Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3 The following information applies to the questions displayed below) Wells Technical Instrute (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 Intially records prepaid expenses and uneared revenues in balance sheet accounts. Descriptions of items a through that require adjusting entries on December 31, 2017, follow. Additional Information Items a. An analysis of WTI's Insurance policies shows that $3.996 of coverage has expired. b. An inventory count shows that teaching supplies costing $3.464 are available at year-end 2017 Annual depreciation on the equipment is $15.986. d. Annual depreciation on the professional library is $7.993. e 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 $2.700, 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 f On October 15. WTI agreed to teach a four-month class (beginning Immediately for an individual for $5,161 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.) 9. 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 h. The balance in the Prepaid Rent account represents rent for December WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 Debit $ 28, 151 Credit 18,826 16, 242 2,166 32,481 $ 9,746 75,784 17,325 37.386 Cash Accounts receivable Teaching supplies Prepaid insurance Prepeid rent Professional Library Accumulated depreciation Professional Library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearted training fees Cannon stock Retained earnings Dividends Tuition fees earned Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies experise Advertising experise utilities experise 13,5ee 13.ee 55,862 43,310 119.438 41.143 3 51.972 23.8.26 @ 7,579 6,863 $ 298,400 Total $298,400 Problem 3-3A Part 3 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