For Journal entries 1 through 12 select the letter of the explanation that most closely describes it in the space beside each entry. You can use letters more than once. A. To record receipt of unearned revenue. B. To record this period's earning of prior unearned revenue. C. To record payment of an accrued expense. D. To record receipt of an accrued revenue. E. To record an accrued expense. F. To record an accrued revenue. G. To record this period's use of a prepaid expense. H. To record payment of a prepaid expense. I. To record this period's depreciation expense. Journal Entries Credit Entry 1 Explanation Salaries Payable Cash Debit 2.300 2.300 2 Prepaid Rent Cash 3,900 3,900 3 3,200 Salaries Expense Salaries Payable 3,200 4 3,600 Interest Receivable Interest Revenue 3,600 5 1,200 Cash Accounts Receivable (from consulting) 1.200 4,700 Cash Unearned Professional Fees 4,700 7 8,200 Cash Interest Receivable 6.200 8 4,100 Rent Expense Prepaid Rent 4,100 9 8.900 Interest Expense Interest Payable 8.900 10 7.100 Depreciation Expense Accumulated Depreciation 7.100 11 2.500 Unearned Professional Fees Professional Fees Eamed 2,500 12 1.100 Insurance Expense Prepaid Insurance 1,100 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 uneared 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 $3.600 of coverage has expired. b. An Inventory count shows that teaching supplies costing $3,120 are available at year-end c. Annual depreciation on the equipment is $14.400. d. Annual depreciation on the professional library is $7.200. e. On September 1, WTI agreed to do five courses for a client for $2700 each. Two courses will start Immediately and finish before the end of the year. Three courses will not begin until next year. The client pald $13.500 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees. 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. $10.950 of the tuition has been earned by WTI. 9. 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 Credit Debit $ 26,944 0 18,362 15,545 2,073 31,688 $ 9,328 1ee,eee Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation Professional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearned training fees Connon stock Retained earnings Dividends Tuition fees earned Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 16,582 25,000 3 13,5ee 28,577 75,eee 41,452 1e5, 701 39,379 49,743 22,803 7,254 5,883 $ 313,867 $313,067 On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1 Nozomi invested $32,888 cash and computer equipment worth $40,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,480 cash for the first month's (April) rent. 3 The company purchased $1,700 of office supplies for cash. 10 The company paid $2,800 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,300 cash for two weeks' salaries earned by employees. 24 The company collected $18,eee cash for commissions earned. 28 The company paid $1,380 cash for two weeks' salaries earned by employees. 29 The company paid $350 cash for minor repairs to the company's computer. 38 The company paid $1,35e cash for this month's telephone bill. 38 The company paid $1,500 cash in dividends. The company's chart of accounts follows: 181 Cash 186 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation-Computer Equip. 289 Salaries Payable 387 Common Stock 318 Retained Earnings 319 Dividends 485 Commissions Earned 612 Depreciation Expense-Computer Equip. 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 981 Income Summary Use the following Information: a. Prepaid Insurance of $156 has expired this month. b. At the end of the month. $800 of office supplies are still available. c. This month's depreciation on the computer equipment is $300. d. Employees earned $520 of unpaid and unrecorded salaries as of month-end e. The company earned $2,250 of commissions that are not yet billed at month-end. Required: 1. & 2. Prepare Journal entries to record the transactions for April and post them to the ledger accounts In Requirement 6b. The company records prepa and uneared items in balance sheet accounts. 3. Using account balances from Requirement 66. prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30. 5b. Prepare the statement of retained earnings for the month of April 30. 5c. Prepare the balance sheet at April 30. 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Req 4 Ad) Entries Req 4 Adj Trial Bal Req 5A Req 5B Reg 5C Reg 6A Req 6B GL Req 7 Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts