iew History Bookmarks People Window Help Connect x (e chegg Study t.htm Guided Selutc x mework (ch 3) Help Save&Exit Check n Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO A1, P1, P2, P3 The following information applies to the questions displayed below Wells Technical Institute (WT), 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. Its unadjusted trial balence as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow Additional Information Items a. An analysis of WTI's insurance policies shows that $2.400 of coverage has expired b. An inventory count shows that teaching supplies costing $2.800 are avallable at year-end 2017 c. Annual depreclation on the equipment is $13,200. d. Annual depreciation on the professional library is $7.200 e. On November 1, WTI agreed to do a special six-month course istarting immediately) for a client. The contract calls for a monthly fee of $2,500, and the clilent paid the first five months fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the siath month will be recorded when lit is collected in 2018. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,000 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. WTIs accruals are applied to the nearest ha month; for example, October recognizes one-half month accrual) 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 Decem