$[$The following information applies to the questions displayed below.$]$

Wells Technical Institute $($WTI$)$ 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

a$.$ An analysis of WTI's insurance policies shows that $$2,400$ of coverage has expired.

b$.$ An inventory count shows that teaching supplies costing $$2,800$ are available at year$-$end.

c$.$ Annual depreciation on the equipment is $$13,200.$

d$.$ Annual depreciation on the professional library is $$7,200.$

e$.$ On September $1,$ WTI agreed to do five training courses for a client for $$2,500$ each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $$12,500$ 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 $31,$ $$7,500$ 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.the

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

Debit Credit

Accounts receivable

Teaching supplies

Prepaid insurance

Prepaid rent

Professional library

Accumulated depreciation$-$Professional library

Equipment

$$34,000$

$2$nd Trimester Training...

Roms

$$ Prev

$2$ of $7$

Next

WELLS TECHNICAL INSTITUTE

Income Statement

For Year Ended December $31$

$\backslash$table$[[$Revenues$,$Q$,,],[$Tuition revenue,$(1)$:$,123,900x,],[$Training revenue,$0,40,000,],[$Total revenues,,,$$,163,900$

$!$

Required information

$\backslash$table$[[$Expeises$,(,,,],[$Depreciation expense$-$Professional library,$0,7,200,,],[$Depreciation expense$-$Equipment,$0,13,200,,],[$Salaries expense,$,50,000,,],[$Insurance expense,$0,2,400,,],[$Rent expense,$,33,000x,,],[$Teaching supplies expense,$2,2,800,,],[$Advertising expense,$,6,000,,],[$Utilities expense,$0,6,400,,],[$Total expenses,,,,$121,000],[$Net income,,$0,$$$,42,900$