Prepare a Income Statement, Owners Equity, and Balance Sheet Based on the given data

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. Additional Information Items a. An analysis of WTI's insurance policies shows that $3,203 of coverage has expired. b. An Inventory count shows that teaching supplies costing $2,776 are available at year-end. c. Annual depreciation on the equipment is $12,814 d. Annual depreciation on the professional library is $6,407 e. On September 1, WTI agreed to do five training courses for a client for $2,700 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 $13,500 cash in advance for all five training courses on September 1, and WTI credited Unearned Revenue. 1. 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. $9,000 of the tuition revenue has been earned by WTI. 9. 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 Unadjusted Trial Balance December 31 Credit Debit $ 27,547 0 10,594 15,894 2,120 31,784 $ 9,537 99,000 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned revenue T. Wells, Capital T. Wells, Withdrawals Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 16,954 25,000 0 13,500 103,527 42,381 108,069 40,261 0 0 50,858 0 23,320 0 7,417 5,933 316,848 $ 316,848 13 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 $103,527 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 Income Statement For Year Ended December 31 Revenues Tuition revenue Training revenue + >> $ 108,069 X 40,261 $ 148,330 Total revenues Expenses Salaries expense Rent expense Advertising expense Teaching supplies expense Depreciation expense-Professional library Depreciation expense-Equipment Insurance expense Utilities expense 50,858 23,320 7,417 0X 0 x 0 X 0 X 5,933 Total expenses Net income 87,528 60,802 X Req Req 3B Req 3C Prepare Wells Technical Institute's statement of owner's equity for the year. The T. Wells, Capital account balance was $103,527 on December 31 of the prior year, and there were no owner investments in the current year. WELLS TECHNICAL INSTITUTE Statement of Owner's Equity For Year Ended December 31 T. Wells, Capital, December 31 prior year Add: Investments by owner 0 0 T. Wells, Capital, December 31 current year 0 WELLS TECHNICAL INSTITUTE Balance Sheet December 31 0 0 $ 0 0 + $ 0