Required information [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 a. An analysis of WTI's insurance policies shows that $3,468 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,006 are available at year-end. c. Annual depreciation on the equipment is $13,871. d. Annual depreciation on the professional library is $6,936. 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, $9,798 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. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance. December 31 Cash Accounts receivable Teaching supplies Debit $ 27,396 Credit 0 10,536 Prepaid insurance 15,806 Prepaid rent 2,108 Professional library 31,610 Accumulated depreciation-Professional library Equipment $ 9,484 96,000 Accumulated depreciation-Equipment Accounts payable 16,861 22,000 Salaries payable 0 Unearned revenue 14,500 T. Wells, Capital. 102,287 T. Wells, Withdrawals 42,149 Tuition revenue 107,477 Training revenue 40,040 Depreciation expense-Professional library 0 Depreciation expense-Equipment 0 Salaries expense 50,579 Insurance expense Rent expense 23, 188 Teaching supplies expense Advertising expense Utilities expense Totals 7,376 5,901 $ 312,649 $ 312,649 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 $102,287 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 3A Req 3B Req 3C Prepare Wells Technical Institute's balance sheet as of December 31. (Include all balance sheet accounts, even those with zero balances.) WELLS TECHNICAL INSTITUTE Balance Sheet December 31 Assets Cash Accounts receivable Teaching supplies $ 27,396 9,798 3,006 Prepaid rent 0 Prepaid insurance 12,338 Professional library $ 31,610 Accumulated depreciation-Professional library 16,420 15,190 Equipment 96,000 Accumulated depreciation-Equipment 30,732 65,268 $ 132,996 Accounts payable Salaries payable Unearned revenue Tuition revenue < Req 3B 22,000 400 8,700 117,275 148,375 $ 148,375 Req 3C >