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. lts unadjusted trial balance as of December 31, 2018, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2018, follow 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 2018 c. Annual depreciation on the equipment is $13,871 d. Annual depreciation on the professional library is $6,936 e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,800, 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 2019 f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,019 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) g, wTl'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, 2018 Debit Credit 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 Common stock Retained earnings, December 31, 2017 Dividends 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 $ 27,396 10,536 15,806 2,108 31,610 $ 9,484 73,751 16,861 35,522 14,000 12,000 55,016 42,149 107,477 40,040 0 50,579 23,188 0 7,376 5,901 $290,400 $290,400 4-a. Prepare Wells Technical Institute's income statement for the year 2018. 4-b. Prepare Wells Technical Institute's statement of retained earnings for the year 2018. 4-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2018. Complete this question by entering your answers in the tabs below. Req 4A Req 4BReq 4C Prepare Wells Technical Institute's income statement for the year 2018. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31, 2018 Req 4AReq 4B Req 4C Prepare Wells Technical Institute's statement of retained e WELLS TECHNICAL INSTITUTE Statement of Retained Earnings For Year Ended December 31, 2018 Retained earnings, December 31, 2017 Retained earnings, December 31, 2018 WELLS TECHNICAL INSTITUTE Balance Sheet December 31, 2018
