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 $2,400 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 $12,000 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, $8,450 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 Balance December 31 Credit Cash Debit $ 27,698 0 10,652 15,981 2,132 31,958 $ 9,589 104,000 17,046 25,000 0 12,000 110,267 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 42,613 108,661 40,482 0 0 51,136 0 23,452 0 7,457 5,966 $ 323,045 $ 323,045 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 An analysis of WTI's insurance policies shows that $2,939 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 An inventory count shows that teaching supplies costing $2,547 are available at year-end. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Record entry Clear entry View general Journal 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 Annual depreciation on the equipment is $11,756. Note: Enter debits before credits. Transaction General Journal Debit Credit c. 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 Annual depreciation on the professional library is $5,878. Note: Enter debits before credits. General Journal Debit Credit Transaction d. 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 1 2 3 4 5 6 7 8 > On September 1, WTI agreed to do five training courses for a client for $2,400 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 $12,000 cash in advance for all five training courses on September 1, and WTI credited Note: Enter debits before credits. General Journal Debit Credit Transaction e. 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 On October 15, WTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end the class. At December 31, $8,450 of the tuition revenue has been earned by WTI. Note: Enter debits before credits. Transaction General Journal Debit Credit f. 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 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 General Journal Debit Credit g. 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 The balance in the Prepaid Rent account represents rent for December. Note: Enter debits before credits. General Journal Debit Credit Transaction h. Record entry Clear entry View general Journal