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Required information [The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to

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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 $3,732 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,235 are available at year-end. c. Annual depreciation on the equipment is $14,929. d. Annual depreciation on the professional library is $7.464. e. On September 1, WTI agreed to do five training 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 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, $11,850 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, WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Cash Accounts receivable Teaching supplies Debit $ 26,944 Credit 0 10,362 Prepaid insurance 15,545 Prepaid rent 2,073 Professional library. 31,088 Accumulated depreciation-Professional library $ 9,328 Equipment 98,000 Accumulated depreciation-Equipment 16,582 Accounts payable 22,000 Salaries payable Unearned revenue 13,000. T. Wells, Capital 105,077 T. Wells, Withdrawals 41,452 Tuition revenue Training revenue 105,701 39,379 Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Advertising expense Utilities expense Totals 49,743 0 22,803 Teaching supplies expense 7,254 5,803 $ 311,067 $ 311,067 Required

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