de all balance sheet accounts, even those with zero balances. Cash Accounts receivable Teaching supplies Prepaid insurance WELLS TECHNICAL INSTITUTE Balance Sheet December 31 Assets Liabilities
WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accunulated depreciation-Professional 1ibrary Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue Coman stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipent Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense utilities expense Totals Debit $27,245 10,47815,7192,09731,436 182,00 $9,432 16,76822,000013,00027,55782,000106,88539,820 41,916 106,88539,820 Wells Technical Institute (WTI) 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 ltems a. An analysis of WTI's insurance policies shows that $3,203 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,776 are avallable at year-end. c. Annual depreciation on the equipment is $12,814. d. Annual depreciation on the professional library is $6,407. e. On September 1, WTI agreed to do five training courses for a client for $2.600 each. Two courses wifl start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $13,000 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,$9.250 of the tuition revenue has been earned by WTL. 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. WELLS TECHNICAL INSTITUTE Balance Sheet December 31 Assets
