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 $3,468 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,006 are available at year-end. c. Annual depreciation on the equipment is $13,871. d. Annual depreciation on the professional library is $6,936. e. On September 1, WTI agreed to do five training courses for a client for $2,500 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 $12,500 cash in advance for all five training courses on September 1, and WTI credited Unearned Revenue. 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, $10,798 of the tuition revenue 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. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Cash Accounts receivable Teaching supplies Debit $ 26,340 Credit 10,129 Prepaid insurance 15,197 Prepaid rent 2,027 Professional library 30,391 Accumulated depreciation-Professional library $ 9,119 Equipment 97,000 Accumulated depreciation-Equipment 16,210 Accounts payable 26,000 Salaries payable 0 Unearned revenue 12,500 T. Wells, Capital 99,640 T. Wells, Withdrawals 40,523 Tuition revenue 103,332 Training revenue 38,496 Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense 48,628 Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 22,297 7,092 5,673 $ 305,297 $ 305,297 Cash Accounts receivable Teaching supplies Prepaid insurance Debit $ 28,151 11,048 3,006 12,774 Credit Prepaid rent Professional library 32,481 Accumulated depreciation-Professional library $ 16,682 Equipment 102,000 Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue T. Wells, Capital T. Wells, Withdrawals 31,196 26,000 400 7,200 27,964 Tuition revenue 121,486 Training revenue 45,943 Depreciation expense-Professional library 6,936 Depreciation expense-Equipment 13,871 Salaries expense 52,372 Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 3,468 25,992 7,820 7,579 6,063 $ 313,561 $ 276,871 Unadjusted Balance Adjusted Balance Cash Equipment Unadjusted Balance Adjusted Balance Accumulated Depreciation-Equipment Accounts Receivable. Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Teaching Supplies Accounts Payable Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance 0 Prepaid Insurance Salaries Payable Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Prepaid Rent Unearned Revenue Indiinted Dal endietad Delane Prepaid Rent Unadjusted Balance Unadjusted Balance Unearned Revenue Adjusted Balance Adjusted Balance 0 Professional Library T. Wells, Capital Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Accumulated Depreciation-Professional Library T. Wells, Withdrawals Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Tuition Revenue Rent Expense Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Training Revenue Teaching Supplies Expense Inadinster Ralance Inadiceted Ralance Training Revenue Unadjusted Balance Teaching Supplies Expense Unadjusted Balance Adjusted Balance Adjusted Balance Depreciation Expense-Professional Library Advertising Expense Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Depreciation Expense-Equipment Utilities Expense Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance 0 Salaries Expense Insurance Expense Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance Req 2A Req 28 > 0