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 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 An analysis of WTI's insurance policies shows that $2,939 of coverage has expired An inventory count shows that teaching supplies costing $2,547 are available at year end Annual depreciation on the equipment is $11,756 Annual depreciation on the professional library is $5,878 On September 1, WTI agreed to do five training courses for a client for $2,900 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 $14,500 cash in advance for all five training courses on September 1, and WTI credited Unearned Revenue 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, $7,200 of the tuition revenue has been earned by WTI 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 The balance in the Prepaid Rent account represents rent for December WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit Credit Cash $ 27,547 Accounts receivable 0 Teaching supplies 10,594 Prepaid insurance 15,894 Prepaid rent 2,120 Professional library 31,784 Accumulated depreciationProfessional library $ 9,537 Equipment 104,000 Accumulated depreciationEquipment 16,954 Accounts payable 22,000 Salaries payable 0 Unearned revenue 14,500 T Wells, Capital 110,527 T Wells, Withdrawals 42,381 Tuition revenue 108,069 Training revenue 40,261 Depreciation expenseProfessional library 0 Depreciation expenseEquipment 0 Salaries expense 50,858 Insurance expense 0 Rent expense 23,320 Teaching supplies expense 0 Advertising expense 7,417 Utilities expense 5,933 Totals $ 321,848 $ 321,848 3 a Prepare Wells Technical Institute's income statement for the year 3 b Prepare Wells Technical Institute's statement of owner's equity for the year The T Wells, Capital account balance was $110,527 on December 31 of the prior year, and there were no owner investments in the current year 3 c Prepare Wells Technical Institute's balance sheet as of December 31

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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

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 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.

An analysis of WTI's insurance policies shows that $2,939 of coverage has expired.
An inventory count shows that teaching supplies costing $2,547 are available at year-end.
Annual depreciation on the equipment is $11,756.
Annual depreciation on the professional library is $5,878.
On September 1, WTI agreed to do five training courses for a client for $2,900 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 $14,500 cash in advance for all five training courses on September 1, and WTI credited Unearned Revenue.
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, $7,200 of the tuition revenue has been earned by WTI.
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.
The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31
	Debit	Credit
Cash	$ 27,547
Accounts receivable	0
Teaching supplies	10,594
Prepaid insurance	15,894
Prepaid rent	2,120
Professional library	31,784
Accumulated depreciationProfessional library		$ 9,537
Equipment	104,000
Accumulated depreciationEquipment		16,954
Accounts payable		22,000
Salaries payable		0
Unearned revenue		14,500
T. Wells, Capital		110,527
T. Wells, Withdrawals	42,381
Tuition revenue		108,069
Training revenue		40,261
Depreciation expenseProfessional library	0
Depreciation expenseEquipment	0
Salaries expense	50,858
Insurance expense	0
Rent expense	23,320
Teaching supplies expense	0
Advertising expense	7,417
Utilities expense	5,933
Totals	$ 321,848	$ 321,848

3-a. Prepare Wells Technical Institute's income statement for the year. 3-b. Prepare Wells Technical Institute's statement of owner's equity for the year. The T. Wells, Capital account balance was $110,527 on December 31 of the prior year, and there were no owner investments in the current year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31.