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

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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

An analysis of WTI's insurance policies shows that $$2,400$ of coverage has expired.

An inventory count shows that teaching supplies costing $$2,800$ are available at year$-$end.

Annual depreciation on the equipment is $$13,200.$

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

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.

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.

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 INSTITUTEUnadjusted Trial BalanceDecember $31$DebitCreditCash$ $34,000$Accounts receivable$0$Teaching supplies$8,000$Prepaid insurance$12,000$Prepaid rent$3,000$Professional library$35,000$Accumulated depreciation$$Professional library$$$ $10,000$Equipment$80,000$Accumulated depreciation$$Equipment$15,000$Accounts payable$26,000$Salaries payable$0$Unearned revenue$12,500$T$.$ Wells, Capital$90,000$T$.$ Wells, Withdrawals$50,000$Tuition revenue$123,900$Training revenue$40,000$Depreciation expense$$Professional library$0$Depreciation expense$$Equipment$0$Salaries expense$50,000$Insurance expense$0$Rent expense$33,000$Teaching supplies expense$0$Advertising expense$6,000$Utilities expense$6,400$Totals$ $317,400$$ $317,400$

Problem $3-3$A $($Static$)$ Part $2$

$2-$a$.$ Post the balance from the unadjusted trial balance and the adjusting entries into the T$-$accounts.

$2-$b$.$ Prepare an adjusted trial balance.