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3 Part 1 of 3 14.28 points Print References Wells Technical Institute (WT), a school owned by Tristana Wells, provides training to individuals who

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3 Part 1 of 3 14.28 points Print References Wells Technical Institute (WT), 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 h that require adjusting entries on December 31 Additional Information Items a. An analysis of WT's insurance policies shows that $2,542 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,204 are available at year-end. c. Annual depreciation on the equipment is $10,170 d. Annual depreciation on the professional library is $5,085. 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 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, $6,748 of the tuition revenue has been earned by WTI 9. WT's two employees are paid weekly. As of the end of the year, two days' saleries 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 311 Cash Accounts receivable Teaching supplies Debit $27,698 Credit 0 10,652 Prepaid insurance 15,981 Prepaid rent 2,132 Professional library 31,950 Accumulated depreciation-Professional library $ 9,589 Equipment 101,000 Accumulated depreciation-Equipment 17,046 Accounts payable 26,000 Salaries payable Unearned revenue 11,500 Rent expense Advertising expense Utilities expense Totals 1. Wells, Capital T. Wells, withdrawals Tuition revenue Training revenue Depreciation expense-Equipment Salaries expense Insurance expense Teaching supplies expense 106,767 42,613 108,661 40,482 Depreciation expense-Professional library 51,136 23,452 0 7,457 5,966 $ 320,045 $ 320,045

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