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 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 $3,864 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,349 are available at year-end. c. Annual depreciation on the equipment is $15,458. d. Annual depreciation on the professional library is $7.729. e. On September 1, WTI agreed to do five training courses for a client for $2,300 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 $11,500 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, $13,250 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. per day for each employee. h. The balance in the Prepaid Rent account represents rent for December. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance. December 31 Cash of 3 Debit Credit $ 26,491 Accounts receivable Teaching supplies 0 10,187 Prepaid insurance 15,284 Prepaid rent 2,039 Professional library 30,565 Accumulated depreciation-Professional library $9,171 Equipment 103,000 Accumulated depreciation-Equipment 16,303 Accounts payable 24,000 Salaries payable 8 Unearned revenue 11,500 T. Wells, Capital T. Wells, Withdrawals Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Advertising expense Utilities expense Totals Teaching supplies expense 108,880 40,755 103,924 38,717 48,907 e 22,429 0 7,132 5,706 $ 312,495 $ 312,495 Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only 1 Required information Part 1 of 3 View transaction list Journal entry worksheet An analysis of WTI's insurance policies shows that $3,864 of coverage has expired. Note: Enter debits before credits. Transaction General Journal Debit Credit a Insurance expense 3,864 Prepaid insurance 3,864 Record entry Clear entry View general journal