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, 2013, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2013, follow.

Additional Information Items

a.	An analysis of WTI's insurance policies shows that $3,250 of coverage has expired.
b.	An inventory count shows that teaching supplies costing $3,650 are available at year-end 2013.
c.	Annual depreciation on the equipment is $14,900.
d.	Annual depreciation on the professional library is $8,900.
e.	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 $4,200, 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 2014.
f.	On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,700 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.)
g.	WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $270 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, 2013

Debit

Credit

Cash

$

51,000

Accounts receivable

0

Teaching supplies

9,700

Prepaid insurance

13,700

Prepaid rent

4,700

Professional library

52,000

Accumulated depreciationProfessional library

$

11,700

Equipment

97,000

Accumulated depreciationEquipment

16,700

Accounts payable

44,700

Salaries payable

0

Unearned training fees

21,000

Common stock

27,000

Retained earnings

97,000

Dividends

67,000

Tuition fees earned

144,300

Training fees earned

57,000

Depreciation expenseProfessional library

0

Depreciation expenseEquipment

0

Salaries expense

67,000

Insurance expense

0

Rent expense

41,500

Teaching supplies expense

0

Advertising expense

7,700

Utilities expense

8,100

Date

	General Journal	Debit	Credit
Dec 31	Insurance expense	3,250
	Prepaid insurance		3,250
Dec 31	Teaching supplies expense	3,650
	Teaching supplies		3,650
Dec 31	Depreciation expenseEquipment	14,900
	Accumulated depreciationEquipment		14,900
Dec 31	Depreciation expenseProfessional library	8,900
	Accumulated depreciationProfessional library		8,900
Dec 31	Unearned training fees	8,400
	Training fees earned		8,400
Dec 31	Accounts receivable	11,750
	Tuition fees earned		11,750
Dec 31	Salaries expense	1,080
	Salaries payable		1,080
Dec 31	Rent expense	4,700
	Prepaid rent		4,700