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 $2,939 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,547 are available at year-end. c. Annual depreciation on the equipment is $11,756. d. Annual depreciation on the professional library is $5,878. e. On September 1, WTI agreed to do five training courses for a client for $2,700 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 $13,500 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, $7700 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 Debit Credit WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Credit Debit $ 28, 151 0 10,826 16,242 2,166 32,481 $ 9,746 97,000 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue T. Wells, Capital T. Wells, Withdrawals 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 17,325 26,000 0 13,500 101,464 43,310 110,438 41,143 0 0 51,972 0 23, 826 0 7,579 6,063 $ 319,616 $ 319,616 Required information Cash Unadjusted Balance Equipment Unadjusted Balance Adjusted Balance Adjusted Balance Accounts Receivable Unadjusted Balance Accumulated Depreciation Equipment Unadjusted Balance Adjusted Balance Adjusted Balance Teaching Supplies Accounts Payable Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance Prepaid Insurance Salaries Payable Urusted Balance Unadjusted Balance Required information Prepaid Rent Unadjusted Balance Unearned Revenue Unadjusted Balance Adjusted Balance Adjusted Balance Professional Library Unadjusted Balance T. Wells, Capital Unadjusted Balance Adjusted Balance Adjusted Balance Accumulated Depreciation Professional Library Unadjusted Balance T. Wells, Withdrawals Unadjusted Balance Adjusted Bilance Adjusted Balance Tuition Revenue Rent Expense Unadjusted Balance Unadjusted Balance Training Revenue Unadjusted Balance Teaching Supplies Expense Unadjusted Balance Adjusted Balance Adjusted Balance Depreciation Expense-Professional Library Unadjusted Balance Advertising Expense Unadjusted Balance Adjusted Balance Adjusted Balance Utilities Expense Depreciation Expense-Equipment Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance Salaries Expense Insurance Expense Unadjusted Balance Unadjusted Balance Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearned revenue T. Wells, Capital T. Wells, Withdrawals Tuition revenue Training revenue Depreciation expense Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertisina expense Salaries payable Unearned revenue T. Wells, Capital T. Wells, Withdrawals 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 WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 WELLS TECHNICAL INSTITUTE Statement of Owner's Equity For Year Ended December 31 T. Wells, Capital, December 31 prior year Add: Investments by owner 0 T. Wells, Capital, December 31 current year WELLS TECHNICAL INSTITUTE Balance Sheet December 31