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

1. An analysis of MTIs insurance policies shows that $2,400 of coverage has expired.
2. An inventory count shows that teaching supplies costing $3,240 are available at year-end.
3. Annual depreciation on the equipment is $5,400.
4. Annual depreciation on the professional library is $10,200.
5. On September 1, MTI agreed to do five courses for a client for $2,600 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 $13,000 cash in advance for all five courses on September 1, and MTI credited Unearned Training Fees.
6. On October 15, MTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $9,500 of the tuition has been earned by MTI.
7. MTIs two employees are paid weekly. As of the end of the year, two days salaries have accrued at the rate of $220 per day for each employee.
8. The balance in the Prepaid Rent account represents rent for December.

For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the drop-down.)

Adjusting entry related to:Account affecting the:Impact on net incomeIncome statementBalance Sheeta. InsuranceInsurance expensePrepaid insuranceb. Teaching suppliesTeaching suppliesc. Depreciation - equipmentDepreciation expense - EquipmentAccumulated depreciation - Equipmentd. Depreciation - libraryDepreciation expense - Professional libraryAccumulated depreciation - Professional librarye. Training feesf. Tuitiong. SalariesSalaries expenseSalaries payableh. RentPrepaid rentTotal impact on income due to adjustments$0Net income before adjustmentsNet income after adjustments0