[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. 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. Additional Information Items a. An analysis of WTI's insurance policies shows that $3,600 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,120 are available at year-end. c. Annual depreciation on the equipment is $14,400. d. Annual depreciation on the professional library is $7.200. e. On September 1, WTI agreed to do five courses for a client for $2,600 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 $13,000 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees. 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, $11,200 of the tuition has been earned by WTI. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit Credit Cash $ 28,000 Accounts receivable 0 Teaching supplies 10, 768 Prepaid insurance 16,155 Prepaid rent 2,155 Professional library 32,307 Accumulated depreciation-Professional library $ 9,693 Equipment 104,000 Accumulated depreciation-Equipment 17,232 Accounts payable 23,000 Salaries payable Unearned training fees 13,000 Common stock 29, 738 Retained earnings 82,000 Dividends 43,078 Tuition fees earned 109,846 Training fees earned 40,923 Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense 51,694 Insurance expense Rent expense 23,705 Teaching supplies expense Advertising expense 7,539 Utilities expense 6,031 Totals $325,432 $325,432 @ @ 3-o. 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 $82,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31 Req Req 3B Req 3C Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 Revenues Tuition fees eamed Training fees earned $ 11,200 $ 5,200 $ $ 16,400 Total revenues Expenses Depreciation expenseProfessional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense 72,200 x 14.400 400 X 3,600 2.155 7,648 7.539 6,031 > Total expenses Net Income 113,973 97,573 X S S Complete this question by entering your answers in the tabs below. Ree Red Req3C Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $82,000 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 and $2.000 [Add Not income 57 573 179573 Les liens TS teaming December cent year and 5.135.495 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 Assets Accounts receivable Teaching supplies Prepaid insurance Prepaid rent 97,573 7,648 3,600 23.075 0 0 Totalt $ 131.896 Liabilities Accounts payable Sales payable Uneamed training fees Oo 23,000 400 40,923 Totalbes 54.323 Equity Common stock Retained aming 29.733 22.000 Totality Totalny 00 111.738 178.001 5