hapter 3 Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P The following information applies to the questions displayed below Wells Technical Institute (WT), a school owned by Tristana Wells, provides training to individuals who pay tuition follows. WTI initially records prepaid expenses and uneamed revenues in balance sheet accounts. Descriptions through h that require adjusting entries on December 31 2017, follow Additional Information Items a. An analysis of WTI's insurance policies shows that $3,071 of coverage has expired b. An inventory count shows that teaching supplies costing $2.662 are available at year-end 2017 c. Annual depreciation on the equipment is $12,285 d. Annual depreciation on the professional library is $6.142 e. On November 1. WTI agreed to do a special six-month course (starting immediately) for a client. The contract c monthly fee of $3,000, and the client paid the first five months' fees in advance. When the cash was received. Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collecte f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3.040 tu g. WTTs two employees are paid weekly. As of the end of the year, two days salaries have accrued at the rate of h. The balance in the Prepaid Rent account represents rent for December month payable at the end of the class. The class started on October 15, but no payment has yet been received accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual) day for each employee WELLS TECHNICAL INSTSTUTE Unadjusted Trial Balance December 31, 2017 Debit Credit 28,888 Cash Accounts receivable Teaching supplies Prepaid Insurance Prepeid rent Professional library Accumulated depreciation professional ibrary Equipment Accunulated depreciation-tquipment Accounts peyable Salaries payable Unearned training fees Common stock 10,768 16,155 32,307 75,368 5 9,693 17,232 35,613 5,000 11,000 Prex 6 of 6 thank-you-lettenin..p g. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrue day for each employee. h. The balance in the Prepaid Rent account represents rent for December. Unadjusted Trial Balance Decenber 31, 2017 Debit s 28,009 10,768 2,155 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library 32,307 $ 9,693 Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned training fees Common stock Retained earnings Dividends Tuition fees earned Training fees earned Depreciation expense-professional library Depreciation expense-Equipment salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense 75,368 17,232 35,613 15,000 11,e88 57,493 43,078 189,846 40,923 51,694 23,705 7,539 Utilities expense Totals s 296,800 $296,880 Problem 3-3A Part 3 3-a. Prepare Wells Technical Institute's income statement for the year 2017 3-b. Prepare Wells Technical Institute's statement of owners equity for the year 2017 3-C. Prepare Wells Technical Institute's balance sheet as of December 31. 2017 Prev thank-you-letterin-jpg Totals 296,800 $296,800 Problem 3-3A Part 3 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 Complete this question by entering your answers in the tabs below. Req 3A Req 3B Req 3C Prepare Wells Technical Institute's statement of owner's equity for the year 2017 WELLS TECHNICAL INSTITUTE Statement of Retained Earnings For Year Ended December 31, 2017 Re tained earnings, December 31, 2016 Retained earnings. December 31 2017 Req 3A Req 3C >