Watson Technical Institute (WTI), a school owned by Tom Watson, 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 at December 31, 2015, follows. WTI initially records prepaid expenses and unearned revenues in statement of financial position accounts. Descriptions of items a through h that require adjusting entries on December 31, 2015, follow. Additional Information tems a. An analysis of WTI's insurance policies shows that $3,335 of coverage has expired b. An inventory count shows that teaching supplies costing $2,891 are available at year-end 2015. c. Annual depreciation on the equipment is $13,342 d. Annual depreciation on the professional library is $6,671. e. On November 1, Tl agreed to do a special six-month course a client. The contract calls for a monthly fee of $2,200, 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 2016 On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,361 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.) f. g. WTl's two employees are paid weekly. As at 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 WATSON TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2015 Credit Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Debit $ 26,189 0 10,071 15,110 2,015 30.217 $ 9,066 Equipment 70.496 Accounts payable Salaries payable Unearned training fees T. Watson, Capital T. Watson, Withdrawals Tuition fees earned Training fees earned 36,340 0 11,000 64,062 40,291 102.740 38,275 0 0 48,350 0 22,169 0 7,051 Salaries expense Rent expense Teaching supplies expense Advertising expense