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. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of itemsathroughhthat require adjusting entries on December 31, 2017, follow.

Additional Information Items

1. An analysis of WTI's insurance policies shows that $3,732 of coverage has expired.
2. An inventory count shows that teaching supplies costing $3,235 are available at year-end 2017.
3. Annual depreciation on the equipment is $14,929.
4. Annual depreciation on the professional library is $7,464.
5. 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 $2,800, 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.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,540 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.)
7. 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.
8. The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE

Unadjusted Trial Balance

December 31, 2017 Debit Credit

Cash $27,396

Accounts receivable 0

Teaching supplies10,536

Prepaid insurance15,806

Prepaid rent 2,108

Professional library31,610

Accumulated depreciationProfessional library$9,484

Equipment 73,751

Accumulated depreciationEquipment 16,861

Accounts payable 35,522

Salaries payable 0

Unearned training fees 14,000

Common stock 13,000

Retained earnings 54,016

Dividends 42,149

Tuition fees earned 107,477

Training fees earned 40,040

Depreciation expenseProfessional library0

Depreciation expenseEquipment0

Salaries expense 50,579

Insurance expense 0

Rent expense 23,188

Teaching supplies expense0

Advertising expense 7,376

Utilities expense 5,901

Totals $290,400 $290,400

2-a.Post the balance from the unadjusted trial balance and the adjusting entries in to theT-accounts.

2-b.Prepare an adjusted trial balance.