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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

1. An analysis of WTI's insurance policies shows that $3,468 of coverage has expired.
2. An inventory count shows that teaching supplies costing $3,006 are available at year-end.
3. Annual depreciation on the equipment is $13,871.
4. Annual depreciation on the professional library is $6,936.
5. On September 1, WTI agreed to do five training courses for a client for $2,900 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 $14,500 cash in advance for all five training courses on September 1, and WTI credited Unearned Revenue.
6. 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, $9,798 of the tuition revenue has been earned by WTI.
7. 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.
8. The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTEUnadjusted Trial BalanceDecember 31 DebitCreditCash$ 26,189 Accounts receivable0 Teaching supplies10,071 Prepaid insurance15,110 Prepaid rent2,015 Professional library30,217 Accumulated depreciationProfessional library $ 9,066Equipment104,000 Accumulated depreciationEquipment 16,117Accounts payable 23,000Salaries payable 0Unearned revenue 14,500Common stock 29,402Retained earnings 78,000Dividends40,291 Tuition revenue 102,740Training revenue 38,275Depreciation expenseProfessional library0 Depreciation expenseEquipment0 Salaries expense48,350 Insurance expense0 Rent expense22,165 Teaching supplies expense0 Advertising expense7,051 Utilities expense5,641 Totals$ 311,100$ 311,100

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 $78,000 on December 31 of the prior year.

3-c. Prepare Wells Technical Institute's balance sheet as of December 31.

Prepare Wells Technical Institute's income statement for the year.

WELLS TECHNICAL INSTITUTEIncome StatementFor Year Ended December 31 $0 0

Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $78,000 on December 31 of the prior year.

WELLS TECHNICAL INSTITUTEStatement of Retained EarningsFor Year Ended December 31Retained earnings, December 31 prior year end 0 Retained earnings, December 31 current year end$0

Prepare Wells Technical Institute's balance sheet as of December 31. Note: Include all balance sheet accounts, even those with zero balances.

WELLS TECHNICAL INSTITUTEBalance SheetDecember 31 0 0 $0 0 0 $0