{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 uneared 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 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, $9.250 of the tuition has been eamed 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. n. The balance in the Prepaid Rent account represents rent for December. Credit $ 9,484 WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit Cash $ 27,396 Accounts receivable 0 Teaching supplies 10,536 Prepaid insurance 15,806 Prepaid rent 2,108 Professional library 31,610 Accumulated depreciation- Professional library Equipment 95,000 Accumulated depreciation Equipment Accounts payable Salaries payable Unearned training fees Common stock Retained earnings Dividends 42,149 Tuition fees earned Training fees earned Depreciation expense- Professional library 0 Depreciation expense-Equipment Salaries expense 50,579 Insurance expense 0 Rent expense 23,188 Teaching supplies expense 0 Advertising expense 7,376 Utilities expense 5,901 Totals $311,649 16,861 27,000 0 13,000 12,787 85,000 107,477 40, 040 0 $311,649 Req 3A Req 3B Reg 30 Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 Revenues Tuition fees eamed S 107,477 Training fees earned 40,040 S 147,517 Total revenues Expenses Salaries expense Rent expense Depreciation expense-Equipment Depreciation expense Professional library Advertising expense Utilities expense Teaching supplies expense Insurance expense 2,776 2,776 Total expenses Net Income Req 3A Req 3B > Complete this question by entering your answers in the tabs below. Req Req 3B Req 3C Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $85,000 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 end 0 0 Retained earnings, December 31 S current year end S Reg Req 3B Reg 3C 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 0 0 0 S 0 0 0 S