Required Information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3 The following information applies to the questions displayed below. of 3 Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tultion directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance 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 Book a. An analysis of WTI's insurance policies shows that $2,674 of coverage has expired. b. An c. Annual depreciation on the equipment is $10,698 d. Annual depreciation on the professional library is $5,349. e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a tory count shows that teaching supplies costing $2,318 are available at year-end 2017. monthly fee of $2,800, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,461 tultion per 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 h. The balance in the Prepaid Rent account represents rent for December. month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) day for each employee. December 31. 2017 Debit Credit Cash