Marathon Magazine, Inc., has the following account balances, among others, in its trial balance at December 31 of the current year:

1. The inventory of supplies on hand at December 31 amounts to \(\$ 720\).
\section*{Problem 3-2A}
Prepare adjusting entries and post to ledger accounts (L.O. 4)
\section*{Additional data}
2. The balance in the Prepaid Rent account is for a one-year period starting October 1 of the current year.
3. One-third of the \(\$ 15,000\) balance in Unearned Subscription Fees has been earned.
4. Since the last payday, the employees of the company have earned additional salaries in the amount of \(\$ 5,430\).

a. Prepare the year-end adjusting journal entries at December 31. Assume you used page 22 of the general journal to record the journal entries.

b. Open ledger accounts for each of the accounts involved, enter the balances as shown in the trial balance, post the adjusting journal entries, and calculate year-end balances.

Transcribed Image Text:

Debits Credits Supplies on Hand Prepaid Rent. Unearned Subscription Fees Subscriptions Revenue Salaries Expense $ 3,720 7,200 123,000 $ 15,000 261,000