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 offsite locations. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. lts unadjusted trial balance as of December 31 follows, along with descriptions of items athrough it that require adjusting entries on December 31. Additional Information Items 5. An analysis of WTl's insurance policies shows that $3,996 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,464 are available at yearend. c. Annual depreciation on the equipment is $15,986. d. Annual depreciation on the professional library is $7,993. e. On September 1, WTI agreed to do five courses for a client for $2,700 each. Two courses will start immediately and nish before the end ofthe year. Three courses will not begin until next year The client paid $13,500 cash in advance for all five 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 ofthe class. At December 31, $12,903 of the tuition revenue has been earned by WTI. g. WTl'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. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit Credit Cash $ 27,396 Accounts receivable 6 Teaching Supplies 16,536 Prepaid insurance 15,866 Prepaid rent 2,168 Professional library 31,616 Accumulated depreciationProfessional library $ 9,484 Equipment 162,666 Accumulated depreciationEquipment 16,861 Accounts payable 26,666 Salaries payable 6 Unearned revenue 13,566 Common stock 28,28? Retained earnings 22,666 Dividends 42,149 Tuition revenue 162,42? Training revenue 46,646 Depreciation expenseProfessional library 6 Depreciation expenseEquipment 6 Salaries expense 56,529 Insurance expense 6 Rent expense 23,188 Teaching supplies expense 6 Advertising expense 7,326 Utilities expense 5,961 Totals $ 318,649 $313,949 Problem 3-3A (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 $77,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31