Saved Help Save & Exit Submit [The towowing information appies to the questions played 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 $3,203 of coverage has expired. b. An inventory count shows that teaching supplies costing $2.776 are available at year-end. c. Annual depreciation on the equipment is $12,814 d. Annual depreciation on the professional library is $6,407 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, $9,000 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 Debit $26,793 Credit Teaching supplies 10,304 Prepaid insurance 15,458 Prepaid rent 2,062 Professional Library 30,913 Accumulated depreciation Professional Library $9,275 Equipment 104,000 Accumulated depreciation-Equipment 16,489 Accounts payable 26,000 Salaries payable Unearned revenue 13,500 Common stock 26,351 Retained earnings 80,000 Dividends 41,220 Tuition revenue 105,108 Training revenue 39,158 Depreciation expense-Professional Library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 49,464 22.682 7,214 5,771 $315,881 $315,881 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 $80,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31 < Prev of 5 Next >>