Required information Skip to question [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 Items An analysis of WTI's insurance policies shows that $2,674 of coverage has expired. An inventory count shows that teaching supplies costing $2,318 are available at year-end. Annual depreciation on the equipment is $10,698. Annual depreciation on the professional library is $5,349. On September 1, WTI agreed to do five training courses for a client for $2,400 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 $12,000 cash in advance for all five training courses on September 1, and WTI credited Unearned Revenue. 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, $7,153 of the tuition revenue has been earned by WTI. 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. 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 24,000 Salaries payable 0 Unearned revenue 12,000 Common stock 23,496 Retained earnings 80,000 Dividends 42,845 Tuition revenue 109,254 Training revenue 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 $80,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31.