Before any adjusting entries were made, the company prepared the following trial balance as of December 31:

In order to make the adjusting entries, the following information has been assembled:
a. The notes receivable were issued on June 1. The annual interest rate on the notes is 11%. Interest is to be received each year on May 31; accordingly, no interest has been received.
b. The unearned fee revenue represents cash received in advance on February 1. This $225,000 relates to a three-year contract which began on February 1. It is expected that the fees will be earned evenly over the three-year contract period. As of December 31, no revenue had yet been recognized on this contract.
c. The prepaid rent represents cash paid in advance on October 1. This $192,000 relates to a five-year rental agreement that began on October 1. As of December 31, no expense had yet been recognized in association with this rental agreement.
d. As of December 31, unpaid (and unrecorded) wages totaled $17,000.
1. Prepare the necessary adjusting journal entries.
2. Prepare an adjusted trialbalance.

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Debit S 87,000 192,000 Credit Prepaid Rent Building Accounts Payable.. Unearned Fee Revenuee Capital Stock Retained Earnings.W ....210,000 $165,000 225,000 200,000 90,000 22,000 Fee Revenue Wages Expense Utilites Expense... 257,000 229,000 53,000 $937,000 Totals. $937,000