Wells Technical Institute (WTI) 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. Additional Information Items

1. An analysis of WTI's insurance policies shows that $2,807 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,433 are available at year-end.
3. Annual depreciation on the equipment is $11,227.
4. Annual depreciation on the professional library is $5,614.
5. 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.
6. 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, $6,548 of the tuition revenue has been earned by WTI.
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
   	Debit	Credit
   Cash	$ 27,698
   Accounts receivable	0
   Teaching supplies	10,652
   Prepaid insurance	15,981
   Prepaid rent	2,132
   Professional library	31,958
   Accumulated depreciationProfessional library		$ 9,589
   Equipment	102,000
   Accumulated depreciationEquipment		17,046
   Accounts payable		24,000
   Salaries payable		0
   Unearned revenue		14,500
   Common stock		22,767
   Retained earnings		84,000
   Dividends	42,613
   Tuition revenue		108,661
   Training revenue		40,482
   Depreciation expenseProfessional library	0
   Depreciation expenseEquipment	0
   Salaries expense	51,136
   Insurance expense	0
   Rent expense	23,452
   Teaching supplies expense	0
   Advertising expense	7,457
   Utilities expense	5,966
   Totals	$ 321,045	$ 321,045

WELLS TECHNICAL INSTITUTE
Income Statement
For Year Ended December 31
Assets
Insurance expense	$2,807
Prepaid insurance	2,807
Total revenues		$5,614
		0

Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $84,000 on December 31 of the prior year.

WELLS TECHNICAL INSTITUTE
Statement of Retained Earnings
For Year Ended December 31
Retained earnings, December 31 prior year end
	0
Retained earnings, December 31 current year end	$0

Prepare Wells Technical Institute's balance sheet as of December 31. (Include all balance sheet accounts, even those with zero balances.)

WELLS TECHNICAL INSTITUTE
Balance Sheet
December 31
		0
		0
		$0
		0
		0
		$0