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 hthat require adjusting entries on December 31, 2017, follow.

Additional Information Items

1. An analysis of WTI's insurance policies shows that $4,129 of coverage has expired.
2. An inventory count shows that teaching supplies costing $3,578 are available at year-end 2017.
3. Annual depreciation on the equipment is $16,515.
4. Annual depreciation on the professional library is $8,258.
5. On November 1, WTI agreed to 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.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $5,320 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.)
7. 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.
8. The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE

Unadjusted Trial Balance

December 31, 2017

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 depreciationProfessional library

$

9,693

Equipment

75,368

Accumulated depreciationEquipment

17,232

Accounts payable

36,613

Salaries payable

0

Unearned training fees

14,000

Common stock

11,000

Retained earnings

57,493

Dividends

43,078

Tuition fees earned

109,846

Training fees earned

40,923

Depreciation expenseProfessional library

0

Depreciation expenseEquipment

0

Salaries expense

51,694

Insurance expense

0

Rent expense

23,705

Teaching supplies expense

0

Advertising expense

7,539

Utilities expense

6,031

Totals

$

296,800

$

296,800

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.