BensEx, a mailing service, has just completed its first year of operations on December 31, 2010. Its general ledger account balances before year-end adjustments follow; no adjusting entries have been made to the accounts at any time during the year. Assume that all balances are normal.

An analysis of the firm's records reveals the following (business began on January 1, 2010).
1. The balance in Prepaid Advertising represents the amount paid for newspaper advertising for one year. The agreement, which calls for the same amount of space each month, covers the period from February 1, 2010, to January 31, 2011. BensEx did not advertise during its first month of operations.
2. Equipment, purchased January 1, has an estimated life of eight years.
3. Utilities expense does not include expense for December, estimated at \(\$ 325\). The bill will not arrive until January 2011 .
4. At year-end, employees have earned \(\$ 1,200\) in wages that will not be paid until January.
5. Supplies available at year-end amount to \(\$ 1,520\).
6. At year-end, unpaid interest of \(\$ 450\) has accrued on the notes payable.
7. The firm's lease calls for rent of \(\$ 525\) per month payable on the first of each month, plus an amount equal to \(0.5 \%\) of annual mailing fees earned. The rental percentage is payable within 15 days after the end of the year.
\section*{Required}
a. Prepare its unadjusted trial balance at December 31, 2010.
b. Prepare its adjusting entries using the financial statement effects template.

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Cash.... Accounts Receivable Prepaid Advertising Supplies. Equipment Notes Payable. $ 2,300 Accounts Payable.. 1,680 Mailing Fees Earned.. $ 2,700 9.530 5.120 Common Stock... 6,270 Wages Expense. 42,240 Rent Expense... 7,500 Utilities Expense. 86,000 38,800 6,300 3,020