Requlred Information

$[$The following information applies to the questions displayed below.$]$

Wells Technical Institute $($WTI$)$ 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 $31.$

Addltional Information Items

a$.$ An analysis of WTI's insurance policies shows that $$3\mathrm{.}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 $$2,500$ each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $$12,500$ 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,$$$10,798$ 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.

$\backslash$table$[[\backslash$table$[[$WELLS TECHNICAL INSTITUTE$],[$Unadjusted Trial Balance$],[$December $31]]],[,$Debit,Credit$],[$Cash$,$$$28,151,],[$Accounts receivable,a$,],[$Teaching supplies,$10,826,],[$Prepaid insurance,$16,242,],[$Prepaid rent,$2,166,],[$Professional library,$32,481,],[$Accumulated depreciation$-$Professional library,,$$9\mathrm{.}746],[$Equipment$,100,000,],[$Accumulated depreciation$-$Equipment,,$17,325],[$Accounts payable,,$21,09\backslash$epsi $],[$Salaries payable,,E$],[$Unearned revenue,,$12,50$e$],[$Common stock,,$26,460],[$Retained earnings,,$84,09$E$],[$Dividends$,43,310,],[$Tuition revenue,,$110,438],[$Training revenue,,$41,143],[$Depreciation expense$-$Professional library,$\backslash$theta $,],[$Depreciation expense$-$Equipment,$\backslash$theta $,],[$Salaries expense,$51,972,],[$Insurance expense,$\backslash$theta $,],[$Rent expense,$23,826,],[$Teaching supplies expense,a$,],[$Advertising expense,$7,579,],[$Utilities expense,$6,063,],[$Totals$,$$$322,616,$$$322,616]]$

$3-$a$.$ Prepare Wells Technical Institute's income statement for the year.

$3-$b$.$ Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $$84,000$ on December $31$ of the prioryear.

$3-$c$.$ Prepare Wells Technical Institute's balance sheet as of December $31.$ Complete this question by entering your answers in the tabs below.

Req$3B$

Req$3C$

Prepare Wells Technical Institute's income statement for the year. Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was

$$84,000$ on December $31$ of the prior year. Req $3A$

Req $3C$

Prepare Wells Technical Institute's balance sheet as of December $31.$

Note: Include all balance sheet accounts, even those with zero balances.