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Wells Technical Institute $($WTI$),$ a school owned by Tristana Wells, 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 $$3,600$ of coverage has expired.

An inventory count shows that teaching supplies costing $$3,120$ are available at year$-$end.

Annual depreciation on the equipment is $$14,400.$

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

On September $1,$ WTI agreed to do five courses for a client for $$2,600$ each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $$13,000$ cash in advance for all five 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 $31,$ $$11,200$ 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 $31$

Cash $ $26,944$ debit

Accounts receivable $0$ debit

Teaching supplies $10,362$ debit

Prepaid insurance $15,545$ debit

Prepaid rent $2,073$ debit

Professional library $31,088$ debit

Accumulated depreciation$$Professional library $ $9,328$ Credit

Equipment $105,000$ debit

Accumulated depreciation$$Equipment $16,582$ credit

Accounts payable $23,000$ credit

Salaries payable $0$ credit

Unearned revenue $13,000$ credit

Common stock $31,077$ credit

Retained earnings $80,000$ credit

Dividends $41,452$ debit

Tuition revenue $105,701$ credit

Training revenue $39,379$ credit

Depreciation expense$$Professional library $0$ Debit

Depreciation expense$$Equipment $0$ Debit

Salaries expense $49,743$ Debit

Insurance expense $0$ Debit

Rent expense $22,803$ Debit

Teaching supplies expense $0$ Debit

Advertising expense $7,254$ Debit

Utilities expense $5,803$ Debit

Totals debit$-$ $ $318,067$ credit $-$ $ $318,067"$ input WTI's insurance policies shows that $$3,600$ of coverage has expired for general journal"

Post the balance from the unadjusted trial balance and the adjusting entries into the T$-$accounts for cash, equipment, accounts receivable, accumulated depreciation$-$ equipment, teaching supplies, accounts payable, prepaid insurance, salaries payable, prepaid rent, unearned revenue, professional library, common stock, accumulated depreciation $-$ professional library, retained earnings, tuition revenue, dividends, training revenue, rent expense, depreciation expense professional library, teaching supplies expense, depreciation expense $-$ equipment, Advertising expense, salaries expense, utilities expense and insurance expense NEXT Prepare an adjusted trial balance. THEN Prepare Wells Technical Institute's income statement for the year. THENPrepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $$80,000$ on December $31$ of the prior year. FINALLY, Prepare Wells Technical Institute's balance sheet as of December $31.$ Include all balance sheet accounts, even those with zero balances.

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