Required information Problem 3-3A (Static) Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, PS [The following information apples to the questions displayed below.] Wells Technical Institute (WTI), a school owned by Tristana Wells, provides tralning to Individuals who pay tultion directly to the school. WTI also offers training to groups in off-site locations. WTI Initially records prepaid expenses and unearned revenues in balance sheet accounts. Its unadjusted trial balance as of December 31 follows, along with descriptons of Items a through hthat require adjusting entries on December 31. Additional Information a. An analysis of WTI's insurance policies shows that $2.400 of coverage has expired. b. An Inventory count shows that teaching supplies costing $2.800 are avallable at year-end. C. Annual depreciation on the equipment is $13.200. d. Annual depreciation on the professional library is $7,200. e. On September 1, WTI agreed to do five training courses for a client for $2,500 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $12.500 cash in advance for all five training courses on September 1, and WTI credited Unearned Revenue. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. Ất December 31, $7,500 of the tultion revenue has been éarned by WTI. g. WTI's two employees are pald weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee. h. The balance In the Prepaid Rent account represents rent for December. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance Decenber 31 Debit $ 34, 000 Credit Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue 8,00e 12,000 3,88e 35,000 $ 10,000 Be, eee 15,800 26,00e 12,5ee 98,eee T. Wells, Capital T. Wells, Withdrawals Tuition revenue se, 0ee 123,98e 48,eee Training revenue Depreciation expense-Professional library Depreciation expense-Equipnent Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense se, 0ee 33,80e 6,0ee 6,400 $ 317,400 $ 317,480 Totals