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 items a through h that require adjusting entries on December 31, 2017, follow. Additional Information Items

1. An analysis of WTI's insurance policies shows that $3,996 of coverage has expired.
2. An inventory count shows that teaching supplies costing $3,464 are available at year-end 2017.
3. Annual depreciation on the equipment is $15,986.
4. Annual depreciation on the professional library is $7,993.
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 $2,400, 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 $5,461 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 supplies		10,536
Prepaid insurance		15,806
Prepaid rent		2,108
Professional library		31,610
Accumulated depreciationProfessional library				$	9,484
Equipment		73,751
Accumulated depreciationEquipment					16,861
Accounts payable					37,522
Salaries payable					0
Unearned training fees					12,000
Common stock					13,000
Retained earnings					54,016
Dividends		42,149
Tuition fees earned					107,477
Training fees earned					40,040
Depreciation expenseProfessional library		0
Depreciation expenseEquipment		0
Salaries expense		50,579
Insurance expense		0
Rent expense		23,188
Teaching supplies expense		0
Advertising expense		7,376
Utilities expense		5,901
Totals	$	290,400		$	290,400

Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.

• An analysis of WTI's insurance policies shows that $3,996 of coverage has expired.

• 2

  An inventory count shows that teaching supplies costing $3,464 are available at year-end 2017.

• 3

  Annual depreciation on the equipment is $15,986.

• 4

  Annual depreciation on the professional library is $7,993.

• 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 $2,400, 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 $5,461 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.

• 2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. 2-b. Prepare an adjusted trial balance.

• Prepare an adjusted trial balance.

  WELLS TECHNICAL INSTITUTE
  Adjusted Trial Balance
  December 31, 2017
  	Debit	Credit
  Cash
  Accounts receivable
  Teaching supplies
  Prepaid insurance
  Prepaid rent
  Professional library
  Accumulated depreciationProfessional library
  Equipment
  Accumulated depreciationEquipment
  Accounts payable
  Salaries payable
  Unearned training fees
  Common stock
  Retained earnings
  Dividends
  Tuition fees earned
  Training fees earned
  Depreciation expenseProfessional library
  Depreciation expenseEquipment
  Salaries expense
  Insurance expense
  Rent expense
  Teaching supplies expense
  Advertising expense
  Utilities expense
  Totals	$0	$0

3-a. Prepare Wells Technical Institute's income statement for the year 2017. 3-b. Prepare Wells Technical Institute's statement of owner's equity for the year 2017. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2017.

1. Depreciation on the company's equipment for 2017 is computed to be $14,000.
2. The Prepaid Insurance account had a $5,000 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. An analysis of the companys insurance policies showed that $1,400 of unexpired insurance coverage remains.
3. The Office Supplies account had a $280 debit balance on December 31, 2016; and $2,680 of office supplies were purchased during the year. The December 31, 2017, physical count showed $330 of supplies available.
4. One-fifth of the work related to $10,000 of cash received in advance was performed this period.
5. The Prepaid Insurance account had a $4,900 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $3,500 of coverage had expired.
6. Wage expenses of $5,000 have been incurred but are not paid as of December 31, 2017.

Prepare adjusting journal entries for the year ended (date of) December 31, 2017, for each of these separate situations.