Problem $3-3$A $($Static$)$ Preparing adjusting entries, adjusted trial balance, and financial statements LO P$1,$ P$2,$ P$3,$ P$4,$ P$5$

$[$The following information dpplies to the questions displaynd beitow$]$

Wells Techrical institute $($WTi$),$ a school conned by Thistana Wells, prowides training to individuals who pay fuition directly to the school. WTI also offers training to groups in oft$-$ste locations. WTi initially records prepaid expenses and unearned revenues in bailance sheet accounts. Its unadjusted trial halance as of December $31$ follows, along with descriptions of fems a through$-$h that require adjusting entries on December $31$

Additional Information

A$.$ An analysis of Witis insurance policies shows that $$2,400$ of covetage has expired

b$.$ An arventory count shows that teaching supples costing $$2,800$ ale available at year$-$end.

c$.$ Annual depreciation an the equipment is $$13,200$

d$.$ Annual depreciation on the professional library is $$7200.$

e$.$ On September $1$ WTI agreed to do five training courses for a dient for $$2\mathrm{.}500$ each. Twa courses will start trimediately and finish before the end of the year Three courses will not begin until next year. The client paid $$12\mathrm{.}500$ cash in advance for all five training courses on September $1$ and WTI credtied Unearned Aevenue

On October $15,$ WTI agreed to teach a fou$-$month class $($peginning immediatehy$)$ 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 WTL$.$

WTts two employecs are pad weekly As of the end of the year two days' salaries have accrued at the rate of $5100$ per day for each empiogee.

h$.$ The balance in the Prepaid Rent account represents rent for December.