Question

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. 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

An analysis of WTI's insurance policies shows that $2,674 of coverage has expired.

An inventory count shows that teaching supplies costing $2,318 are available at year-end 2017.

Annual depreciation on the equipment is $10,698.

Annual depreciation on the professional library is $5,349.

On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,900, 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.

On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,361 tuition per 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.)

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 INSTITUTE Unadjusted Trial Balance December 31, 2017
	Debit			Credit
Cash	$	28,000
Accounts receivable		0
Teaching supplies		10,768
Prepaid insurance		16,155
Prepaid rent		2,155
Professional library		32,307
Accumulated depreciation—Professional library				$	9,693
Equipment		75,368
Accumulated depreciation—Equipment					17,232
Accounts payable					36,113
Salaries payable					0
Unearned training fees					14,500
T. Wells, Capital					68,493
T. Wells, Withdrawals		43,078
Tuition fees earned					109,846
Training fees earned					40,923
Depreciation expense—Professional library		0
Depreciation expense—Equipment		0
Salaries expense		51,694
Insurance expense		0
Rent expense		23,705
Teaching supplies expense		0
Advertising expense		7,539
Utilities expense		6,031
Totals	$	296,800		$	296,800

2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts.
2-b. Prepare an adjusted trial balance.
  

2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. 2-b. Prepare an adjusted trial balance. Complete this question by entering your answers in the tabs below. Req 2A Req 2B Post the balance from the unadjusted trial baance and the adusting entries in to the T accounts. Cash Equipment Unadj. Bal. 28,000 Unadj. Bal. Adj Bal. 28,000 Adj. Bal. Accounts Receivable Accumulated Depreciation-Equipment Unadj. Bal. Unadj. Bal.

Answer 1

2-a.

Cash					Accounts Receivable					Teaching Supplies
Unadj. Bal.	28000				Unadj. Bal.	0				Unadj. Bal.	10768
					f.	5902.5						b.	8450
Adj. Bal.	28000				Adj. Bal.	5902.5				Adj. Bal.	2318
Prepaid Insurance					Prepaid Rent					Professional Library
Unadj. Bal.	16155				Unadj. Bal.	2155				Unadj. Bal.	32307
		a.	2674				h.	2155
Adj. Bal.	13481				Adj. Bal.	0				Adj. Bal.	32307
Accumulated depreciation-Prof. library					Equipment					Accumulated depreciation-equipment
Unadj. Bal.			9693		Unadj. Bal.	75368				Unadj. Bal.			17232
		d.	5349									c.	10698
Adj. Bal.			15042		Adj. Bal.	75368				Adj. Bal.			27930
Accounts Payable					Salaries Payable					Unearned Training Fees
Unadj. Bal.			36113		Unadj. Bal.			0		Unadj. Bal.			14500
							g.	400		e.	5800
Adj. Bal.			36113		Adj. Bal.			400		Adj. Bal.			8700
T. Wells, Capital					T. Wells, Withdrawals					Tuition Fees Earned
Unadj. Bal.			68493		Unadj. Bal.	43078				Unadj. Bal.			109846
										f.			5902.5
Adj. Bal.			68493		Adj. Bal.	43078				Adj. Bal.			115748.5
Training Fees Earned					Depreciation expense-Prof. Library					Depreciation expense-equipment
Unadj. Bal.			40923		Unadj. Bal.	0				Unadj. Bal.	0
		e.	5800		d.	5349				c.	10698
Adj. Bal.			46723		Adj. Bal.	5349				Adj. Bal.	10698
Salaries Expense					Insurance Expense					Rent Expense
Unadj. Bal.	51694				Unadj. Bal.	0				Unadj. Bal.	23705
g.	400				a.	2674				h.	2155
Adj. Bal.	52094				Adj. Bal.	2674				Adj. Bal.	25860
Teaching Supplies Expense					Advertising Expense					Utilities Expense
Unadj. Bal.	0				Unadj. Bal.	7539				Unadj. Bal.	6031
b.	8450
Adj. Bal.	8450				Adj. Bal.	7539				Adj. Bal.	6031

2-b.

Wells Technical Institute
Adjusted Trial Balance
December 31, 2017
	Debit	Credit
Cash	28000
Accounts receivable	5902.50
Teaching supplies	2318
Prepaid insurance	13481
Prepaid rent	0
Professional library	32307
Accumulated depreciation-professional library		15042
Equipment	75368
Accumulated depreciation-equipment		27930
Accounts payable		36113
Salaries payable		400
Unearned training fees		8700
T. Wells, Capital		68493
T. Wells, Withdrawals	43078
Tuition fees earned		115748.50
Training fees earned		46723
Depreciation expense-professional library	5349
Depreciation expense-equipment	10698
Salaries expense	52094
Insurance expense	2674
Rent expense	25860
Teaching supplies expense	8450
Advertising expense	7539
Utilities expense	6031
Totals $	319149.50	319149.50

Note: Amounts have not been rounded off since no instructions provided in the question regarding the same.