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 $3,468 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,006 are available at year-end. c. Annual depreciation on the equipment is $13,871. d. Annual depreciation on the professional library is $6,936. e. On September 1, WTI agreed to do five courses for a client for $2,800 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 $14,000 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees 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, $10,048 of the tuition has been earned by WTI. g. 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 Credit Debit $ 27,698 10,652 15,981 2,132 31,958 $ 9,589 96,000 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned training fees Common stock Retained earnings Dividends Tuition fees earned Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 17,046 27,000 0 14,000 19,267 79,000 42,613 108,661 40,482 51,136 @ 23,452 7,457 5,966 $ 315,045 $315,045 Debit General Journal Transaction Credit 3,468 a Insurance expense Prepaid insurance 3,468 b 10,652 Teaching supplies expense Teaching supplies 10,650 13,871 C. Depreciation expense-Equipment Accumulated depreciation-Equipment 13,871 d. 6.936 Depreciation expense-Professional library Accumulated depreciation Professional library 6,936 14,000 e Unearned training fees Training fees earned 14.000 f Accounts receivable 10,048 0140 T. FARAH Required information Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. Cash Equipment Unadi . Bal. Unadj. Bal 0 0 (Adj. Bal Adj. Bal. Accounts Receivable Accumulated Depreciation Equipment Unadj. Bal Unadj. Bal. 0 Adj. Bal. Adj. Bal Accounts Payable Teaching Supplies Unadj . Bal Unadj Bal. Prex Next > Prepaid Insurance Salaries Payable Unadj. Bal Unadj. Bal 0 Adj. Bal. Adj Bal. Prepaid Rent Unearned Training Fees Unadj. Bal. Unadj. Bal. Ad Bal Adi Bal Common stock Professional Library Unadj. Bal! Unadj Bal Adj. Ball Adj. Bal Depreciation Expense-Equipment Advertising Expense Unadj Bal Unad Bal 0 0 Adj. Bal Adj Bal Salaries Expense Utilities Expense Unadj. Bal Unadj . Bal. 0 0 Adi Bal Ad Bal Insurance Expense Unadj. Bal Adj. Bal Dividends Tuition Fees Earned Unadj. Bal. Unadi. Bal 0 0 Adj. Bal Adj Bal Rent Expense Training Fees Earned Unadi. Bal Unadj. Bal. 0 0 Adj. Bal. Adj. Bal Teaching Supplies Expense Depreciation Expense-Professional Library Unadj Bal Unadj. Bal. 0 Adj. Bal Adj. Bal Prepare an adjusted trial balance. WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31 Debit Credit Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearned training fees Common stock Retained earninas S Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $ 79,000 on December 31 of the prior year. WELLS TECHNICAL INSTITUTE Statement of Retained Earnings For Year Ended December 31 Retained earnings, December 31 prior year end 7 Retained earnings. December 31 current year end WELLS TECHNICAL INSTITUTE Balance Sheet December 31