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

Leathe inventory of supplies on hand at December 31 amounts to $720. Ce Additional data 2. The balance in the Prepaid Rent account is for a one-year period starting October.
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 e Required 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.

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