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 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. c. Annual depreciation on the equipment is $13,200. d. Annual depreciation on the professional library is $7,200. 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, $7,500 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 Debit Credit Cash Accounts receivable Teaching supplies $ 34,000 0 8,000 Prepaid insurance 12,000 Prepaid rent 3,000 Professional library 35,000 Accumulated depreciation-Professional library $ 10,000 Equipment 80,000 Accumulated depreciation-Equipment 15,000 Accounts payable 26,000 Salaries payable 0 Unearned revenue 12,500 T. Wells, Capital T. Wells, Withdrawals Tuition revenue Training revenue Depreciation expense-Equipment Salaries expense Insurance expense 90,000 50,000 123,900 40,000 Depreciation expense-Professional library 0 0 50,000 0 Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 33,000 0 6,000 6,400 $ 317,400 $ 317,400 'roblem 3-3A (Static) Part 2 -a. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. -b. Prepare an adjusted trial balance. Complete this question by entering your answers in the tabs below. 1 a. Insurance expense 2 b. Prepaid insurance Teaching supplies expense Teaching supplies Depreciation expense-Equipment 2,400 2,400 5,200 5,200 3 C. Accumulated depreciation-Equipment 13,200 13,200 4 d. Depreciation expense-Professional library 7,200 Accumulated depreciation-Professional library 7,200 5 e. Unearned revenue Training revenue 6 f. Accounts receivable Tuition revenue 5,000 5,000 7,500 7,500 7 g. Salaries expense 400 Salaries payable 400 8 h. Rent expense Prepaid rent 3,000 3.000 Required information Req 2A Req 2B Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. Cash Equipment Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Accounts Receivable Accumulated Depreciation-Equipment Jnadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance Teaching Supplies Accounts Payable Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance Prepaid Insurance Salaries Payable Unadjusted Balance Unadjusted Balance Prepaid Rent Unadjusted Balance Unadjusted Balance Unearned Revenue Adjusted Balance 0 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 Tuition Revenue Rent Expense Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Training Revenue Teaching Supplies Expense Aujusieu Dai Training Revenue Unadjusted Balance Unadjusted Balance i Teaching Supplies Expense 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 Salaries Expense Insurance Expense Unadjusted Balance Unadjusted Balance 2,400) Adjusted Balance Adjusted Balance 2.400