Required information The following information applies to the questions displayed below.J The adjusted trial balance for Chiara Company as of December 31, 2017, follows. Debit $ Credit Cash Accounts receivable Interest receivable Notes receivable (due in 90 days) Office supplies Automobiles Accumulated depreciation-Automobiles Equipment Accumulated depreciation-Equipment Land Accounts payable Interest payable Salaries payable Unearned fees Long-term notes payable R. Chiara, Capital R. Chiara, Withdrawals Fees earned Interest earned Depreciation expense-Automobiles Depreciation expense-Equipment Salaries expense Wages expense Interest expense Office supplies expense Advertising expense Repairs expense-Automobiles Totals 214,600 53,000 22, 200 171,500 16,500 171,000 $95,000 142,000 17,000 78,000 95,000 50,000 25,000 32,000 144,000 285,800 51,600 584,000 22,000 25,000 21, 50e 187,900 38,000 34,800 33,600 60,500 29,600 $1,349 , 80 $1,349,800 Required: 1(a) Prepare the income statement for the year ended December 31, 2017 1(b) Prepare the statement of owner's equity for the year ended December 31, 2017 1(c) Prepare Chiara Company's balance sheet as of December 31, 2017 Complete this question by entering your answers in the tabs below Req 1A Req 1B Req 1C ACC111 Chpt 3 EOC Saved tollows. WIl initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow 2 Additional Information Items a. An analysis of WTI's insurance policies shows that $2,939 of coverage has expired b. An inventory count shows that teaching supplies costing $2,547 are available at year-end 2017. c. Annual depreciation on the equipment is $11,756 d. Annual depreciation on the professional library is $5,878 e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls fora monthly fee of $2,300, 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 $3,480 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTIs accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) 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. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 Debit Credit $26,340 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned training fees T. Wells, Capital T. Wells, Withdrawals Tuition fees earned Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 10,129 15,197 2,027 30,391 $ 9,119 79,983 16,210 36,112 11,500 64,431 40,523 183, 332 38,496 48,628 22,297 7,892 5,673 $ 279,200 279,200
