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 that require adjusting entries on December 31. Additional Information Items a. An analysis of WTI's insurance policies shows that $3,335 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,891 are available at year-end. c. Annual depreciation on the equipment is $13,342. d. Annual depreciation on the professional library is $6,671. e. On September 1, WTI agreed to do five training courses for a client for $2,800 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 $14,000 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, $9,403 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. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit Credit Cash Accounts receivable Teaching supplies $ 26,491 0 10,187 Prepaid insurance 15,284 Prepaid rent 2,039 Professional library 30,565 Accumulated depreciation-Professional library $ 9,171 Equipment 98,000 Accumulated depreciation-Equipment 16,303 Accounts payable 26,000 Salaries payable 0 Unearned revenue Common stock 14,000 21,380 Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Equipment Salaries expense Insurance expense 78,000 40,755 103,924 Depreciation expense-Professional library 38,717 10 48,907 0 Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 22,429 O 7,132 5,706 $ 307,495 $ 307,495 3-a. Prepare Wells Technical Institute's income statement f 3-h Prans Req 3A Req 38 Req 3C Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 Req 3A Req 38 Req 3C 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 INSTITUTE Statement of Retained Earnings For Year Ended December 31 Retained earnings, December 31 prior year end Retained earnings, December 31 current year end nces Req 3A Req 381 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