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 a. An analysis of WTI's insurance policies shows that $3,732 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,235 are available at year-end. c. Annual depreciation on the equipment is $14,929. d. Annual depreciation on the professional library is $7,464. e. 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. 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, $12,100 of the tuition revenue 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. Cash Accounts receivable Teaching supplies WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 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 Debit $ 26,038 Credit 0 10,013 15,023 2,004 30,043 $ 9,014 102,000 16,025 23,000 0 12,500 24,171 83,000 40,059 102,148 38,055 0 0 48,071 0 22,044 0 7,010 5,608 $ 307,913 $ 307,913 Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. Unadjusted Balance Cash Unadjusted Balance Equipment Adjusted Balance 0 Adjusted Balance Accounts Receivable Accumulated Depreciation-Equipment Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance Teaching Supplies Accounts Payable Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance Prepaid Insurance Salaries Payable Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance Prepaid Rent Unearned Revenue Unadjusted Balance Unadjusted Balance Adjusted Balance Adjusted Balance 0 Professional Library Common Stock Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance Accumulated DepreciationProfessional Library Retained Earnings Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Tuition Revenue Dividends Unadjusted Balance Unadjusted Balance Adjusted Balance 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 Adjusted Balance 0 Salaries Expense Utilities Expense Unadjusted Balance Unadjusted Balance Adjusted Balance 0 Adjusted Balance 0 Unadjusted Balance Insurance Expense Adjusted Balance 0