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

An analysis of WTI's insurance policies shows that $$2,400$ of coverage has expired.

An inventory count shows that teaching supplies costing $$2,800$ are available at year$-$end.

Annual depreciation on the equipment is $$13,200.$

Annual depreciation on the professional library is $$7,200.$

On September $1,$ WTI agreed to do five training courses for a client for $$2,500$ each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $$12,500$ 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 $31,$ $$7,500$ 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 $ $34,000$

Accounts receivable $0$

Teaching supplies $8,000$

Prepaid insurance $12,000$

Prepaid rent $3,000$

Professional library $35,000$

Accumulated depreciation$$Professional library $ $10,000$

Equipment $80,000$

Accumulated depreciation$$Equipment $15,000$

Accounts payable $26,000$

Salaries payable $0$

Unearned revenue $12,500$

Common stock $10,000$

Retained earnings $80,000$

Dividends $50,000$

Tuition revenue $123,900$

Training revenue $40,000$

Depreciation expense$$Professional library $0$

Depreciation expense$$Equipment $0$

Salaries expense $50,000$

Insurance expense $0$

Rent expense $33,000$

Teaching supplies expense $0$

Advertising expense $6,000$

Utilities expense $6,400$

Totals $ $317,400$ $ $317,400$

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

$2-$b$.$ Prepare an adjusted trial balance. Complete this question by entering your answers in the tabs below.

Req $2$AReq $2$B

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

Cash Equipment

Unadjusted Balance Unadjusted Balance

Adjusted Balance $0$ Adjusted Balance $0$

Accounts Receivable Accumulated Depreciation$$Equipment

Unadjusted Balance Unadjusted Balance

Adjusted Balance $0$ Adjusted Balance $0$

Teaching Supplies Accounts Payable

Unadjusted Balance Unadjusted Balance

Adjusted Balance $0$ Adjusted Balance $0$

Prepaid Insurance Salaries Payable

Unadjusted Balance Unadjusted Balance

Adjusted Balance $0$ Adjusted Balance $0$

Prepaid Rent Unearned Revenue

Unadjusted Balance Unadjusted Balance

Adjusted Balance $0$ Adjusted Balance $0$

Professional Library Common Stock

Unadjusted Balance Unadjusted Balance

Adjusted Balance $0$ Adjusted Balance $0$

Accumulated Depreciation$$Professional Library Retained Earnings

Unadjusted Balance Unadjusted Balance

Adjusted Balance $0$ Adjusted Balance $0$

Tuition Revenue Dividends

Unadjusted Balance Unadjusted Balance

Adjusted Balance $0$ Adjusted Balance $0$

Training Revenue Rent Expense

Unadjusted Balance Unadjusted Balance

Adjusted Balance $0$ Adjusted Balance $0$

Depreciation Expense$$Professional Library Teaching Supplies Expense

Unadjusted Balance Unadjusted Balance

Adjusted Balance $0$ Adjusted Balance $0$

Depreciation Expense$$Equipment Advertising Expense

Unadjusted Balance Unadjusted Balance

Adjusted Balance $0$ Adjusted Balance $0$

Salaries Expense Utilities Expense

Unadjusted Balance Unadjusted Balance

Adjusted Balance $0$ Adjusted Balance $0$

Insurance Expense

Unadjusted Balance

Adjusted Balance $0$ Complete this question by entering your answers in the tabs below.

Req $2$AReq $2$B

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 revenue

Common stock

Retained earnings

Dividends

Tuition revenue

Training revenue

Depreciation expense$$Professional library

Depreciation expense$$Equipment

Salaries expense

Insurance expense

Rent expense

Teaching supplies expense

Advertising expense

Utilities expense

Totals $$0$ $$0$