Required information [The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a...

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Required information [The following information applies to the questions displayed below.] 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 a. An analysis of WTI's insurance policies shows that $2,674 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,318 are available at year-end. c. Annual depreciation on the equipment is $10,698. d. Annual depreciation on the professional library is $5,349. e. On September 1, WTI agreed to do five 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 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, $6,153 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 Accounts receivable Teaching supplies $ 27,698 0 10,652 Prepaid insurance 15,981 Prepaid rent 2,132 Professional library 31,958 Accumulated depreciation-Professional library $ 9,589 Equipment 97,000 Accumulated depreciation-Equipment 17,046 Accounts payable 22,000 Salaries payable 0 Unearned revenue 14,000 Rent expense Advertising expense Utilities expense Totals Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Equipment Salaries expense Insurance expense Teaching supplies expense 24,267 80,000 42,613 108,661 40,482 Depreciation expense-Professional library 0 0 51,136 0 23,452 0 7,457 5,966 $ 316,045 $ 316,045 Required: 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 Journal entry worksheet 1 2 3 4 5 6 7 8 An analysis of WTI's insurance policies shows that $2,674 of coverage has expired. Note: Enter debits before credits. Transaction a. General Journal Debit Credit 7 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 An inventory count shows that teaching supplies costing $2,318 are available at year-end. Note: Enter debits before credits. Transaction b. General Journal Debit Credit View general journal Clear entry Record entry > Journal entry worksheet < 1 2 3 4 567 8 Annual depreciation on the equipment is $10,698. Note: Enter debits before credits. Transaction C. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 7 8 Annual depreciation on the professional library is $5,349. Note: Enter debits before credits. Transaction d. General Journal Debit Credit View general journal Record entry Clear entry View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 On September 1, WTI agreed to do five 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 courses on September 1, and WTI credited Unearned Revenue. Note: Enter debits before credits. Transaction e. General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < 1 2 3 4 5 6 7 8 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. Note: Enter debits before credits. Transaction g. General Journal Debit Credit View general journal Record entry Clear entry > Journal entry worksheet < 1 2 3 4 5 6 7 8 The balance in the Prepaid Rent account represents rent for December. Note: Enter debits before credits. Transaction h. General Journal Debit Credit View general journal Record entry Clear entry Required information [The following information applies to the questions displayed below.] 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 a. An analysis of WTI's insurance policies shows that $2,674 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,318 are available at year-end. c. Annual depreciation on the equipment is $10,698. d. Annual depreciation on the professional library is $5,349. e. On September 1, WTI agreed to do five 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 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, $6,153 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 Accounts receivable Teaching supplies $ 27,698 0 10,652 Prepaid insurance 15,981 Prepaid rent 2,132 Professional library 31,958 Accumulated depreciation-Professional library $ 9,589 Equipment 97,000 Accumulated depreciation-Equipment 17,046 Accounts payable 22,000 Salaries payable 0 Unearned revenue 14,000 Rent expense Advertising expense Utilities expense Totals Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Equipment Salaries expense Insurance expense Teaching supplies expense 24,267 80,000 42,613 108,661 40,482 Depreciation expense-Professional library 0 0 51,136 0 23,452 0 7,457 5,966 $ 316,045 $ 316,045 Required: 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 Journal entry worksheet 1 2 3 4 5 6 7 8 An analysis of WTI's insurance policies shows that $2,674 of coverage has expired. Note: Enter debits before credits. Transaction a. General Journal Debit Credit 7 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 An inventory count shows that teaching supplies costing $2,318 are available at year-end. Note: Enter debits before credits. Transaction b. General Journal Debit Credit View general journal Clear entry Record entry > Journal entry worksheet < 1 2 3 4 567 8 Annual depreciation on the equipment is $10,698. Note: Enter debits before credits. Transaction C. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 7 8 Annual depreciation on the professional library is $5,349. Note: Enter debits before credits. Transaction d. General Journal Debit Credit View general journal Record entry Clear entry View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 On September 1, WTI agreed to do five 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 courses on September 1, and WTI credited Unearned Revenue. Note: Enter debits before credits. Transaction e. General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < 1 2 3 4 5 6 7 8 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. Note: Enter debits before credits. Transaction g. General Journal Debit Credit View general journal Record entry Clear entry > Journal entry worksheet < 1 2 3 4 5 6 7 8 The balance in the Prepaid Rent account represents rent for December. Note: Enter debits before credits. Transaction h. General Journal Debit Credit View general journal Record entry Clear entry