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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. 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 $2,807 of coverage has expired.

An inventory count shows that teaching supplies costing $2,433 are available at year-end 2017.

Annual depreciation on the equipment is $11,227.

Annual depreciation on the professional library is $5,614.

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 $2,700, 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 $2,819 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	$	27,245
Accounts receivable		0
Teaching supplies		10,478
Prepaid insurance		15,719
Prepaid rent		2,097
Professional library		31,436
Accumulated depreciation—Professional library				$	9,432
Equipment		73,338
Accumulated depreciation—Equipment					16,768
Accounts payable					35,749
Salaries payable					0
Unearned training fees					13,500
T. Wells, Capital					66,646
T. Wells, Withdrawals		41,916
Tuition fees earned					106,885
Training fees earned					39,820
Depreciation expense—Professional library		0
Depreciation expense—Equipment		0
Salaries expense		50,300
Insurance expense		0
Rent expense		23,067
Teaching supplies expense		0
Advertising expense		7,336
Utilities expense		5,868
Totals	$	288,800		$	288,800

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.

Complete this question by entering your answers in the tabs below.

                                                                           Debit                      Credit

Cash                              

...

(Use chart above to fill in the blanks)

...

...

...

Utilities

Totals

Answer 1

2a. Prepaid Insurance

Beginning balance	15,719	Insurance Expense	2,807
Ending balance	12,912

Prepaid Rent:

Beginning balance	2,097	Rent Expense	2,097
Ending balance	0

Teaching Supplies

Beginning balance	10,478	Teaching Supplies Expense	8,045
Ending balance	2,433

Accumulated Depreciation : Equipment

		Beginning balance	16,768
		Depreciation Expense	11,227
		Ending balance	27,995

Accumulated Depreciation : Professional Library

		Beginnig balance	9,432
		Depreciation Expense	5,614
		Ending balance	15,046

Unearned Training Fees

Training Fees Earned	5,400	Beginning balance	13,500
		Ending balance	8,100

2b. Wells Teaching Institute

Adjusted Trial Balance

December 31, 2017

Particulars	Debit	Credit
	$	$
Cash	27,245
Accounts Receivable	7,047.50
Teaching Supplies	2,433
Prepaid Insurance	12,912
Prepaid Rent	0
Professional Library	31,436
Accumulated Depreciation : Professional Library		15,046
Equipment	73,338
Accumulated Depreciation: Equipment		27,995
Accounts Payable		35,749
Salaries Payable		400
Unearned Training Fees		8,100
T. Wells, Capital		66,646
T. Wells, Withdrawals	41,916
Tuition Fees Earned		113,932.50
Training Fees Earned		45,220
Depreciation Expense: Professional Library	5,614
Depreciation Expense: Equipment	11,227
Salaries Expense	50,700
Insurance Expense	2,807
Rent Expense	25,164
Teaching Supplies Expense	8,045
Advertising Expense	7,336
Utilities Expense	5,868
Totals	313,088.50	313,088.50