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. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Its unadjusted trial balance as of December 31 follows along with descriptions of items a through h that require adjusting entries on December 31.

Additional Information Items:

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 available at year-end 2015.
c. Annual depreciation on the equipment is $13,200.
d. Annual depreciation on the professional library is $7,200.
e. 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 $2,500, 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 2016.
f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,000 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.)
g. 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.
h. The balance in the Prepaid Rent account represents rent for December.


Debit    Credit
Cash 34,000     
  Accounts receivable 0     
  Teaching supplies 8,000     
  Prepaid insurance 12,000     
  Prepaid rent 3,000     
  Professional library 35,000     
  Accumulated depreciation—Professional library 10,000  
  Equipment 80,000     
  Accumulated depreciation—Equipment 15,000
  Accounts payable 26,000  
  Salaries payable 0
  Unearned training fees 12,500  
  Common stock 10,000  
  Retained earnings 80,000  
  Dividends 50,000     
  Tuition fees earned 123,900  
  Training fees earned 40,000  
  Depreciation expense—Professional library 0     
  Depreciation expense—Equipment 0     
  Salaries expense 50,000     
  Insurance expense 0     
  Rent expense 33,000     
  Teaching supplies expense 0     
  Advertising expense 6,000     
  Utilities expense 6,400     

  Totals 317,400      317,400

Required:
Prepare the adjusting entries, adjusted trial balance, and financial statements of above entries.