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Wells Technical Institute (WT) a school owned by Tristana Wells, provides training to individuals who pay tultton dtrectly to the school. WTI also offers training

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Wells Technical Institute (WT) a school owned by Tristana Wells, provides training to individuals who pay tultton dtrectly to the school. WTI also offers training to groups in off-site locations. Its unadjusted tnal balance as of December 31, 2017 follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts Descriptions of items a through that require adjusting entries on December 31, 2017, follow. Additional Information Items 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 2017 c. Annual depreciation on the equipment is $13,200. d. Annual depreciation on the professional library is $7.200 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 $2.500, 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 2018 1. On October 15, WTI agreed to teach a four-month class (beginning Immediately) for an individual for $3,000 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 $100 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, 2017 Credit $ Cash Accounts receivable Teaching supplies Prepaid insurance brans Debit 34.ee B 8.00 12, 2 Required information a Insurance expense 2,400 Prepaid insurance 2.400 2 b. 5.200 Teaching supplies expense Teaching supplies 5.200 13,200 3 c. Depreciation expense Equipment Accumulated depreciation Equipment 13,200 7.200 4 d. Depreciation expense-Professional library Accumulated depreciation Professional library 7200 40,000 5 Unearned training fees Training fees earned 40.000 7,500 B f. Accounts receivable Tuition fees earned 7.500 50.000 7 9 Salaries expense Salaries payable 50.000 3

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