Required information [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 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. c. Annual depreciation on the equipment is $15,986. d. Annual depreciation on the professional library is $7,993. e. 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. 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,$12,403 of the tuition revenue has been earned by WTI. g. 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. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{\begin{tabular}{c} WELLS TECHNICAL INSTITUTE \\ Unadjusted Trial Balance \\ December 31 \end{tabular}} \\ \hline & Debit & Credit \\ \hline Cash & $26,793 & \\ \hline Accounts receivable & 0 & \\ \hline Teaching supplies & 10,304 & \\ \hline Prepaid insurance & 15,458 & \\ \hline Prepaid rent & 2,062 & \\ \hline Professional library & 30,913 & \\ \hline Accumulated depreciation-Professional library & & $9,275 \\ \hline Equipment & 99,000 & \\ \hline Accumulated depreciation-Equipment & & 16,489 \\ \hline Accounts payable & & 27,000 \\ \hline Salaries payable & & 0 \\ \hline Unearned revenue & & 14,500 \\ \hline Common stock & & 16,351 \\ \hline Retained earnings & & 83,000 \\ \hline Dividends & 41,220 & \\ \hline Tuition revenue & & 105,108 \\ \hline Training revenue & & 39,158 \\ \hline Depreciation expense-Professional library & 0 & \\ \hline Depreciation expense-Equipment & 0 & \\ \hline Salaries expense & 49,464 & \\ \hline Insurance expense & 0 & \\ \hline Rent expense & 22,682 & \\ \hline Teaching supplies expense & 0 & \\ \hline Advertising expense & 7,214 & \\ \hline Utilities expense & 5,771 & \\ \hline Totals & $310,881 & $310,881 \\ \hline \end{tabular} 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 $83,000 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. Prepare Wells Technical Institute's income statement for the year. 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 $83,000 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. Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $83,000 on December 31 of the prior year. Prenare Wells Technical Institute's halance sheet as of December 31