[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. Its unadjusted trial balance as of December 31, 2017, 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, 2017, follow. Additional Information Items .. 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 2017 c. Annual depreciation on the equipment is $12,814. d. Annual depreciation on the professional library is $6,407. 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 2018. 1. On October 15, WTI agreed to teach a four- month class (beginning immediately) for an individual for $3,500 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.) 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. n. The balance in the Prepaid Rent account represents rent for December WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017 Credit Cach Accounts receive Teaching supplies Prepaid insurance President Professional library Accumulated depreciation Professional ibrary Accumulated depreciation-opment Accounts SA Unearned training fees Common stock Retained earnings Dividende 43.078 Tuition fees camned Training fees comed Depreciation expense-Professionary Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Us expense TO Deb $ 22000 0 10.768 9.1955 2.155 32307 75.368 poble 17.232 36653 M.000 14.000 . 51694 7539 6.031 $ 29,800 120.00 $296.000 3-a. Prepare Wells Technical Institute's income statement for the year 2017. 3-b. Prepare Wells Technical Institute's statement of owner's equity for the year 2017. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2017. Complete this question by entering your answers in the tabs below. Req Req 3B Reg 30 Prepare Wells Technical Institute's income statement for the year 2017. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31, 2017 Revenues Tuition fees earned Training fees earned $ 0 Expenses Depreciation expense-Equipment Depreciation expense Professional library Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense 7,539 6,031 Total expenses Net income 13.570 51,030 $ Req 30 > 3-a. Prepare Wells Technical Institute's income statement for the year 2017. 3-b. Prepare Wells Technical Institute's statement of owner's equity for the year 201 3-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2017. Complete this question by entering your answers in the tabs below. Req 3A Req 3B Reg 3C Prepare Wells Technical Institute's balance sheet as of December 31, 2017. WELLS TECHNICAL INSTITUTE Balance Sheet December 31, 2017 Assets Cash Accounts receivable Teaching supplies Prepaid insurance $ 28.000 2.776 $ 32,307 Professional library Accumulated depreciation - Professional library 32,307 0 63,083 Total assets $ Liabilities Accounts payable Salaries payable Unearned training fees 400 Total liabilities 400 Equity 14,000 Common stock Retained earnings Total equity Total liabilities and equity 14,000 14,400 $