Wells Technical Institute $($WTI$)$ 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

An analysis of WTI's insurance policies shows that $$3,864$ of coverage has expired.

An inventory count shows that teaching supplies costing $$3,349$ are available at year$-$end.

Annual depreciation on the equipment is $$15,458.$

Annual depreciation on the professional library is $$7,729.$

On September $1,$ WTI agreed to do five training courses for a client for $$2,400$ each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $$12,000$ cash in advance for all five training courses on September $1,$ and WTI credited Unearned Revenue.

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 $31,$ $$13,000$ of the tuition revenue has been earned by WTI.

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.

The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE

Unadjusted Trial Balance

December $31$

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 depreciation$$Professional library $ $9,484$

Equipment $99,000$

Accumulated depreciation$$Equipment $16,861$

Accounts payable $22,000$

Salaries payable $0$

Unearned revenue $12,000$

Common stock $31,787$

Retained earnings $76,000$

Dividends $42,149$

Tuition revenue $107,477$

Training revenue $40,040$

Depreciation expense$$Professional library $0$

Depreciation expense$$Equipment $0$

Salaries expense $50,579$

Insurance expense $0$

Rent expense $23,188$

Teaching supplies expense $0$

Advertising expense $7,376$

Utilities expense $5,901$

Totals $ $315,649$ $ $315,649$

$2-$a$.$ Post the balance from the unadjusted trial balance and the adjusting entries into the T$-$accounts.

$2-$b$.$ Prepare an adjusted trial balance.