Required information

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Wells Technical Institute $($WTI$)$ 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 $$2,674$ of coverage has expired.

b$.$ An inventory count shows that teaching supplies costing $$2,318$ are available at year$-$end.

c$.$ Annual depreciation on the equipment is $$10,698.$

d$.$ Annual depreciation on the professional library is $$5,349.$

e$.$ On September $1,$ WTI agreed to do five training 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 training courses on September $1,$ and WTI credited Unearned Revenue.

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 $31,$ $$6,153$ 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.

$3-$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

$$79,000$ on December $31$ of the prior year.

$3-$c$.$ Prepare Wells Technical Institute's balance sheet as of December $31.$

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Req $3$ A

Prepare Wells Technical Institute's balance sheet as of December $31.$

Note: Include all balance sheet accounts, even those with zero balances.