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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 $77,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31.
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 $77,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31.
Final answer:The question requests the preparation of Wells Technical Institute's annual financial statements, necessitating data like revenue, expenses, and asset & liability details to accurately create an income statement, statement of retained earnings, and a balance sheet.Explanation:The question involves preparing financial statements for Wells Technical Institute, including an income statement, a statement of retained earnings, and a balance sheet as of December 31. Financial statements are crucial for assessing the financial health and performance of an institution. An income statement showcases revenue and expenses, leading to net income. The statement of retained earnings adjusts the institute's retained earnings for profits or losses and dividends. Lastly, a balance sheet lists assets, liabilities, and equity, offering a snapshot of the institution's financial position at a point in time.To accurately answer the question, specific financial data such as revenue, expenses, and details on assets and liabilities are necessary. These elements are vital for calculating the net income, retained earnings adjustments, and the overall balance sheet equation of assets = liabilities + equity....