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 $$3,335$ of coverage has expired.

b$.$ An inventory count shows that teaching supplies costing $$2,891$ are available at year$-$end.

c$.$ Annual depreciation on the equipment is $$13,342.$

d$.$ Annual depreciation on the professional library is $$6,671.$

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 $31,$ $$9,653$ 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$,$$$28,000,],[$Accounts receivable,$0,],[$Teaching supplies,$10,768,],[$Prepaid insurance,$16,155,],[$Prepaid rent,$2,155,],[$Professional library,$32,307,],[$Accumulated depreciation$-$Professional library,,$$9,693],[$Equipment$,101,000,],[$Accumulated depreciation$-$Equipment,,$17,232],[$Accounts payable,,$24,000],[$Salaries payable,,$0],[$Unearned revenue,,$13,500],[$Common stock,,$29,238],[$Retained earnings,,$78,000],[$Dividends$,43,078,],[$Tuition revenue,,$109,846],[$Training revenue,,$40,923],[$Depreciation expense$-$Professional library,$0,],[$Depreciation expense$-$Equipment,$\backslash$theta $,],[$Salaries expense,$51,694,],[$Insurance expense,$\backslash$theta $,],[$Rent expense,$23,705,],[$Teaching supplies expense,$\backslash$theta $,],[$Advertising expense,$7,539,],[$Utilities expense,$6,031,],[$Totals$,$$$322,432,$$$322,432]]$

$3-$c$.$ Prepare Wells Technical Institute's balance sheet as of December $31.$

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req $3$A

Req$3B$

Prepare Wells Technical Institute's income statement for the year.

Req $3$A

Req $3$B

Req$3C$

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

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

$\backslash$table$[[$WELLS TECHNICAL INSTITUTE$],[$Balance Sheet$],[$December $31],[$Assets$],[$Cash$,,28,000],[$Accounts receivable,,$0$x$],[$Teaching supplies,,$10,768\backslash$times $],[$Prepaid insurance,,$16,155\backslash$times $],[$Professional library,,$32,307\backslash$times $],[$Accumulated depreciation$-$Professional library x$,-9,693\backslash$times $,],[,-9,693],[$Equipment$,101,000,],[$Depreciation expense$-$Equipment,$0$x$,101,000],[$Total assets,,$178,537],[$Liabilities$,2],[$Accounts payable,,$24,000$vv$],[$Salaries payable,,$400$vv$],[$Unearned revenue,,$13,500\backslash$times $],[,37,900],[$Equity$,2],[$Common stock,,$29,238],[$Retained earnings,,$78,000\backslash$times $],[,107,238],[$Total liabilities and equity,,$145,138]]$

Rea $3$B

Problem $3-3$A $($Algo$)$ Part $3$

$3-$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

$$78,000$ on December $31$ of the prior year.

$3-$c$.$ Prepare Wells Technical Institute's balance sheet as of December $31.$

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req $3$A

Req$3B$

Req $3$C

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

$$78,000$ on December $31$ of the prior year.