Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO A1, P1, P2, P3

[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. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items athrough h that require adjusting entries on December 31, 2017, follow. Additional Information Items

An analysis of WTI's insurance policies shows that $4,129 of coverage has expired.

An inventory count shows that teaching supplies costing $3,578 are available at year-end 2017.

Annual depreciation on the equipment is $16,515.

Annual depreciation on the professional library is $8,258.

On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,600, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.

On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $5,520 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)

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, 2017
	Debit			Credit
Cash	$	26,642
Accounts receivable		0
Teaching supplies		10,245
Prepaid insurance		15,371
Prepaid rent		2,050
Professional library		30,739
Accumulated depreciationProfessional library				$	9,223
Equipment		71,718
Accumulated depreciationEquipment					16,396
Accounts payable					35,159
Salaries payable					0
Unearned training fees					13,000
T. Wells, Capital					65,169
T. Wells, Withdrawals		40,988
Tuition fees earned					104,516
Training fees earned					38,937
Depreciation expenseProfessional library		0
Depreciation expenseEquipment		0
Salaries expense		49,186
Insurance expense		0
Rent expense		22,550
Teaching supplies expense		0
Advertising expense		7,173
Utilities expense		5,738
Totals	$	282,400		$	282,400

Problem 3-3A Part 2

2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. 2-b. Prepare an adjusted trial balance