1 1 Part 1 of 3 Required information The following information applies to the questions displayed below) Wells Technical Institute (WTI), 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. 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 that require adjusting entries on December 31, Additional Information Items a. An analysis of WTIS 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, WT agreed to do five 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 courses on September 1, and WTI credited Unearned Training Fees 1. 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. December 31, $7,500 of the tuition has been earned by WTI. 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 Usadjusted Trial balance Decay Credit 0 34.000 Mounts receivable Teachine upotos 3,000 h. The balance in the Prepaid Rent account represents rent for December 1 Credit Part of 3 $ 34,000 0 3,000 12.000 3,000 35,000 $ 10,000 80.000 WELLS TECHNICAL INSTITUTI Unadjusted Trial Balance December 31 Cash Accounts receivable Teaching wupplies Prepaid Lowrande Prepaid rent Professional library Accumulated depreciation Professional library Equipment Accumulated depreciation Equipment recounts payable Salaries payable Unearned training fees 1. Well, Capital T. Well, withdrawal Tuition fees earned Training toes warned Depreciation expense-Professional Library Depred con expense-Equipment salaries expense Insurance Rant expense Teaching supplies sense Advertising expens Utilities expense Totais 15,000 26,000 0 12.500 90,000 50,000 123.900 40.000 50.000 0 33,000 0 6.000 409 $319,400 S317, 400 Required: 1. Prepare the necessary adiusting lournal entries for items a through Assume that alusting entries are made onlv at verend Required information 1 Part 10 1 Journal entry worksheet