Preparing adjusting entries, adjusted trial balance, and financial statements LO A1, P1, P2, P3 5 [The following information applies to the questions displayed below. 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 Part 3 or3 Additional Information Items 20 points a. An analysis of WTI's insurance policies shows that $2,674 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,318 are available at year-end 2017 c. Annual depreciation on the equipment is $10,698. d. Annual depreciation on the professional library is $5,349. e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls fora Sklpped eBook 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 2018 Print f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,761 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.