Required information Wells Technical Institute, a school owned by Tristan Wells, provides training to individuals who pay tuition directly to the school. Wells Technical also offers training to groups in off site locations. Wells initially records prepaid expenses and unearned revenues in balance sheet accounts. It's 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 Wells Technical insurance policies shows that $3,203 of coverage has expired.

b. An inventory count shows that teaching supplies costing $2,776 are available at year end .

c. Annual depreciation on the equipment library is $6,407.

d. Annual depreciation on the professional Library is $6,407.

e. On September 1,Wells Technical agreed to do five courses for a client for $2,800 each. Two courses will start immediately and finish before the end of the year. The courses will not begin until next year. The client paid $14.000 cash in advance for all five courses on September 1 and Wells Technical credited unearned Training fees.

f. On October 15, Wells Technical agreed to teach a four month class (beginning immediately) for an executive with payment due at the end of the class. At December 31,$8,750 of the tuition has been earned by Wells Technical.

g. Wells Technical 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.

Required: 1. Prepare the necessary adjusting journal entries for items A through H. Assume that adjusting entries are made only at year end.

WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Credit Debit $ 26, 340 0 10,129 15,197 2,027 30, 391 $ 9,119 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned training fees T. Wells, Capital 1. Wells, Withdrawals Tuition fees earned Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment 70,903 16, 210 33,612 0 14,000 64,431 40,523 103,332 38,496 Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense 48,628 0 22, 297 0 7,092 5,673 $ 279,200 Totals $279,200