2 Required information Part 1 of 3 01:27:11 [The following information applies to the questions displayed below.] Wells Technical Institute (WT) 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 Items a. An analysis of WTI's insurance policies shows that $3,468 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,006 are available at year-end. c. Annual depreciation on the equipment is $13,871. d. Annual depreciation on the professional library is $6,936. e. On September 1, WTI agreed to do five training courses for a client for $2,300 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 $11,500 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, $11,298 of the tuition revenue 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 Unadjusted Trial Balance: December 31 Cash Accounts receivable Debit $ 26,491 Credit 0 Teaching supplies 10,187 Prepaid insurance 15,284 Prepaid rent 2,039 Professional library: 30,565 Accumulated depreciation-Professional library $9,171 Equipment 96,000 Accumulated depreciation-Equipment 16,303 Accounts payable 26,000 Salaries payable 0 Common stock Unearned revenue Retained earnings Dividends Tuition revenue 11,500 15,880 84,000 40,755 103,924 M Question 2-Ch 3 Quiz (523) Due Feb 8-Connect C[The following information applies to the q Quiz (S23) Due Feb 8 i Saved WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit Credit Cash Accounts receivable Teaching supplies $ 26,491 10,187 Prepaid insurance 15,284 of 3 Prepaid rent 2,039 Professional library Accumulated depreciation-Professional library 30,565 $ 9,171 Equipment 96,000 Accumulated depreciation-Equipment 16,303 1:26:57 Accounts payable 26,000 Salaries payable Unearned revenue Common stock 11,500 15,880 Retained earnings Dividends. Tuition revenue Training revenue Depreciation expense-Equipment Salaries expense Insurance expense Rent expense 84,000 40,755 103,924 38,717 Depreciation expense-Professional library 0 48,907 22,429 Teaching supplies expense Advertising expense Utilities expense Totals e 7,132 5,706 $ 305,495 $ 385,495 Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are mad View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 An analysis of WTI's insurance policies shows that $3,468 of coverage has expired.