Problem $3-3$A Preparing adjusting entries, adjusted trial balance, and financial statements LO P$1,$ P$2,$ P$3,$ P$4,$ P$5,$ P$6[$The following information applies to the questions displayed below.$]$ 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 $ $2,542$ of coverage has expired. b$.$ An inventory count shows that teaching supplies costing $ $2,204$ are available at year$-$end. c$.$ Annual depreciation on the equipment is $ $10,170.$ d$.$ Annual depreciation on the professional library is $ $5,085.$ e$.$ On September $1,$ WTI agreed to do five courses for a client for $ $2,800$ 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 $ $14,000$ cash in advance for all five courses on September $1,$ and WTI credited Unearned Training Fees. 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 $31,$ $ $5,498$ of the tuition 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. $/$r$/$n Required: $1.$ Prepare the necessary adjusting journal entries for items a through h$.$ Assume that adjusting entries are made only at year$-$end. $/$r$/$n $2-$a$.$ Post the balance from the unadjusted trial balance and the adjusting entries in to the T$-$accounts. $2-$b$.$ Prepare an adjusted trial balance. $/$r$/$n $3-$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 $ $83,000$ on December $31$ of the prior year. $3-$c$.$ Prepare Wells Technical Institute's balance sheet as of December $31.$