Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below Wells Technical Institute (WTD), 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 itens a through hthat require adjusting entries on December 31, 2017, follow. Additional Information ltems a. An analysis of WTI's insurance policies shows that $3,335 of coverage has expired b. An inventory count shows that teaching supplies costing $2,891 are available at year-end 2017 c. Annual depreciation on the equipment is $13,342 d. Annual depreciation on the professional library is $6,671. e. 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 $2,400, 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. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,161 tuition per 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 h. The balance in the Prepaid Rent account represents rent for December 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) day for each employee.

Explanation / Answer

1.Table showing adjustment journal entries.

2. Adjusted trial balance as on dec 31, 2017

3.Income statement as for the year 2017.

4. statement showing owner's equity Wells technical institute statement of retained earnings for the year ended 31 dec 2017 Retained earning on 31 dec 2016 53539 Add: net income 41115 94654 Less: dividend 41220 Retained earning on 31 dec 2017 53434

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