3-3

[The following information applies to the questionsdisplayed below.]

Wells Technical Institute (WTI), a school owned by Tristana Wells,provides training to individuals who pay tuition directly to theschool. WTI also offers training to groups in off-site locations.Its unadjusted trial balance as of December 31, 2017, follows. WTIinitially records prepaid expenses and unearned revenues in balancesheet accounts. Descriptions of items athrough hthat require adjusting entries on December 31, 2017, follow.
  
Additional Information Items

1. An analysis of WTI's insurance policies shows that $2,807 ofcoverage has expired.
2. An inventory count shows that teaching supplies costing $2,433are available at year-end 2017.
3. Annual depreciation on the equipment is $11,227.
4. Annual depreciation on the professional library is $5,614.
5. On November 1, WTI agreed to do a special six-month course(starting immediately) for a client. The contract calls for amonthly fee of $2,700, and the client paid the first five months'fees in advance. When the cash was received, the Unearned TrainingFees account was credited. The fee for the sixth month will berecorded when it is collected in 2018.
6. On October 15, WTI agreed to teach a four-month class(beginning immediately) for an individual for $2,819 tuition permonth payable at the end of the class. The class started on October15, but no payment has yet been received. (WTI's accruals areapplied to the nearest half-month; for example, October recognizesone-half month accrual.)
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 foreach employee.
8. The balance in the Prepaid Rent account represents rent forDecember.

WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017
	Debit			Credit
Cash	$	26,944
Accounts receivable		0
Teaching supplies		10,362
Prepaid insurance		15,545
Prepaid rent		2,073
Professional library		31,088
Accumulated depreciation—Professional library				$	9,328
Equipment		72,533
Accumulated depreciation—Equipment					16,582
Accounts payable					35,202
Salaries payable					0
Unearned training fees					13,500
Common stock					14,000
Retained earnings					51,908
Dividends		41,452
Tuition fees earned					105,701
Training fees earned					39,379
Depreciation expense—Professional library		0
Depreciation expense—Equipment		0
Salaries expense		49,743
Insurance expense		0
Rent expense		22,803
Teaching supplies expense		0
Advertising expense		7,254
Utilities expense		5,803
Totals	$	285,600		$	285,600

2-a. Post the balance from the unadjusted trialbalance and the adjusting entries in to the T-accounts.
2-b. Prepare an adjusted trial balance.
  3-a. Prepare Wells TechnicalInstitute's income statement for the year 2017.
3-b. Prepare Wells Technical Institute's statementof owner's equity for the year 2017.
3-c. Prepare Wells Technical Institute's balancesheet as of December 31, 2017.