HWAAPA Wells Technical Institute (WTI) 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

An analysis of WTI's insurance policies shows that $2,542 of coverage has expired.

An inventory count shows that teaching supplies costing $2,204 are available at year-end.

Annual depreciation on the equipment is $10,170.

Annual depreciation on the professional library is $5,085.

On September 1, WTI agreed to do five training courses for a client for $2,400 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 $12,000 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, $6,498 of the tuition revenue has been earned by WTI.

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.

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

WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31
	Debit	Credit
Cash	$ 27,547
Accounts receivable	0
Teaching supplies	10,594
Prepaid insurance	15,894
Prepaid rent	2,120
Professional library	31,784
Accumulated depreciationProfessional library		$ 9,537
Equipment	102,000
Accumulated depreciationEquipment		16,954
Accounts payable		24,000
Salaries payable		0
Unearned revenue		12,000
Common stock		28,027
Retained earnings		81,000
Dividends	42,381
Tuition revenue		108,069
Training revenue		40,261
Depreciation expenseProfessional library	0
Depreciation expenseEquipment	0
Salaries expense	50,858
Insurance expense	0
Rent expense	23,320
Teaching supplies expense	0
Advertising expense	7,417
Utilities expense	5,933
Totals	$ 319,848	$ 319,848

WELLS TECHNICAL INSTITUTE
Income Statement
For Year Ended December 31
		$0
		0

WELLS TECHNICAL INSTITUTE
Statement of Retained Earnings
For Year Ended December 31
Retained earnings, December 31 prior year end
	0
Retained earnings, December 31 current year end	$0

WELLS TECHNICAL INSTITUTE
Balance Sheet
December 31
		0
		0
		$0
		0
		0
		$0