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1. An analysis of WTI's insurance policies shows that $2,400 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,800 are available at year-end.
3. Annual depreciation on the equipment is $13,200.
4. Annual depreciation on the professional library is $7,200.
5. 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.
6. 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.
7. 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.
8. The balance in the Prepaid Rent account represents rent for December.
9. WELLS TECHNICAL INSTITUTEUnadjusted Trial BalanceDecember 31 DebitCreditCash
10. $34,000 Accounts receivable0 Teaching supplies8,000 Prepaid insurance12,000 Prepaid rent3,000 Professional library35,000 Accumulated depreciationProfessional library $ 10,000Equipment80,000 Accumulated depreciationEquipment 15,000Accounts payable 26,000Salaries payable 0Unearned revenue 12,500T. Wells, Capital 90,000T. Wells, Withdrawals50,000 Tuition revenue 123,900Training revenue 40,000Depreciation expenseProfessional library0 Depreciation expenseEquipment0 Salaries expense50,000 Insurance expense0 Rent expense33,000 Teaching supplies expense0 Advertising expense6,000 Utilities expense6,400 Totals$ 317,400$ 317,400

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