Following is the unadjusted trial balance for Alonzo Institute as of December 31, 2017. The Institute provides one-on-one training to individuals who pay tuition directly to the business and offers extension training to groups in off-site locations. Shown after the trial balance are items a through h that require adjusting entries as of December 31, 2017.

Additional Information Items
a. An analysis of the Institute's insurance policies shows that $9,500 of coverage has expired.
b. An inventory count shows that teaching supplies costing $20,000 are available at year-end 2017.
c. Annual depreciation on the equipment is $5,000.
d. Annual depreciation on the professional library is $2,400.
e. On November 1, the Institute agreed to do a special five-month course (starting immediately) for a client. The contract calls for a $14,300 monthly fee, and the client paid the first two months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The last two months' fees will be recorded when collected in 2018.
f. On October 15, the Institute agreed to teach a four-month class (beginning immediately) to an individual for $2,300 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (The Institute's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)
g. The Institute's only employee is paid weekly. As of the end of the year, three days' salaries have accrued at the rate of $150 per day.
h. The balance in the Prepaid Rent account represents rent for December.
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 the company's income statement and statement of owner's equity for the year 2017, and prepare its balance sheet as of December 31, 2017.

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ALONZO INSTITUTE Unadjusted Trial Balance December 31 2017 Debit Credit $ 60,000 0 70,000 19,000 3,800 12,000 3 Cash 4Accounts receivable 5 Teaching supplies aid insurance 7 Prepaid rent 8 Professional library 9Accumulated depreciation-Professional librar $2,500 40,000 20,000 1.200 0 28,600 71,500 11 Accumulated depreciati 12 Accounts 13 Salaries payable 14 Unearned training fees 15 | C. Alonzo. 16 C. Alo 17 Tuition fees earned 18 Training fees earned 19 20 21 Salaries expense 22 Insurance expense 23 Rent expense 24 Teaching supplies expense 25 Advertising expense 26 Utilities expense 27 Totals ble Withdrawals 20,000 129,200 68,000 fessional librar ation ex ation ex 0 0 44,200 29,600 19,000 13,400