1. An analysis of WTI's insurance policies shows that $3,203 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,776 are available at year-end.
3. Annual depreciation on the equipment is $12,814.
4. Annual depreciation on the professional library is $6,407.
5. On September 1, WTI agreed to do five 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 courses on September 1, and WTI credited Unearned Training Fees.
6. 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, $9,500 of the tuition has been earned by WTI.
7. 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.
8. The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31
	Debit			Credit
Cash	$	27,849
Accounts receivable		0
Teaching supplies		10,710
Prepaid insurance		16,068
Prepaid rent		2,143
Professional library		32,133
Accumulated depreciationProfessional library				$	9,641
Equipment		96,000
Accumulated depreciationEquipment					17,139
Accounts payable					23,000
Salaries payable					0
Unearned training fees					12,500
Common stock					24,996
Retained earnings					79,000
Dividends		42,845
Tuition fees earned					109,254
Training fees earned					40,702
Depreciation expenseProfessional library		0
Depreciation expenseEquipment		0
Salaries expense		51,415
Insurance expense		0
Rent expense		23,573
Teaching supplies expense		0
Advertising expense		7,498
Utilities expense		5,998
Totals	$	316,232		$	316,232

3-a. Prepare Wells Technical Institute's income statement for the year. 3-b. Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $79,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31.