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 $2,939 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,547 are available at year-end. c. Annual depreciation on the equipment is $11,756. d. Annual depreciation on the professional library is $5,878. e. On September 1, WTI agreed to do five training courses for a client for $2,300 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 $11,500 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, $8,700 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. Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue T. Wells, Capital T. Wells, Withdrawals Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals Debit $ 26,793 Credit 0 10,304 15,458 2,062 30,913 $ 9,275 100,000 16,489 21,000 0 11,500 109,351 41,220 105,108 39,158 0 0 49,464 0 22,682 0 7,214 5,771 $ 311,881 $ 311,881 Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end. View transaction list View journal entry worksheet No Transaction General Journal 1 a. Insurance expense Debit Credit 2,939 Prepaid insurance 2,939 2 b. Teaching supplies expense Teaching supplies 7,757 7,757 3 C. Depreciation expense-Equipment Accumulated depreciation-Equipment 11,756 11,756 4 d. Depreciation expense-Professional library 5,878 Accumulated depreciation-Professional library 5,878 5 e. Unearned revenue Training revenue 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. Complete this question by entering your answers in the tabs below. Req 2A Req 2B Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. Unadjusted Balance Cash Unadjusted Balance Equipment Adjusted Balance 0 Adjusted Balance 0 Accounts Receivable Accumulated Depreciation-Equipment Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Teaching Supplies Accounts Payable Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Prepaid Insurance Salaries Payable Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 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 Unadjusted Balance T. Wells, Withdrawals 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 Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Depreciation Expense-Professional Library Advertising Expense 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 Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Depreciation Expense-Professional Library Advertising Expense Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance Depreciation Expense-Equipment Utilities Expense Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Salaries Expense Insurance Expense Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Req 2A Req 2B Prepare an adjusted trial balance. WELLS TECHNICAL INSTITUTE Adjusted Trial Balance Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent December 31 Debit Credit Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue T. Wells, Capital T. Wells, Withdrawals Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals $ 0 $ 0