Question 2 5 Taylor Technical Institute (TTI), a school owned by Greg Taylor, provides training to individuals who pay tuition directly to the school. TTI also offers training to groups in off-site locations. The unadjusted trial balance for TTI at December 31, 2017: Trial Balance December 31, 2017 Account Title Debit Credit Cash 57,250 Teaching supplies 8,650 Prepaid insurance 7,500 Prepaid rent 4,200 Professional library 55,000 Accumulated depreciation - Professional library 22.000 Equipment 58,000 Accumulated depreciation - Equipment 11.600 Accounts payable 34.400 Uneamed revenue 15.000 Common stock 10,000 Retained oaming 86.000 Dividende 50,000 Tuition revenue 129.000 Training revenue 42.500 Salaries expense 51,200 Rent expense 48,200 Advertising expense 6,050 Vilities experise 6,450 350,500 S 350.500 TTI initially records prepaid expenses and uneared revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31 follow. a a. An analysis of TTi's insurance policies shows that $2,500 of coverage has expired. b. An inventory count shows that teaching supplies costing $3.320 are available at year-end. C. Annual depreciation on the equipment is $5.800. d. Annual depreciation on the professional library is $11,000. e. On November 1, TTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $3.000, and the client paid the first five months fees in advance. When the cash was received, the Uneamed revenue account was credited f. On October 15, TTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $10,500 of the tuition revenue has been earned by TTI. g. TTi's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $180 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December. REQUIRED: 1. Prepare the adjusting year end journals for the items a-h. 2. Prepare an adjusted trial balance for TTI at 31 December, 2017. 3. Prepare an Income Statement and a Retained Earnings Statement for the year ended 31 December, 2017 as well as a Classified Balance Sheet as at Dec 31, 2017