MPS, Inc. has the following unadjusted account balances as of December 31, 2022, the company’s year-end:
• Cash: $430,000
• Accounts Receivable: $2,000
• Prepaid Insurance: $14,000
• Prepaid Rent: $22,000
• Equipment: $60,000
• Accumulated Depreciation—Equipment: $0
• Accounts Payable: $10,000

• Common Stock: $16,000
• Sales Revenue: $823,100
• Wage Expense: $290,400
• Utilities Expense: $11,200
• Insurance Expense: $8,500
• Rent Expense: $11,000
• Depreciation Expense—Equipment: $0

At year-end, MPS makes adjusting journal entries to properly record revenues and expenses. The following information applies to the adjusting journal entries:

• The prepaid insurance balance relates to an insurance policy purchased on January 1, 2022, that covers the period of January 1, 2022, to December 31, 2022.
• The prepaid rent balance relates to rent paid in June 2022 to cover the period of July 1, 2022, to June 30, 2023.
• Wages for 2022 in the amount of $26,000 will be paid after year-end and have not yet been recorded.
• MPS purchased the equipment in the beginning of January 2022 and will depreciate it on a yearly basis.

No depreciation has been recorded yet. The equipment has a useful life of 15 years, no residual value, and will be depreciated on a straight-line basis. Prepare the journal entries necessary to record the adjustments at year-end.