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.

A. Additional Information Items An analysis of WTI's insurance policies shows that $2,674 of coverage has expired.

B.An inventory count shows that teaching supplies costing $2,318 are available at year-end. Annual depreciation on the equipment is $10,698.

C.Annual depreciation on the professional library is $5,349. On September 1, WTI agreed to do five training courses for a client for $2,600 each.

D.Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $13,000 cash in advance for all five training courses on September 1, and WTI credited Unearned Revenue.

E.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.

F. At December 31, $6,653 of the tuition revenue has been earned by WTI. WTI's two employees are paid weekly.

G.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 Debit Credit Cash $ 26,189 Accounts receivable 0 Teaching supplies 10,071 Prepaid insurance 15,110 Prepaid rent 2,015 Professional library 30,217 Accumulated depreciationProfessional library $ 9,066 Equipment 101,000 Accumulated depreciationEquipment 16,117 Accounts payable 23,000 Salaries payable 0 Unearned revenue 13,000 T. Wells, Capital 105,902 T. Wells, Withdrawals 40,291 Tuition revenue 102,740 Training revenue 38,275 Depreciation expenseProfessional library 0 Depreciation expenseEquipment 0 Salaries expense 48,350 Insurance expense 0 Rent expense 22,165 Teaching supplies expense 0 Advertising expense 7,051 Utilities expense 5,641 Totals $ 308,100 $ 308,100

Problem 3-3A (Algo) Part 2 2-a. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. 2-b. Prepare an adjusted trial balance.