Additional Information

$*$ An analysis of the Institute's insurance policies shows that $$9,500$ of coverage has expired.

$*$ An inventory count shows that teaching supplies costing $$20,000$ are available at year$-$end.

$*$ Annual depreciation on the equipment is $$5,000.$

$*$ Annual depreciation on the professional library is $$2,400.$

$*$ On November $1,$ the Institute agreed to do a special two$-$month training course $($starting immediately$)$ for a client. The contract calls for a $$14,300$ monthly fee, and the client paid the two months' training fees in advance. When the cash was received, the Unearned Revenue account was credited.

$*$ On October $15,$ the Institute agreed to teach a four$-$month class $($beginning immediately$)$ to an executive with payment due at the end of the class. At December $31,$ $$5,750$ of the tuition revenue has been earned by the Institute.

$*$ 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.

$*$ 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 retained earnings for the year, and prepare its balance sheet as of December Check $(2$e$)$ Cr$.$ Training Revenue, $$28,600(2$f$)$ Cr$.$ Tuition Revenue, $$5,750(3)$ Adj. trial balance totals, $$344,600(3)$ Adj. trial balance totals, $$344,600$