Homework: Adjusting Accounts Problems Assignment (i Saved 4 Required information Part 3 of 3 [The following information applies to the questions displayed below.] Wells Technical Institute (WTI) provides training to individuals who pay tuition directly to the school. WTI also offers training 4.16 to groups in off-site locations. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. points 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 eBook a. An analysis of WTI's insurance policies shows that $2,807 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,433 are available at year-end. c. Annual depreciation on the equipment is $11,227. Print d. Annual depreciation on the professional library is $5,614. e. On September 1, WTI agreed to do five training courses for a client for $2,500 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 $12,500 cash in advance for all five training courses on September 1, and WTI credited Unearned Revenue. References f. 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, $7,548 of the tuition revenue has been earned by WTI. g. 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. h. The balance in the Prepaid Rent account represents rent for December.WELLS TECHNICAL INSTITUTE E Unadjusted Trial Balance eBook December 31 Debit Credit _ Cash $ 2?,698 E Accounts receivable 6 Print Teaching supplies 16,652 Prepaid insurance 15,981 Prepaid rent 2,132 E Professional library 31,958 References Accumulated depreciationPro'Fessional library $ 9,589 Equipment 99,666 Accumulated depreciationEquipment 17,646 Accounts payable 26,666 Salaries payable 6 Unearned revenue 12,566 Common stock 19,76? Retained earnings 84,666 Dividends 42,613 Tuition revenue 168,661 Training revenue 46,482 Depreciation expenseProfessional library 6 Depreciation expenseEquipment 6 Salaries expense 51,136 Insurance expense 6 Rent expense 23,452 Teaching supplies expense 6 Advertising expense 2,45? Utilities expense 5,966 Totals :5 318,645 $ 318,645 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 $84,000 on December 31 ofthe prioryear. n _ n.._.__.._ ur_n_ -r__|_._-.__| |.__.:1._._-_ |__|_.___ _|___.. __ _:n___.__|__.. \"IA 3-c. Prepare Wells Technical Institute's balance sheet as of December 31. Complete this question by entering your answers in the tabs below. Req 3A Req 3B Req 3C Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 Req 3A Red 3B Req 3C 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 Retained earnings, December 31 current year end Prepare Wells Technical Institute's balance sheet as of December 31. {Include all balance sheet accounts, even those with zero balances.)