Required information 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 tuton directly to the school. WTI also offers training to groups in te locations. WTI nally records prepaid expenses and unearned revenues in balance sheet accounts. Its unad usted trial balance as o December 31 follows along with descriptions of items a through that require adjusting entries on December 31 Additional Information Items a. An analysis of WT's Insurance policies shows that $3.500 of coverage has expired b. An Inventory count shows that teaching supples costing $3.120 are available at year-end. C. Annual depreciation on the equipment is $14,400. d. Annual depreciation on the professional librarys $7.200. e. On September 1, WTI agreed to do five courses for a client for $2.500 each. Two courses w start mediately and finish before the end of the year, Three Courses will not begin unt next year. The client paid $12.500 cash in advance for all five courses on September 1, and WTI credited Uneamed Training Fees f. On October 15, WTI agreed to teach a four- month class beginning Immediately or an execut ve with payment due at the end of the class. At December 31, $11,450 of the tuition has been earned by WTL 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 Credit $ 9,171 16,303 27,000 WELLS TECHNICAL INSTITURE Unadjusted Trial Balance December 31 Debit Call $ 26,491 Accounts receivable Teaching supplies 10, 187 Prepaid insurance 15,284 Prepaid rent 2,039 Professional library 30,565 Accumulated depreciation Professional Library Equipment 99,000 Accumulated depreciation Equipment Accounts payable Salaries payable Unearned training fees Common stock Retained earnings Dividends 40,755 Tuition fees earned Training fees earned Depreciation expense Professional Library Depreciation expense Equipment Salaries expense 48,907 Insurance expense Rent expense 22,429 Teaching supplies expense Advertising expense 7. 122 Utilities expense 5.706 Totals $308.495 12.500 23, 880 77.000 103,924 38,712 $308,495 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 2 3 4 5 6 7 8 An analysis of WTI's insurance policies shows that $3,600 of coverage has expired. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 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
