GLO302 - Based on Problem 3-3A LO P1, P2, P3, P4, P5, P6 Garcia Technical Institute (GTI), a school owned by Jose Garcia, provides training to individuals who pay tuition directly to the school. GTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2018, is found on the trial balance tab. GTI 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. a. An analysis of GTI's insurance policies shows that $2,550 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 $6,400. d. Annual depreciation on the professional library is $12,200. e. On November 1, GTI 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. f. On October 15, GTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $8,000 of the tuition has been earned by GTI. 9. GTI's 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. h. The balance in the Prepaid Rent account represents rent for December. General General Income St Retained Requirement Impact on Trial Balance Balance Sheet Journal Ledger Statement Earnings income For transactions ach, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger and trial balance as soon as you dick "record entry" View transaction list View journal entry worksheet No Date Account Title Debit Credit 1 Dec 31 Insurance expense Prepaid insurance 2,550 2,550 Prey 1 of 1 Next