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An analysis of WTI's insurance policies shows that $3,996 of coverage has expired. An inventory count shows that teaching supplies costing $3,464 are available at
- An analysis of WTI's insurance policies shows that $3,996 of coverage has expired.
- An inventory count shows that teaching supplies costing $3,464 are available at year-end 2017.
- Annual depreciation on the equipment is $15,986.
- Annual depreciation on the professional library is $7,993.
- 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 $2,800, 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.
- On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $5,061 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.)
- 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.
- The balance in the Prepaid Rent account represents rent for December.
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Cash $ 26,340 Accounts receivable 0 Teaching supplies 10,129 Prepaid insurance 15,197 Prepaid rent 2,027 Professional library 30,391 Accumulated depreciationProfessional library $ 9,119 Equipment 70,903 Accumulated depreciationEquipment 16,210 Accounts payable 33,612 Salaries payable 0 Unearned training fees 14,000 Common stock 14,000 Retained earnings 50,431 Dividends 40,523 Tuition fees earned 103,332 Training fees earned 38,496 Depreciation expenseProfessional library 0 Depreciation expenseEquipment 0 Salaries expense 48,628 Insurance expense 0 Rent expense 22,297 Teaching supplies expense 0 Advertising expense 7,092 Utilities expense 5,673 Totals $ 279,200 $ 279,200 - 3-a. Prepare Wells Technical Institute's income statement for the year 2017. 3-b. Prepare Wells Technical Institute's statement of owner's equity for the year 2017. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2017.
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