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Required information The following information applies to the questions displayed below) Wells Technical Institute (WT), a school owned by Tristana Wells, provides training to individuals who pay tuition di 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 a through h that require adjusting entries on December 31, 2017, follow. Additional Information Items a. An analysis of WTIs 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 2017 c. Annual depreciation on the equipment is $10,698 d. Annual depreciation on the professional library is $5,349 e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a 5 monthly fee of $2,800, 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. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,461 tuition per g. WTIs two employees are paid weekly. As of the end of the year, two days salaries have accrued at the rate of $100 per h. The balance in the Prepaid Rent account represents rent for December month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTIs accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) day for each employee. Unadjusted Trial Balance Decenber 31, 2017 Debit Credit Cash Prepaid insurance Prepaid rent library

Unadjusted Trial Bal 28,151 Teaching supplies 10,826 16,242 2,166 Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable points 75,784 17,325 36,886 Common stock Retained earnings 14,000 11,000 57,862 43,310 Tuition fees earned Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 110,438 41,143 51,972 23, 826 7,579 s 298,400 $298,400 3-a. Prepare Wells Technical Institutes income statement for the year 2017 3-b. Prepare Wells Technical Institutes statement of owners equity for the year 2017 3-c. Prepare Wells Technical Institutes balance sheet as of December 31, 2017

3-a. Prepare Wells Technical Institutes income statement for the year 2017. 3-b. Prepare Wells Technical Institutes statement of owners equity for the year 2017 3-c. Prepare Wells Technical Institutes balance sheet as of December 31, 2017 Part 3 of 3 y entering your answers in the tabs below. Req 3A Req 3B Req 3C Prepare Wells Technical Institutes income statement for the year 2017 Income Statement For Year r 31, 2017 3 of 3 Next

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