Wells technical institute (WTI) a school owned by Tristan wells provides training to individuals who pay tuition directly to the school. WTI offers training to groups in off site locations. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. it's unadjusted trial balance as of December 31 follows, along with descriptions of items. a. an analysis of WTI insurance policies shows that $3732 of coverage expired. b. an inventory count shows that teaching supplies costing $3235 are available at year end. c. annual depreciation on equipment is $14929 d. annual depreciation on professional library is $7464 e. on September 1, WTI agreed to fo five training courses for a client for $2500 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 $12500 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 class. at December 31, $12100 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 employee. h. the balance in the prepaid rent account represents rent for December.

1. prepare wells technical institutes income statement for tge year. 2. prepare wells technical institutes statement of owner's equity for the year. the t wells capital account balance was $107351 December 31 of the prior year and there were no owner investments in the current year. 3. prepare wells technical institutes balance sheet as of December 31.