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 $3,468 of coverage has expired. An inventory count shows that teaching supplies costing $3,006 are available at year-end. Annual depreciation on the equipment is $13,871. Annual depreciation on the professional library is $6,936. On September 1, WTI agreed to do five training 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 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, $10,048 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.

Required information [The following information applies to the questions displayed below. 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 $3,468 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 training 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 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, $10,048 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. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit Credit Cash $ 28, 151 Accounts receivable 0 Teaching supplies 10,826 Prepaid insurance 16,242 Prepaid rent 2,166 Professional Library 32,481 Accumulated depreciation- Professional library $ 9,746 Equipment 102,000 Accumulated depreciation-Equipment 17,325 Accounts payable 21,000 Salaries payable 0 Unearned revenue 14,000 Common stock 32,964 Retained earnings 78,000 Dividends 43,310 Tuition revenue 110,438 Training revenue 41, 143 Depreciation expense-Professional 0 Depreciation expense-Equipment 0 Salaries expense 51,972 Insurance expense 0 Rent expense Teaching supplies expense 0 Advertising expense 7,579 Utilities expense 6,063 $ Totals 324,616 324,616 library 23, 826 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 2A Req 2B Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end. View transaction list View journal entry worksheet Credit No Transaction General Journal 1 a. Insurance expense Prepaid insurance Debit 3,468 3,468 2 b. 7,820 Teaching supplies expense Teaching supplies 7,820 1 3 c. 13,871 Depreciation expense-Equipment Accumulated depreciation Equipment 13,871 4 d. 6,936 Depreciation expense-Professional library Accumulated depreciation Professional library 6,936 onl e. 5,600 Unearned revenue Training revenue 5,600 6 f. 10,048 Accounts receivable Tuition revenue 10,048 7 g. 400 Salaries expense Salaries payable 400 8 h. 2,166 Rent expense Prepaid rent 2,166 Req 2A Req 2B Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. Cash Equipment Unadjusted Balance 28,151 Unadjusted Balance 102,000 Adjusted Balance 28,151 Adjusted Balance 102,000 Accounts Receivable Unadjusted Balance 0 Accumulated Depreciation-Equipment Unadjusted 17,325 Balance 13,871 10,048 Adjusted Balance 10,048 Adjusted Balance 31,196 Accounts Payable Unadjusted Balance Teaching Supplies 10,8261 Unadjusted Balance 21,000 D 7,820 Adjusted Balance 3,006 Adjusted Balance 21,000 Prepaid Insurance Salaries Payable Unadjusted Balance 16,242 Unadjusted Balance 0 3,468 g 400 Adjusted Balance 12,774 Adjusted Balance 400 Prepaid Rent Unearned Revenue Unadjusted Balance 2,166 Unadjusted Balance 14,000 in 2,166 5,600 Adjusted Balance 0 Adjusted Balance 8,400 Common Stock Unadjusted Balance Professional Library 32,481 Unadjusted Balance 32,964 Adjusted Balance 32,481 Adjusted Balance 32,964 Retained Earnings Accumulated Depreciation-Professional Library Unadjusted 9,746 Balance 6,936 Unadjusted Balance 78,000 d Adjusted Balance 16,682 Adjusted Balance 78,000 Tuition Revenue Dividends Unadjusted Balance 110,438 Unadjusted Balance 43,310 10,048 Adjusted Balance 120,486 Adjusted Balance 43,310 Training Revenue Rent Expense Unadjusted Balance 23,826 41,143 Unadjusted Balance 5,600 in e 2,166 Adjusted Balance 46,743 Adjusted 25,992 Balance Depreciation Expense-Professional Library Unadjusted 0 Balance d 6,936 Teaching Supplies Expense Unadjusted 0 Balance 7,820 Adjusted Balance 6,936 Adjusted Balance 7,820 Advertising Expense Depreciation Expense-Equipment Unadjusted 0 Balance 13,871 Unadjusted Balance 7,579 Adjusted Balance 13,871 Adjusted Balance 7,579 Salaries Expense Utilities Expense 6,063 51,972 Unadjusted Balance g Unadjusted Balance 400 Adjusted Balance 52,372 Adjusted Balance 6,063 Insurance Expense Unadjusted Balance 0 a 3,468 Adjusted Balance 3,468 Reg 2A Req 2B > Complete this question by entering your answers in the tabs below. Req 2A Req 2B Prepare an adjusted trial balance. WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31 Debit Credit Cash $ 28,151 Accounts receivable 10,048 Teaching supplies 3,006 Prepaid insurance 12,774 Prepaid rent Professional library 32,481 Accumulated depreciation- $ 16,682 Professional library Equipment 102,000 Accumulated depreciation- 31,196 Equipment Accounts payable 21,000 Salaries payable 400 Unearned revenue 8,400 Common stock 32,964 Retained earnings 78,000 Dividends 43,310 Tuition revenue 120,486 Training revenue 46,743 Depreciation expense- 6,936 Professional library Depreciation expense-Equipment 13,871 Salaries expense 53,372 Insurance expense 3,468 Rent expense 25,992 Teaching supplies expense 7,820 Advertising expense 7,579 Utilities expense 6,063 Totals $ 356,871 $ 355,871