A review of the ledger of Greenberg Corporation at October 31, 2015, produces the following unadjusted data for the preparation of annual adjusting entries:

1. Prepaid Advertising, October 31 unadjusted balance, $14,160: The company has two advertising contracts in two trade magazines that publish monthly, with the first advertisement running in the month following the month in which the contract is signed. Contract A650 was signed February 1 to run in 12 magazine issues, starting March 1 for $520 per month. Contract B974 was signed June 1 to run in 16 magazine issues starting July 1 for $495 per month.

2. Unearned Revenue, October 31 unadjusted balance, $303,000: The company began subleasing office space in its new building on September 1. At October 31, the company had the following rental contracts that are paid in full for the entire term of the lease.

3. Bank Loan Payable, October 31 unadjusted balance, $90,000: This represents a one-year, 8% bank loan signed on April 1. Interest is payable at maturity.
4. Vehicles, October 31 unadjusted balance, $39,000: The company owns a delivery truck, purchased for $39,000 on April 1, 2014. The truck has a five-year useful life.
Instructions
(a) Prepare a calculation to show why the unadjusted balance in the Prepaid Advertising account is $14,160 and why the unadjusted balance in the Unearned Revenue account is $303,000.
(b) Prepare the adjusting journal entries required at October 31.

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Term (in months) 6i 6i Monthly Rent $4,500 7,000 Date Number of Leases Sept. 1 Oct. 1 4