A review of the ledger of Bellingham Company at December 31, 2014, produces the following data pertaining to the preparation of annual adjusting entries.

i¢ Salaries and Wages Payable $0. There are eight salaried employees. Salaries are paid every Friday for the current week. Five employees receive a salary of $800 each per week, and three employees earn $500 each per week. Assume December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December.

. Unearned Rent Revenue $324,000. The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.

Term Number of Date (in months) Monthly Rent Leases Nov. 1 6 $4,000 5 Dec. 1 6 $8,500 4

. Prepaid Advertising $15,600. This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as follows.

Number of Magazine Contract Date Amount Issues A650 May 1 $6,000 12 B974 Oct. 1 9,600 24 The first advertisement runs in the month in which the contract is signed.

. Notes Payable $100,000. This balance consists of a note for one year at an annual interest rate of 9%, dated June 1.

Instructions Prepare the adjusting entries at December 31, 2014. (Show all computations.)