Question

1. An analysis of WTI's insurance policies shows that $3,996 of coverage has expired.
2. An inventory count shows that teaching supplies costing $3,464 are available at year-end 2017.
3. Annual depreciation on the equipment is $15,986.
4. Annual depreciation on the professional library is $7,993.
5. 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 $2,800, 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.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $5,061 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.)
7. 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.
8. The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017
	Debit			Credit
Cash	$	26,340
Accounts receivable		0
Teaching supplies		10,129
Prepaid insurance		15,197
Prepaid rent		2,027
Professional library		30,391
Accumulated depreciation—Professional library				$	9,119
Equipment		70,903
Accumulated depreciation—Equipment					16,210
Accounts payable					33,612
Salaries payable					0
Unearned training fees					14,000
Common stock					14,000
Retained earnings					50,431
Dividends		40,523
Tuition fees earned					103,332
Training fees earned					38,496
Depreciation expense—Professional library		0
Depreciation expense—Equipment		0
Salaries expense		48,628
Insurance expense		0
Rent expense		22,297
Teaching supplies expense		0
Advertising expense		7,092
Utilities expense		5,673
Totals	$	279,200		$	279,200

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.

Answer 1