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. Its unadjusted trial balance as of December 31, 2013, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2013, follow. Additional Information Items a. An analysis of WTI's insurance policies shows that $3,100 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,500 are available at year-end 2013. c. Annual depreciation on the equipment is $14,600. d. Annual depreciation on the professional library is $8,600. e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $3,900, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2014. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,400 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) g. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $240 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, 2013 Debit Credit Cash $ 48,000 Accounts receivable 0 Teaching supplies 9,400 Prepaid insurance 13,400 Prepaid rent 4,400 Professional library 49,000 Accumulated depreciationProfessional library $ 11,400 Equipment 94,000 Accumulated depreciationEquipment 16,400 Accounts payable 41,400 Salaries payable 0 Unearned training fees 19,500 Common stock 24,000 Retained earnings 94,000 Dividends 64,000 Tuition fees earned 140,700 Training fees earned 54,000 Depreciation expenseProfessional library 0 Depreciation expenseEquipment 0 Salaries expense 64,000 Insurance expense 0 Rent expense 40,000 Teaching supplies expense 0 Advertising expense 7,400 Utilities expense 7,800 Totals $ 401,400 $ 401,400 2.value: 8.00 pointsRequired information 1. Post the balance from the unadjusted trial balance and the adjusting entries to the T-accounts. 2. Prepare the necessary adjusting journal entries for items a through h. ReferenceseBook & Resources WorksheetLearning Objective: 03-A1 Explain how accounting adjustments link to financial statements.Learning Objective: 03-P2 Explain and prepare an adjusted trial balance. Difficulty: 3 HardLearning Objective: 03-P1 Prepare and explain adjusting entries.Learning Objective: 03-P3 Prepare financial statements from an adjusted trial balance. 3.value: 7.00 pointsRequired information Required: 3. Prepare the adjusted trial balance. 4.value: 7.00 pointsRequired information 4.1 Prepare Wells Technical Institute's income statement for the year 2013. 4.2 Prepare a statement of retained earnings for the year 2013. 4.3 Prepare Wells Technical Institute's balance sheet as of December 31, 2013.