Required information Skip to question The following information applies to the questions displayed below Wells Technical Institute (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 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 $3,864 of coverage has expired An inventory count shows that teaching supplies costing $3,349 are available at year end Annual depreciation on the equipment is $15,458 Annual depreciation on the professional library is $7,729 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, $13,000 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 $ 26,642 Accounts receivable 0 Teaching supplies 10,245 Prepaid insurance 15,371 Prepaid rent 2,050 Professional library 30,739 Accumulated depreciationProfessional library $ 9,223 Equipment 104,000 Accumulated depreciationEquipment 16,396 Accounts payable 24,000 Salaries payable 0 Unearned revenue 12,000 T Wells, Capital 109,610 T Wells, Withdrawals 40,988 Tuition revenue 104,516 Training revenue 38,937 Depreciation expenseProfessional library 0 Depreciation expenseEquipment 0 Salaries expense 49,186 Insurance expense 0 Rent expense 22,550 Teaching supplies expense 0 Advertising expense 7,173 Utilities expense 5,738 Totals $ 314,682 $ 314,682 3 a Prepare Wells Technical Institute's income statement for the year 3 b Prepare Wells Technical Institute's statement of owner's equity for the year The T Wells, Capital account balance was $109,610 on December 31 of the prior year, and there were no owner investments in the current year 3 c Prepare Wells Technical Institute's balance sheet as of December 31

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Required information Skip to question [The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a school owned by Tristana Wells, provides

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[The following information applies to the questions displayed below.] Wells Technical Institute (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. 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 $3,864 of coverage has expired.
An inventory count shows that teaching supplies costing $3,349 are available at year-end.
Annual depreciation on the equipment is $15,458.
Annual depreciation on the professional library is $7,729.
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, $13,000 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	$ 26,642
Accounts receivable	0
Teaching supplies	10,245
Prepaid insurance	15,371
Prepaid rent	2,050
Professional library	30,739
Accumulated depreciationProfessional library		$ 9,223
Equipment	104,000
Accumulated depreciationEquipment		16,396
Accounts payable		24,000
Salaries payable		0
Unearned revenue		12,000
T. Wells, Capital		109,610
T. Wells, Withdrawals	40,988
Tuition revenue		104,516
Training revenue		38,937
Depreciation expenseProfessional library	0
Depreciation expenseEquipment	0
Salaries expense	49,186
Insurance expense	0
Rent expense	22,550
Teaching supplies expense	0
Advertising expense	7,173
Utilities expense	5,738
Totals	$ 314,682	$ 314,682

3-a. Prepare Wells Technical Institute's income statement for the year. 3-b. Prepare Wells Technical Institute's statement of owner's equity for the year. The T. Wells, Capital account balance was $109,610 on December 31 of the prior year, and there were no owner investments in the current year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31.