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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

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

An analysis of WTI's insurance policies shows that $4,129 of coverage has expired.

An inventory count shows that teaching supplies costing $3,578 are available at year-end.

Annual depreciation on the equipment is $16,515.

Annual depreciation on the professional library is $8,258.

On September 1, WTI agreed to do five training courses for a client for $2,800 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 $14,000 cash in advance for all five training courses on September 1, and WTI credited Unearned Revenue.

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, $13,300 of the tuition revenue has been earned by WTI.

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.

The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31
Debit Credit
Cash $ 26,491
Accounts receivable 0
Teaching supplies 10,187
Prepaid insurance 15,284
Prepaid rent 2,039
Professional library 30,565
Accumulated depreciationProfessional library $ 9,171
Equipment 101,000
Accumulated depreciationEquipment 16,303
Accounts payable 26,000
Salaries payable 0
Unearned revenue 14,000
T. Wells, Capital 102,380
T. Wells, Withdrawals 40,755
Tuition revenue 103,924
Training revenue 38,717
Depreciation expenseProfessional library 0
Depreciation expenseEquipment 0
Salaries expense 48,907
Insurance expense 0
Rent expense 22,429
Teaching supplies expense 0
Advertising expense 7,132
Utilities expense 5,706
Totals $ 310,495 $ 310,495

2-a. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts.

2-b. Prepare an adjusted trial balance.

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