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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. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items athrough h that require adjusting entries on December 31, 2017, follow.
  
Additional Information Items

An analysis of WTI's insurance policies shows that $3,071 of coverage has expired.

An inventory count shows that teaching supplies costing $2,662 are available at year-end 2017.

Annual depreciation on the equipment is $12,285.

Annual depreciation on the professional library is $6,142.

On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $3,000, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.

On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,040 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)

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.

The balance in the Prepaid Rent account represents rent for December.

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					33,702
Salaries payable					0
Unearned training fees					15,000
Common stock					15,000
Retained earnings					50,908
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

3-a. Prepare Wells Technical Institute's income statement for the year 2017.
3-b. Prepare Wells Technical Institute's statement of owner's equity for the year 2017.
3-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2017.

Prepare Wells Technical Institute's income statement for the year 2017.

	WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31, 2017

Prepare Wells Technical Institute's statement of owner's equity for the year 2017.

	WELLS TECHNICAL INSTITUTE Statement of Retained Earnings For Year Ended December 31, 2017 Retained earnings, December 31, 2016 Retained earnings, December 31, 2017

Prepare Wells Technical Institute's balance sheet as of December 31, 2017.

	WELLS TECHNICAL INSTITUTE Balance Sheet December 31, 2017 Total equity

Answer 1

Adjusted Trial Balance:
Accounts	Debit $	Credit $
Cash	26944
AR	7600
Teaching supplies	2662
Prepaid ins.	12474
Prof. library	31088
Acc Dep - Professonal lib		15470
equip	72533
Acc Dep - equip		28867
AP		33702
Salary Payable		400
Unearned training fees		9000
Common Stock		15000
RE		50908
Dividend	41452
Tuition fees earned		113301
training fees earned		45379
Depre- prof library	6142
Depre - Eq	12285
Salary exp	50143
Insur exp	3071
rent exp	24876
teaching supplies exp	7700
Advertising expense	7254
Utilities expense	5803
Total	312027	312027

Income Statement:
Tuition fees earned		113301
training fees earned		45379
Total revenues		158680
Depre- prof library	6142
Depre - Eq	12285
Salary exp	50143
Insur exp	3071
rent exp	24876
teaching supplies exp	7700
Advertising expense	7254
Utilities expense	5803
Total expenses		117274
Net Income		41406

RE statement:	Amount
Opening balance	50908
add:Net Income	41406
less: Dividend	-41452
Closing balance	50862

Balance sheet :
Liabilities	Amount	Assets	Amount
AP	33702	Cash	26944
Salary Payable	400	AR	7600
Unearned training fees	9000	Teaching supplies	2662
Common Stock	15000	Prepaid ins.	12474
RE	50862	Prof. library	31088
		Acc Dep - Professonal lib	-15470
		equip	72533
		Acc Dep - equip	-28867
Total	108964	Total	108964