(Solved): Required 1. Prepare T-accounts (representing the ledger) with balances from the unadjusted trial ba ...

Required 1. Prepare T-accounts (representing the ledger) with balances from the unadjusted trial balance. 2. Prepare the necessary adjusting journal entries for items \( a \) through \( h \) and post them to the T-accounts. Assume that adjusting entries are made only at year-end. 3. Update balances in the T-accounts for the adjusting entries and prepare an adjusted trial balance. 4. Prepare Wells Technical Institute's income statement and statement of owner's equity for the year and prepare its balance sheet as of December 31 . The T. Wells, Capital account balance was \( \$ 90,000 \) on December 31 of the prior year, and there were no owner investments in the current year. Chapter 3 Acjusting Accounts for Financial Statements Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who The adjuste pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted tral balance as of December 31 follows, along with descriptions of items a through \( h \) that require adjusting entries on December 31 . Additional Information a. An analysis of WTI's insurance policies shows that \( \$ 2,400 \) of coverage has expired. b. An inventory count shows that teaching supplies costing \( \$ 2,800 \) are available at year-end. c. Annual depreciation on the equipment is \( \$ 13,200 \). d. Annual depreciation on the professional library is \( \$ 7,200 \). e. On September 1. WTI agreed to do five training courses for a client for \( \$ 2,500 \) 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 \( \$ 12,500 \) 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 \( 31, \$ 7,500 \) of the tuition revenue has been earned by WTL. 9. 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.