GL0302 (Algo) - Based on Problem 3-3A LO P1, P2, P3, P4, P5

Strods Technical Institute (STI), a school owned by Anita Strods, provides training to individuals who pay tuition directly to the school. STI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2022, is found on the trial balance tab. STI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31 follow.

An analysis of STIs insurance policies shows that $2,900 of coverage has expired.

An inventory count shows that teaching supplies costing $3,920 are available at year-end.

Annual depreciation on the equipment is $4,000.

Annual depreciation on the professional library is $7,400.

On November 1, STI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $3,000, and the client paid the first five months fees in advance. When the cash was received, the Unearned Training Fees account was credited.

On October 15, STI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $3,000 of the tuition has been earned by STI.

STIs two employees are paid weekly. As of the end of the year, two days salaries have accrued at the rate of $160 per day for each employee.

The balance in the Prepaid Rent account represents rent for December.