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, is found on the trial balance tab. 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.

1. An analysis of WTIs insurance policies shows that $2,400 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,800 are available at year-end 2017.
3. Annual depreciation on the equipment is $13,200.
4. Annual depreciation on the professional library is $7,200.
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 $2,500, 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 $3,000 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTIs accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)
7. WTIs 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.

Adjusted Wells Technical Institute Trial Balance December 31, 2017 Account Title Debit Credit Cash 34,000 Accounts receivable 7,500 Teaching supplies 2,800 Prepaid insurance 9,600 Professional library 35,000 Accumulated depreciation Professional library 17,200 Equipment Accumulated depreciation Equipment Accounts payable Salaries payable 80,000 28,200 26,000 400 Unearned training fees Common stock 7,500 10,000 Retained earnings Dividends 80,000 50,000 Tuition fees earned 131,400 Training fees earned 45,000 Depreciation expense Professional library 7,200 Depreciation expense Equipment Salaries expense 13,200 50,400 Insurance expense 2,400 80,000 Equipment 28,200 Accumulated depreciation Equipment Accounts payable 26,000 400 Salaries payable 7,500 Unearned training fees 10,000 Common stock 80,000 Retained earnings 50,000 Dividends 131,400 Tuition fees earned 45,000 Training fees earned 7,200 Depreciation expense Professional library Depreciation expense - Equipment Salaries expense 13,200 50,400 2,400 Insurance expense 36,000 Rent expense 5,200 Teaching supplies expense Advertising expense 6,000 6,400 Utilities expense 345,700 $ 345,700 Total Income Statement General Ledger Adjusted Wells Technical Institute Income Statement For Year Ended December 31, 2017 Revenues Training fees earned 45,000 Tuition fees earned 131,400 0 $ Total revenues 176,400 TExpenses Depreciation expense Equipment 13,200 - Salaries expense 50,400 Insurance expense 2,400 Rent expense 36,000 Teaching supplies expense 5,200 Utilities expense 6,400 Advertising expense 6,000 Depreciation expense - Professional library 7,200 0 C Total expenses 126,800 49,600 Net income Answer is not complete. General General Income St Retained Impact on Trial Balance Requirement Balance Sheet Earnings Journal Ledger Statement income The unadjusted or adjusted balances will appear for each account, based on your selection. Adjusted Wells Technical Institute Statement of Retained Earnings For Year Ended December 31, 2017 Retained earnings, December 31, 2016 80,000 Add: Net income 49,600 Less: Dividends (50,000) $ 79,600 Retained earnings, December 31, 2017 Adjusted Wells Technical Institute Balance Sheet December 31, 2017 Assets Current assets Cash 34,000 Accounts receivable 7,500 Teaching supplies 2,800 Prepaid insurance 9,600 Training fees earned 45,000 0 98,900 Total current assets Plant assets Professional library 35,000 Training fees earned (45,000) Professional library, net (10,000) Equipment 80,000 Accumulated depreciation Equipment (28,200) Equipment, net 51,800 Total plant assets 41,800 $ 140,700 Total assets Liabilities Current liabilities Salaries pavable 400 Professional library 35,000 Training fees earned (45,000) Professional library, net (10,000) Equipment 80,000 Accumulated depreciation Equipment (28,200) Equipment, net 51,800 Total plant assets 41,800 140,700 Total assets Liabilities Current liabilities Salaries payable 400 Accounts payable 26,000 Unearned training fees 7,500 0 Total liabilities 33,900 Equity Common stock 10,000 Retained earnings 79,600 Total equity 89,600 Total Liabilities & Equity 123,500 EA Show less A Unadjusted Account affecting the: Impact on income Adjusting entry related to: Income statement Balance Sheet Insurance expense Prepaid insurance a. Insurance Teaching supplies expense Depreciation expense- Equipment Depreciation expense Professional library Unearned training fees Teaching supplies b. Teaching supplies c. Depreciation equipment Equipment Professional library d. Depreciation - library e. Training fees XTraining fees earned X Tuition fees earned Tuition fees earned f. Tuition Salaries payable Salaries expense g. Salaries Rent expense Prepaid rent h. Rent Total impact on income due to adjustments 0 Net income before adjustments Net income after adjustments 0 Balance Sheet Impact on income Unadjusted Wells Technical Institute Trial Balance December 31, 2016 Account Title Debit Credit Cash 34,000 Teaching supplies 8,000 Prepaid insurance 12,000 Prepaid rent 3,000 35,000 Professional library Accumulated depreciation Professional library 10,000 Equipment 80,000 Accumulated depreciation Equipment 15,000 Accounts payable Unearned training fees 26,000 12,500 Common stock 10,000 Retained earnings 80,000 Dividends 50,000 Tuition fees earned 123,900 Training fees earned 40,000 Salaries expense 50,000 Rent expense 33,000 Advertising expense 6,000 Utilities expense 6,400 Total 317,400 $ 317,400 Adjusted Wells Technical Institute Trial Balance December 31, 2017 Account Title Debit Credit Cash 34,000 7,500 Accounts receivable Teaching supplies 2,800 Prepaid insurance 9,600 Professional library 35,000 Accumulated depreciation Professional library 17,200 - Equipment 80,000 Accumulated depreciation Equipment 28,200 26,000 Accounts payable Salaries payable 400 Unearned training fees 7,500 Common stock 10,000 80,000 Retained earnings Dividends 50,000 Tuition fees earned 131,400 Training fees earned 45,000 Depreciation expense Professional library 7,200 - Depreciation expense Equipment 13,200 - 50,400 Salaries expense Insurance expense 2,400 Rent expense 36,000 Teaching supplies expense 5,200 Advertising expense 6.000 Accounts payable 26,000 Salaries payable 400 Unearned training fees 7,500 Common stock 10,000 Retained earnings 80,000 Dividends 50,000 131,400 Tuition fees earned 45,000 Training fees earned Depreciation expense Professional library 7,200 - Depreciation expense Equipment 13,200 - Salaries expense 50,400 Insurance expense 2,400 Rent expense 36,000 Teaching supplies expense 5,200 Advertising expense Utilities expense 6,000 6,400 Total 345,700 345,700 S Plant assets Professional library 35,000 Training fees earned (40,000) Professional library, net (5,000) 80,000 Equipment Accumulated depreciation - Equipment (15,000) Equipment, net 65,000 Total plant assets 60,000 154,000 Total assets Liabilities Current liabilities Salaries payable C Accounts payable 26,000 Unearned training fees 12,500 C Total liabilities 38,500 Equity 10,000 Common stock Retained earnings 98,500 Total equity Total Liabilities & Equity 108,500 147,000 St Retained Earnings Impact on income For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the drop-down.) Show less A Adjusted Account affecting the: Impact on net income Adjusting entry related to: Income statement Balance Sheet Prepaid insurance a. Insurance Insurance expense Teaching supplies expense Teaching supplies b. Teaching supplies c. Depreciation equipment Depreciation expense Equipment Depreciation expense Professional library Equipment Professional library d. Depreciation library Training fees earned e. Training fees Unearned training fees X Tuition fees earned Salaries payable Tuition fees earned f. Tuition X g. Salaries Salaries expense Prepaid rent h. Rent Rent expense Total impact on income due to adjustments 0 $ Net income before adjustments Net income after adjustments 0 Balance Sheet Impact on income Wells Technical Institute Balance Sheet December 31, 2017 Assets Current assets Cash 34,000 Accounts receivable 7,500 Teaching supplies 2,800 Prepaid insurance 9,600 Training fees earned 45,000 0 Total current assets 98,900 Plant assets Professional library 35,000 Training fees earned (45,000) Professional library, net (10,000) Equipment 80,000 Accumulated depreciation - Equipment (28,200) Equipment, net 51,800 Total plant assets 41,800 140,700 Total assets Liabilities Current liabilities