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a An analysis of WTI's insurance policies shows that $2,807 of coverage has expired b. An inventory count shows that teaching supplies costing $2,433 are

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a An analysis of WTI's insurance policies shows that $2,807 of coverage has expired b. An inventory count shows that teaching supplies costing $2,433 are available at year-end c Annual depreciation on the equipment is $11,227 d. Annual depreciation on the professional library is $5,614 e. On September 1, WTI agreed to do five courses for a client for $2,300 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 $11,500 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees. 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. At December 31, $8,048 of the tuition has been earned by WTI g. WT'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. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit Credit Cash 27,698 Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional 1ibrary Equipment Accumulated depreciation-Equipment Accounts payable Salaries pay able Unearned training fees 10,652 15,981 2.132 31,958 9,589 98,000 17,046 24,000 11,500 Common stock 25,767 se,000 Retained earnings Dividends 42,613 Tuition fees earned Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Saleries expense Insurance expense Rent expense Teaching supplies expense Advertising expense utilities expense 108,661 40,482 51,136 23,452 7,457 S,966 Totals $ 317,045 $317,045 Complete this question by entering your answers in the tabs below. 3 of 3 Req 3C Req 3B Req 3A Prepare Wells Technical Institute's income statement for the year WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 Revenues S 116,709 Tuition fees eamed 40,482 x Training fees eamed 157,191 Total revenues Expenses 11.227 Depreciation expense-Equipment 51,536 Salaries expense 2,807 Insurance expense 25.584 Rent expense 7457 Advertising expense 5,966 Utilities expense 5.614 Depreciation expense-Professional library 110,1911 Total expenses Net income 47,000x) Req 3B Req 3A Req 3B Req 3C Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $80,000 on December 31 of the prior year. WELLS TECHNICAL INSTITUTE Statement of Retained Earnings For Year Ended December 31 Retained earnings, December 31 prior year end 0 Retained earnings, December 31 current year end 0

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