Problem 3-3A (Static) Part 3 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 $80,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31. Complete this question by entering your answers in the tabs below. Req 3A Req 3B Req 3C Prepare Wells Technical Institute's balance sheet as of December 31. (Include all balance sheet accounts, even those with zero balances.) WELLS TECHNICAL INSTITUTE Balance Sheet December 31 Cash Accounts receivable Teaching supplies December 31 Debit $ 34,000 0 8,000 Credit 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 Unearned revenue Common stock 12,500 10,000 Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Equipment Salaries expense Insurance expense 80,000 50,000 123,900 40,000 Depreciation expense-Professional library 0 50,000 Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 33,000 6,000 6,400 $ 317,400 $ 317,400 S Prev. 7 of 8 Next > Check my work Required information Problem 3-3A (Static) Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, P5 [The following information applies to the questions displayed below.] Wells Technical Institute (WTI) 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 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. c. Annual depreciation on the equipment is $13,200. d. Annual depreciation on the professional library is $7,200. e. On September 1, WTI agreed to do five training 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 training courses on September 1, and WTI credited Unearned Revenue. 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, $7,500 of the tuition revenue has been earned by WTI. q. 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 < Prev 7 of 8 Next > zero balances ! Required information Cash Accounts receivable Teaching supplies Prepaid insurance Balance Sheet December 31 Assets Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Total assets 0 0 0 Check r Required information 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 Add: Net income Less: Dividends Retained earnings, December 31 current year end 0 $ 0 < Req 3A Req 3C > ! Required information Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 Revenues Training revenue Tuition revenue $ 0 S < Prev 7 of 8 Next > creen capture Screenshot taken Copied to clipboa