WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Credit $ Debit 26,340 0 10,129 15,197 2,027 30,391 $ 9, 119 102,000 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 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 Totals 16,210 24,000 0 13,500 20,640 85,000 40,523 103,332 38,496 0 48,628 0 22,297 0 7,092 5,673 $ 310,297 $310, 297 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. 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 Items a. An analysis of WTI's insurance policies shows that $3,864 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,349 are available at year-end. C. Annual depreciation on the equipment is $15,458. d. Annual depreciation on the professional library is $7,729. e. On September 1, WTI agreed to do five courses for a client for $2,700 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 $13,500 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees. 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, $12,250 of the tuition 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. Cash 26,340 Equipment 102,000 Unadj. Bal. Unadj. Bal. Adj. Bal. 26,340 Adj. Bal. 102,000 Accounts Receivable Accumulated Depreciation Equipment Unadj. Bal. Unadj. Bal. 12,250 Adj. Bal. 12,250 Adj. Bal. Accounts Payable Teaching Supplies 10,129 Unadj. Bal. Unadj. Bal. Adj. Bal. 10,129 Adj. Bal. 0 Salaries Payable Unadj. Bal. Prepaid Insurance 15,197 Unadj. Bal. 3,864 Adj. Bal. 11,333 Adj. Bal. Prepaid Rent Unearned Training Fees Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. O Common stock Professional Library 30,391 Unadj. Bal. Unadj. Bal. Adj. Bal. 30,391 Adj. Bal. 0 Accumulated DepreciationProfessional Library Unadj. Bal. FITI HILI HTETIT Retained earnings Unadj. Bal. Adj. Bal. AdjBal. 0 Tuition Fees Earned Dividends Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. 0 Training Fees Earned Rent Expense Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. Depreciation Expense Professional Library Teaching Supplies Expense Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. Depreciation Expense-Equipment Advertising Expense Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. 0 Salaries Expense Utilities Expense Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. Insurance Expense Unadj. Bal. Adj. Bal