Wells Technical Institute (WTI), a school owned by TristanaWells, provides training to individuals who pay tuition directly tothe school. WTI also offers training to groups in off-sitelocations. Its unadjusted trial balance as of December 31, 2017,follows. WTI initially records prepaid expenses and unearnedrevenues in balance sheet accounts. Descriptions of items a throughh that require adjusting entries on December 31, 2017, follow.Additional Information Items An analysis of WTI's insurancepolicies shows that $3,071 of coverage has expired. An inventorycount shows that teaching supplies costing $2,662 are available atyear-end 2017. Annual depreciation on the equipment is $12,285.Annual depreciation on the professional library is $6,142. OnNovember 1, WTI agreed to do a special six-month course (startingimmediately) for a client. The contract calls for a monthly fee of$2,500, and the client paid the first five months' fees in advance.When the cash was received, the Unearned Training Fees account wascredited. The fee for the sixth month will be recorded when it iscollected in 2018. On October 15, WTI agreed to teach a four-monthclass (beginning immediately) for an individual for $3,540 tuitionper month payable at the end of the class. The class started onOctober 15, but no payment has yet been received. (WTI's accrualsare applied to the nearest half-month; for example, Octoberrecognizes one-half month accrual.) WTI's two employees are paidweekly. As of the end of the year, two days' salaries have accruedat the rate of $100 per day for each employee. The balance in thePrepaid Rent account represents rent for December. WELLS TECHNICALINSTITUTE Unadjusted Trial Balance December 31, 2017 Debit CreditCash $ 26,038 Accounts receivable 0 Teaching supplies 10,013Prepaid insurance 15,023 Prepaid rent 2,004 Professional library30,043 Accumulated depreciation—Professional library $ 9,014Equipment 70,087 Accumulated depreciation—Equipment 16,025 Accountspayable 34,565 Salaries payable 0 Unearned training fees 12,500Common stock 15,000 Retained earnings 48,693 Dividends 40,059Tuition fees earned 102,148 Training fees earned 38,055Depreciation expense—Professional library 0 Depreciationexpense—Equipment 0 Salaries expense 48,071 Insurance expense 0Rent expense 22,044 Teaching supplies expense 0 Advertising expense7,010 Utilities expense 5,608 Totals $ 276,000 $ 276,000 3-a.Prepare Wells Technical Institute's income statement for the year2017. 3-b. Prepare Wells Technical Institute's statement of owner'sequity for the year 2017. 3-c. Prepare Wells Technical Institute'sbalance sheet as of December 31, 2017.