! Required information [The following information applies to the questions displayed below.] 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 a. An analysis of WTI's insurance policies shows that $3,996 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,464 are available at year-end. c. Annual depreciation on the equipment is $15,986. d. Annual depreciation on the professional library is $7,993. e. On September 1, WTI agreed to do five training courses for a client for $2,500 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 $12,500 cash in advance for all five training courses on September 1, and WTI credited Unearned Revenue. f. 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, $13,403 of the tuition revenue has been earned by WTI. g. 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. h. The balance in the Prepaid Rent account represents rent for December. Cash Accounts receivable Teaching supplies WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals Debit Credit $ 27,547 0 10,594 15,894 2,120 31,784 $ 9,537 100,000 16,954 26,000 0 12,500 25,527 79,000 42,381 108,069 40,261 0 50,858 23,320 0 7,417 5,933 $ 317,848 $ 317,848 Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end. Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 An analysis of WTI's insurance policies shows that $3,996 of coverage has expired. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet 1 2 3 45678 An inventory count shows that teaching supplies costing $3,464 are available at year-end. Note: Enter debits before credits. Transaction b. General Journal Debit Credit > Record entry Clear entry View general journal Journal entry worksheet 12 3 4 5678 Annual depreciation on the equipment is $15,986. Note: Enter debits before credits. Transaction C. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet > 1 2 3 60 5 6 7 8 Annual depreciation on the professional library is $7,993. Note: Enter debits before credits. Transaction d. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 5 6 7 8 On September 1, WTI agreed to do five training courses for a client for $2,500 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 $12,500 cash in advance for all five training courses on September 1, and WTI credited Note: Enter debits before credits. Transaction e. General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet 1 2 3 4 50 6 7 8 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, $13,403 of the tuition revenue has been earned by WTI. Note: Enter debits before credits. Transaction f. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 456 7 8 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. Note: Enter debits before credits. Transaction g. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4567 8 The balance in the Prepaid Rent account represents rent for December. Note: Enter debits before credits. Transaction h. General Journal Debit Credit Record entry Clear entry View general journal