Required information [The following information applies to the questions displayed below.) Wells Technical Institute (WT) 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 $3,732 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,235 are available at year-end. c. Annual depreciation on the equipment is $14,929. d. Annual depreciation on the professional library is $7,464. e. On September 1, WTI agreed to do five training courses for a client for $2,700 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 $13,500 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, $11,600 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. Cash Accounts receivable Teaching supplies WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends Tuition revenue: Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals Debit $ 26,189 Credit 0 10,071 15,110 2,015 30,217 $ 9,066 96,000 16,117 22,000 13,500 25,402 76,000 40,291 102,740 38,275 48,350 0 22,165 0 7,051 5,641 $ 303,100 $ 303,100 Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 Revenues Tuition revenue Training revenue Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Depreciation expense-Professional library Depreciation expense-Equipment Net income SA $ 0 0 WELLS TECHNICAL INSTITUTE Statement of Retained Earnings For Year Ended December 31 Retained earnings, December 31 prior year end Add: Net income Retained earnings, December 31 current year end 0 $ 0 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library WELLS TECHNICAL INSTITUTE Balance Sheet December 31 Assets Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment $ 26,189 0 0 $ 26,189 0