Question

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.

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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 athrough 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 $2,800, 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.

On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,461 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	$	27,094
Accounts receivable		0
Teaching supplies		10,420
Prepaid insurance		15,632
Prepaid rent		2,085
Professional library		31,262
Accumulated depreciation—Professional library				$	9,380
Equipment		72,935
Accumulated depreciation—Equipment					16,675
Accounts payable					34,976
Salaries payable					0
Unearned training fees					14,000
Common stock					14,000
Retained earnings					52,277
Dividends		41,684
Tuition fees earned					106,293
Training fees earned					39,599
Depreciation expense—Professional library		0
Depreciation expense—Equipment		0
Salaries expense		50,022
Insurance expense		0
Rent expense		22,935
Teaching supplies expense		0
Advertising expense		7,295
Utilities expense		5,836
Totals	$	287,200		$	287,200

Answer 1

1..Adjusting entries
Account Titles	Debit	Credit
Insurance expense	2674
Prepaid Insurance		2674
Teaching supplies expense	8102
Teaching supplies		8102
(10420-2318)
Depreciation expense-Equipment	10698
Accumulated depreciation-Equipment		10698
Depreciation expense-Professional Library	5349
Accumulated depreciation-Professional Library		5349
Unearned Training fees	5600
Training fees earned		5600
(2800*2 mths.)
Accounts receivable	6152.5
Tution fees earned		6152.5
(2461*2.5 mths.)
Salaries expense	400
Salaries payable		400
(100*2 emp.*2 days)
Rent expense	2085
Prepaid rent		2085

Trial Balance as at 12/31/2017	Unadjusted T/B		Adjusting Entries		Adjusted T/B
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	27,094				27,094
Accounts receivable	0		6152.5		6,152.5
Teaching supplies	10,420		-8102		2,318
Prepaid insurance	15,632		-2674		12,958
Prepaid rent	2,085		-2085		0
Professional library	31,262				31,262
Accumulated depreciation—Professional library		9,380		5349		14,729
Equipment	72,935				72,935
Accumulated depreciation—Equipment		16,675		10698		27,373
Accounts payable		34,976				34,976
Salaries payable		0		400		400
Unearned training fees		14,000		-5600		8,400
Common stock		14,000				14,000
Retained earnings		52,277				52,277
Dividends	41,684				41,684
Tuition fees earned		106,293		6152.5		112,445.5
Training fees earned		39,599		5600		45,199
Depreciation expense—Professional library	0		5349		5,349
Depreciation expense—Equipment	0		10698		10,698
Salaries expense	50,022		400		50,422
Insurance expense	0		2674		2,674
Rent expense	22,935		2085		25,020
Teaching supplies expense	0		8102		8,102
Advertising expense	7,295				7,295
Utilities expense	5,836				5,836
Totals	287,200	287,200	22,599.5	22,599.5	309,799.5	309,799.5