The following selected accounts appear in Sloan Company's unadjusted trial balance at December 31 , 2010 , the end of its fiscal year (all accounts have normal balances).

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a. Prepare Sloan Company's accounting adjustments at December 31,2010, using the financial statement effects template and the following additional information.
1. Prepaid advertising at December 31 is \(\$ 800\).
2. Unpaid wages earned by employees in December are \(\$ 1,300\).
3. Prepaid insurance at December 31 is \(\$ 2,280\).
4. Unearned service fees at December 31 are \(\$ 3,000\).
5. Rent revenue of \(\$ 1,000\) owed by a tenant is not recorded at December 31 .
b. Prepare entries on January 4, 2011, using the financial statement effects template to record (1) payment of \(\$ 2,400\) cash in wages and (2) cash receipt from the tenant of the \(\$ 1,000\) rent revenue.

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Prepaid Advertising Wages Expense.. Prepaid Insurance $ 1,200 Unearned Service Fees 43,800 Service Fees Earned.. 3,420 Rental Income.... $ 5,400 87,000 4,900