Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, P6 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 ako offers training to groups in oll 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 that require adjusting entries on December 31 Additional Information Items a. An analysis of WII's insurance policies shows that $3,335 of coverage has expired b. An inventory count shows that teaching supplies costing $2,891 are available at year end. c. Annual depreciation on the equipment is $13,342 d. Annual depreciation on the professional library is $6,671 e. On September 1, WTI agreed to do five courses for a client for $2.400 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 $12.000 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees 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, $10.403 of the tuition has been earned by WTL g. WTTS 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 TECNICAL INSTITUTE Unadjusted Trial Balance Debit 10,710 16.058 Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation Professional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable 38, 341 Problem 3-3A Part 3 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 I. Wells, Capital account balance was 568,123 December of the prior year 3-c. Prepare Wells Technical Institute's balance sheet as of December 31 Complete this question by entering your answers in the tabs below. Reg 3A Reg Prepare Wells Technical Institute's statement of owner's equity for the year. Note: there were no owner Investments during the year. The T. Wells, Capital account balance was $68,123 on December 31 of the prior year. WELLS TECHNICAL INSTITUTE Statement of Owner's Equity For Year Ended December 31 T Wells, Capital, December 31 prior year end T Wells Capital, December 31 current year and & Reg 3A Req3C > Prey of 3 Next Required information www Reg Reg 36 Req Prepare Wells Technical Institute's balance sheet as of December 31. Include all balance sheet accounts, even those with zero balances WELLS TECHNICAL INSTITUTE December 31