Net Income 225 $ $ $ $ $ 52,016.00 43,627.00 95,643.00 -42,149.00 53,494.00 Less: Diviedend Ending Retained Earnings 229 230 235 236 237 Wells Technical Institute Balance Sheet December 31st Assets Current Assets Cash Accounts Receivable Teaching Supplies Prepaid Insurance Total Current Assets Property,Plant and Equipment Professional Liabrary Less: Accumulated Depreciation-Professional Liabrary Equipment Less: Accumulated Depreciation-Equipment Sheet1 Sheet2 Sheet3 $ $ $ $ 27,396.00 14,100.00 3,349.00 11,942.00 238 239 $ 56,787.00 240 241 242 14,397.00 243 244 245 $ $ $ $ 31,610.00 -17,213.00 $ 73,751.00 -32.319.00 $ 41.432.00 Ready O 100% + 15:53 gA A O ENG 04-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE E Copy Paste Format Painter Clipboard Autosum * Times New Rom - 11 - A A BI U - ->-A Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells J224 foc A E F G H I к 233 235 236 $ $ $ $ 27,396.00 14,100.00 3,349.00 11,942.00 56,787.00 240 241 14,397.00 243 244 December 31st Assets Current Assets Cash Accounts Receivable Teaching Supplies Prepaid Insurance Total Current Assets Property Plant and Equipment Professional Liabrary Less: Accumulated Depreciation Professional Liabrary Equipment Less: Accumulated Depreciation Equipment Total Assets Liabilities and Stockholder's Equity Liabilities Accounts Payable Salaries Payable Unearned training fees Total liabilities Stockholder's Equity Common Stock Retained Earnings Tota liabilities and Stockholder's Equity Sheet1 Sheet2 Sheet3 $ $ $ $ 31,610.00 -17,213.00 $ 73,751.00 -32,319.00 $ S 246 41,432.00 1,12,616.00 248 $ | $ $ 35,022.00 400.00 8.700.00 252 44,122.00 253 254 255 256 $ $ 15,000.00 53,494.00 $ S 68,494.00 1,12,616.00 | Ready OO 100% @ U 15:54 04-02-2020 0 gA A O ENG .