Walker Technical Institute (WTI), a school owned by Sarah Walker, 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, 2018, is found on the trial balance tab. 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 follow.

1. An analysis of WTIs insurance policies shows that $2,450 of coverage has expired.
2. An inventory count shows that teaching supplies costing $3,040 are available at year-end.
3. Annual depreciation on the equipment is $6,000.
4. Annual depreciation on the professional library is $11,400.
5. 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 $2,600, and the client paid the first five months fees in advance. When the cash was received, the Unearned Training Fees account was credited.
6. 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, $4,200 of the tuition has been earned by WTI.
7. WTIs two employees are paid weekly. As of the end of the year, two days salaries have accrued at the rate of $220 per day for each employee.
8. The balance in the Prepaid Rent account represents rent for December.

Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on income Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Adjusted General Ledger Account Cash Accounts receivable No. Date Debit Credit Balance No. Date Debit Credit Balance Dec 31 42,200 Dec 31 0 6 Dec 31 10,500 10,500 Teaching supplies Prepaid insurance No. Date Debit Credit Balance No. Date Debit Credit Balance Dec 31 8,300 Dec 31 12,250 9,800 2 Dec 31 7,612 688 1 Dec 31 2,450 Accumulated depreciation - Professional library Equipment No. Debit Credit No. Date Debit Credit Date Dec 31 Dec 31 Balance 22,800 34,200 Balance 60,000 Dec 31 4 11,400 Accumulated depreciation - Equipment Accounts payable No. Debit Credit No. Date Debit Credit Date Dec 31 Balance 12.000 18,000 Balance 33,200 Dec 31 3 Dec 31 6,000 Salaries payable Unearned training fees No. Date Debit Credit Balance No. Date Debit Credit Dec 31 0 Dec 31 Dec 31 Balance 13,000 7,800 7 Dec 31 880 880 5 5,200 Common stock Retained earnings No. Date Debit Credit No. Date Debit Credit Balance 11,000 Balance 81,000 Dec 31 Dec 31 Dividends Tuition fees earned No. Date Debit Credit No. Date Debit Credit Balance Balance 51,800 Dec 31 Dec 31 130,000 Training fees earned Depreciation expense - Professional library No. Date Debit Credit No. Date Debit Credit Balance Dec 31 0 Balance 43,000 48,200 58,700 Dec 31 Dec 31 5 5.200 4 11,400 11,400 Dec 31 Dec 31 6 10,500 Common stock Retained earnings No. Date Debit Credit No. Date Debit Credit Balance Balance 11,000 Dec 31 Dec 31 81,000 Dividends Tuition fees earned No. Date Debit Credit Balance No. Date Debit Credit Balance 130,000 Dec 31 51,800 Dec 31 Training fees earned Depreciation expense - Professional library No. Date Debit Credit No. Debit Credit Balance 43,000 48,200 58,700 Dec 31 Dec 31 Dec 31 Date Dec 31 Dec 31 Balance 0 11,400 5 4 11,400 5,200 10,500 6 Depreciation expense - Equipment Salaries expense No. Date Debit Credit Balance No. Date Debit Credit 0 Dec 31 Dec 31 Dec 31 Balance 51,200 52,080 3 6,000 6,000 7 Dec 31 880 Insurance expense Rent expense No. Debit Credit Balance No. Date Debit Credit Date Dec 31 Dec 31 0 Dec 31 Balance 46,200 48,332 2,450 2,450 8 Dec 31 2,132 Teaching supplies expense Advertising expense Debit Credit No. Date Debit Credit No. Date Balance Balance 0 7,612 Balance 6,150 Dec 31 Dec 31 2 Dec 31 7,612 Utilities expense No. Date Debit Credit Balance 6,700 Dec 31 Walker Technical Institute Trial Balance December 31, 2019 Account Title Debit Credit $ 42.200 10,500 688 9,800 2,068 57.000 34.200 60,000 18.000 33,200 880 7,800 Cash Accounts recelvable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation - Professional library Equipment Accumulated depreciation - Equipment Accounts payable Salaries payable Unearned training fees Common stock Retained earnings Dividends Tuition fees earned Training fees earned Depreciation expense - Professional library Depreciation expense - Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Total 11,000 81.000 51,800 130,000 58,700 11,400 6.000 52,080 2.450 48,332 7,612 6,150 6,700 374,780 $ $ 374,780 Walker Technical Institute Income Statement For Year Ended December 31, 2019 Revenues Tuition fees earned 130,000 Training fees earned 58,700 0 Total revenues $ 188,700 Expenses Depreciation expense - Professional library Depreciation expense - Equipment Salaries expense Insurance expense 11,400 6,000 52,080 2,450 48,332 7,612 6,150 6,700 Rent expense Teaching supplies expense Advertising expense Utilities expense 0 0 Total expenses 140,724 47,976 Net income $ Adjusted Walker Technical Institute Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, December 31, 2019 $ 81,000 Add: Net income 47,976 Less: Dividends (51,800) 77,176 Retained earnings, December 31, 2019 $ Balance Sheet December 31, 2019 Assets Current assets Cash $ 42,200 10,500 Accounts receivable Teaching supplies Prepaid insurance Prepaid rent 1 tttt 688 9,800 2,068 0 Total current assets $ 65,256 $ tt 57,000 (34,200) 22,800 Plant assets Professional library Accumulated depreciation - Professional library Professional library, net Equipment Accumulated depreciation - Equipment Equipment, net Total plant assets Total assets 60,000 (18,000) 42,000 64.800 130,056 $ Liabilities Current liabilities 33,200 Accounts payable Salaries payable Unearned training fees 880 7,800 0 Total liabilities $ 41,880 Equity Common stock 11,000 77,176 Retained earnings Total equity Total Liabilities & Equity 88,176 130,056 $ For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the drop-down.) Show less A Unadjusted Account affecting the: Impact on net income Income statement Balance Sheet Adjusting entry related to: a. Insurance b. Teaching supplies c. Depreciation - equipment d. Depreciation - library e. Training fees f. Tuition g. Salaries h. Rent $ 0 Total impact on income due to adjustments Net income before adjustments Net income after adjustments No Date Account Title Debit Credit 1 Dec 31 Insurance expense 2,450 Prepaid insurance 2.450 2 Dec 31 7,612 Teaching supplies expense Teaching supplies 7,612 3 Dec 31 6,000 Depreciation expense - Equipment Accumulated depreciation - Equipment 6,000 4 Dec 31 Depreciation expense - Professional library 11,400 Accumulated depreciation - Professional library 11,400 5 Dec 31 5,200 Unearned training fees Training fees earned 5,200 6 Dec 31 Accounts receivable 10,500 Training fees earned 10,500 7 Dec 31 Salaries expense 880 Salaries payable 880 8 Dec 31 2,132 Rent expense Prepaid rent 2,132