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 courses for a client for $2,200 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 $11,000 cash in advance for all five 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, $8,950 of the tuition revenue has been earned by WTI 9. 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 Debat $ 28,000 Credit 10,768 16,155 2,155 32,307 $ 9,693 98,000 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Professional Library Depreciation expense-Equipment Salaries expense Insurance expense 17,232 25,000 0 11,000 21,738 14,000 43,078 109,546 40,925 0 e 51,694 51,694 23,705 Deprecaceaense-cupen Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 7,539 6,831 $ 319,432 $319,432 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 Journal entry worksheet 2 3 4 5 6 7 An analysis of WTI's insurance policies shows that $2,939 of coverage has expired Note Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal View transaction list Journal entry worksheet 2 3 4 5 6 7 8 An inventory count shows that teaching supplies costing $2,547 are available at year-end. Notes Enter debits before credits General Journal Debit Credit Transaction b Record entry Clear entry View general Journal 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 Journal entry worksheet 4 5 6 7 8 Annual depreciation on the equipment is $11.756. Notes Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general Journal Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-e View transaction list Journal entry worksheet 1 5 B 7 8 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. Note: Enter debits before credits Debit General Journal Transaction Credit 9 Record entry Clear entry View general Journal View transaction list Journal entry worksheet The balance in the Prepaid Rent account represents rent for December les Note: Enter debits before credits Transaction h. General Journal Debit Credit Record entry Clear entry View general Journal